More Than One Way To Skin A Cat (July 2009)

By Kate Rice

United Airlines recently disenfranchised some smaller agencies by telling them they can no longer use its credit card merchant number when booking the carrier's tickets. United says that it's move applies to only a small number of agencies that did very little business with the airline. But because of airlines "follow the leader" habits when it come to shifting distribution costs to agents (and consumers), the retail travel industry is hustifiably concerned. ASTA has launched a major effort to block or at least delay the implementation of United's new policy.

In the interim, savvy agents know that there is more than one way to skin a cat. Two long-time agency partners, tour operators and airline consolidators, offer an alternative when it comes to booking United--or any air at all. That means agents who do not have a credit card merchant account they can use for bokking airline tickets do have a way out.

Agents already turn to consolidators because they are a way to fatten to bottom line. These consolidators have an inventory of low-cost-first-and business-class tickets that can help agents get their clients a great fare and add in a markup from themselves. Most consolidators either have a credit card merchant status of their own or are able to use an airline's credit card merchant account and pass those benefits on to agents.

Many consolidators offer agents not just their consolidator fares, which are usually international fares, but published fares as well. In short, agents can turn to consolidators when it's to book United -- or any other carrier that might follow in its footsteps. "If travel agents book through consolidators, they don't have to worry about it," says Prem Cohly, CEO of Hariworld, a consolidator based in New York. He adds that virtually all consolidators have credit card merchant accounts...

So by using consolidators and tour operators, ther is a way to beat United at its own game. That said, if other airlines start to follow United, it might be time for some more aggressive action by ASTA and other agent groups.