Ticket agency fees: will not change 0?

Source: Internet
Author: User
Keywords Ticket agency fees
Tags advertising agencies agency agents air china air tickets airline airlines

"Domestic ticket agents, each income of 60 yuan!" A lot of ticketing agency brand website, have not had time to replace the investment advertising, the vote on behalf of the policy has been a sudden change in the situation. In early July, Air China and China Southern took the lead in breaking the agency fee standard of 3% and unanimously lowered it to 2%. More people later predicted that "the agency fee will be gradually reduced to 0". Then the agency fee reduction, agents and airlines, two "ticket sales" of the books, what will happen to change? Is the ticker agent brand website known as "Zero-risk venture venture project" Is it to become a superficial? For these changes, please see Nadu Jun for your detailed answer.

1, the domestic commission 2 + X was born

Prior to the reduction of air ticket agency fees, the proportion of ticket substitutions in domestic regulations was "3 + X". What is "3 + X"? 3 or 3%, which is the basic sales commission agent, X% is an additional bonus. The sum of the two, the total reward the airline agent can get from the airline.

3% is an iconic number in the industry. Its birth was intended to curb excessive ticket commissions. In May 2002, CAAC and other five ministries jointly issued the Circular on Determining the Sales of Dark Clasps and Illegal Sales of Domestic Flights and Regulating the Order of the Air Transport Market, which stipulated that the agency fees charged by airlines to agents should not exceed 3 %.

But in fact, 3% gradually evolved into a guarantee, while "X%" became a more rewarding return on ticket agencies. Insiders have counted such an account for the South are: China Southern Airlines reported annual revenues of 98.1 billion yuan in 2013, sales costs 7.855 billion yuan, the commission ratio of about 8%, that is, X is equal to 5; Air China Annual Report revenue of 97.6 billion yuan, the sales cost of 7.199 billion Yuan, commission ratio of about 7.3%, that is, X is equal to 4.3. Obviously, "X" is the bulk of the commission on behalf of the commission. In view of this, although there is a 3% "high limit" order, the percentage of commissions actually paid by airlines to air ticket agents may be double that of 3%.

The reporter also inquired about a number of brand websites for ticketing agents to join. According to their introduction, the average domestic ticket revenue is 60 yuan per ticket, and the average revenue of international air tickets is between 100 yuan and 150 yuan. Is this gain credible? This reporter to the two companies have proof ticket agency business. One Reply "The revenue space of agent fees solely based on carriers now has been reduced to almost zero, because the price war is all on the ticket." The other said "it is inconvenient to reply, please understand."

However, according to the calculation of China Southern Airlines and Air China commission ratio calculated above, if it is Guangzhou to fly Beijing ticket, ticket generation can get every 60 yuan or more revenue. However, the ticket to Guangzhou to fly to Shanghai, it is difficult to achieve advertising promised revenue.

2, the two giants save 2 billion yuan

Domestic airline agents and foreign counterparts are essentially different foreign airline agents is the "consumer's agent", that is, to provide consumers with air tickets to buy services, collect service fees from consumers; and domestic agents are "Airline agents", that is, the distribution channels of airlines, the profits generated mainly by the airline's rebate.

As is common in the industry, it is estimated that a 5% reduction in costs can be achieved if airlines adopt direct sales without an agency or GDS (Global Distribution System). The current high-end airline business travelers due to a sharp decline in policy reasons, high-speed rail network is also short-haul civil aviation impact routes, so this 5%, for the domestic airlines, the significance is very significant.

Even if direct marketing can not be fully adopted, the mere 1% reduction in the base ticket commission ratio can save airlines a significant operating cost. Still taking the previous data as an example for analysis: China Southern Airlines Annual Report 2013, the sales cost of 7.855 billion yuan, the commission ratio of about 8%, Air China Annual Report, the sales cost of 7.199 billion yuan, commission rate of about 7.3%. If the base commission is reduced by 1%, according to the 2013 data, China Southern Airlines can theoretically increase its profit by 981 million and Air China by 9.76 billion.

3, 1% crushed the ticket

If the percentage of ticket commission costs as a whole is 7%, then even a 1% drop will have little effect on the overall revenue of ticket sales agents. However, it can not be ignored that the proportion of ticket commission has entered the "downward cycle" and the pressure on the profit margin is lessened. When the era of zero agency fee comes, it may come as no surprise.

