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Article: An unexpected detour: now that car rental companies have begun cutting commissions, what's a retail travel agent to do? (Car Rentals).
- Article from:
- Hot Rod
- Article date:
- May 6, 2002
- Author:
CopyrightCOPYRIGHT 2002 Advanstar Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Last month, while the travel agency community was still trying to get used to the elimination of airline base commissions, it was dealt an unexpected blow from the car rental industry. Despite a seemingly healthy relationship between agents and car rental companies, it came as a shock when Hertz led the way in eliminating commissions on negotiated corporate and government rates. Many agents suddenly found themselves in a vise, looking for ways to survive in an industry spiraling away from a commission-based compensation system.
The storm began in early April when Hertz announced it was eliminating 5 percent base commissions paid to American and Canadian travel ...