Air Macau Cuts Commissions In China

13 Oct 2000

MACAU - Air Macau has cut travel agent commissions from nine percent to seven percent in China, effective October 1, and is considering implementing the cut in the Taiwan market, said market development manager Dominic Ching.

It first cut commissions in its home market on June 15.

While Ching said that cutting distribution costs was a longterm strategy of Air Macau, he noted, "We have to be careful. Travel agents account for more than 90 percent of our revenues."

While other niche carriers in Europe and the US have made good use of the Internet to go direct and bypass travel agents, Ching said Air Macau was a long way from a major Internet play.

"In the US, there is a lot of domestic travel. Asia is different in the way the market is structured. We are very conservative about getting into e-commerce."

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