In fact, many people think this is not a surprise attack on this downward adjustment in early July. As early as 2010, Air France-KLM took the lead in practicing zero-agency fees, a move that once brought a boycott of more than 10 ticket giants such as Ctrip, AVIC, foreign airline service suits and CITS uniforms. However, Lufthansa and Swiss Air subsequently reduced agency fees from 3% to 1%. Not long ago, Air China also reduced the agency fee for international routes to 1%.

Under the trend of the times, the agent's profit space is rapidly compressed, that is to say, the "X" part of the proportion of smaller and smaller. According to insiders, in 2002, even if the Civil Aviation Administration and other five ministries and commissions limit their agency fees, the major airlines at the time were vying for the passengers and competing with the agencies to go far beyond the official fees and charges. Classification, the proportion of commission up to 20% or more, that is, deducting 3%, "X" part of the highest reached more than 17%. In addition, the airline also frequently issued dynamic awards, year-end awards.

An online travel company frankly told reporters that agency fees are indeed the main source of profits 3-4 years ago. In particular, some airlines have high agency fees, but more and more agencies and platforms have created a price war, Profit is getting lower and lower, only to find new profit point of innovation.

So the reduction, the agency in the end how? Tongcheng network stakeholders to accept the Southern Reporter interview, said the move may be a fatal blow to some small agents, but the OTA giants have long been prepared. "Ticket profits simply rely on the agency fee is very passive, and now the fare bargaining agency fees have all the discount to the passengers. We are now doing the packaging products on the basis of air tickets, so as to achieve greater customer base marketing Profit margins."

Ctrip also said the commission cut for Ctrip ticket has a limited impact. The proportion of votes on behalf of the commission continued to decline, so that Ctrip has long been psychologically prepared. "We initially realized that we could not achieve long-term sustainable development based solely on ticket commission income. After more than 10 years of hard work, as the technology continues to evolve, the degree of automation continues to improve, the products and services continue to improve, and the customer's travel experience continues Optimization makes Ctrip ticket dependency on the ticket commission is gradually reduced. "

4, ticket agent fees: will not change 0?

"Domestic ticket agents do not rule out the basic commission will be 0, the downward adjustment is only the beginning." Tongcheng network for the commission on behalf of the future trend of the commission, given such a forecast.

"As the proportion of airline direct sales increases, it is possible for the agent fee to be gradually reduced to zero," said a large online shopping platform owner who also has ticket sales. But this is an extreme condition, with more in the middle Long time, no one knows.Airlines do not achieve 100% direct sales day, will not reduce the agency fee to 0, of course, may account for 80% of direct sales, it has confidence to do so.

5, the airline itself to sell tickets

In fact, in order to improve the direct share of air tickets, airlines have not been idle. The end of 2006, the full implementation of electronic tickets, online booking and payment to become the most basic ticket sales. One-time settlement of the electronic ticket logistics (distribution) and cash flow (payment) link the two most troubled airline, airlines began to actively seek breakthrough in the information flow: deep plowing the official website and APP, Taobao travel and other network platform set up direct sales Flagship store, a large variety of promotions none other. Increasing the proportion of direct sales and gradually getting rid of the "bondage" of the agents may be the root cause of today's airlines having a lower agent fee.

Among them, one of the factors that is very beneficial to airlines is the prevalence of online ticketing. 100% of domestic air tickets online booking, the vast number of consumers used to buy air tickets online. "The airline's official flagship store has a natural advantage," said the head of Taobao Travel. "In online transactions, consumers are most concerned about the issue of integrity, while the airline's flagship store and consumers have a particularly strong brand Cognition, will naturally be considered safe and secure.At the same price, may even be a few dozen dollars higher, consumers will give priority to airline flagship store.

However, agents also "transfiguration." Ctrip said that the requirements of customers for airline ticket products and services are constantly changing. At present, more and more smart consumers are paying more attention to ticket-derived products and services besides prices. For example, Ctrip launched a long-term study of consumer demand after travel package, business optimization and other products to close to the needs of consumers, rather than selling a ticket alone.

Domestic airline agents and foreign counterparts are essentially different:

Foreign ticket agents are "agents of consumers", that is, to provide consumers with services to purchase air tickets and charge service fees from consumers.

Domestic agents are "airline agents", that is, the distribution channels of airlines, the profits generated by the airline's rebate-based.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.