Low Air Commissions Draining Mexican Travel Agencies Away

Despite scoring sale benefits of 5 to 8 percent in 2004, travel agencies in Mexico saw their overall gains plummet by as much as 50 percent because air commissions barely peaked 1 percent, explained Jorge Hernandez, president of the Mexican Association of Travel Agencies (AMAV for its Spanish name).

This situation –Mr. Hernandez commented- forced the closedown of some 200 travel agencies across the country. Now the number of such travel offices in the Aztec nation has dropped from 3,500 in 1998 to 2,000 this time up.

Regardless of last year’s positive outcomes, travel agencies fared pretty well all through 2004. However, sinking air commissions made a dent in the companies’ profitability.