Lufthansa Presents New System Of Travel Agency Remuneration

Introduction on 1 January 2002
On 1 January 2002 Lufthansa is introducing a new system of remuneration for travel agencies in Germany based on flat fees. In contrast to the previous system, travel agencies will no longer receive a percentage commission, but a fixed euro amount per trip. This will vary according to the destination area and the booking class (for details see table below). 
Lufthansa`s entire system of travel agency remuneration has to be revised in order to implement the catalogue of directives issued by the EU Commission on the creation of incentive programmes for travel agents.
Josef Bogdanski, Senior Vice President Sales Germany at Lufthansa German Airlines, said in Frankfurt: “The new Lufthansa flat fee ensures our agency remuneration system is EU-compliant. On average, travel agencies will not be worse off in comparison to the present system of basic remuneration. The decision to introduce a sliding scale for flat fees was dictated by competitive and market requirements.”


Commission per trip:

Ticket / Ticket on departure (TOD) / Prepaid ticket advice (PTA)

Intra-German / €16 / €8 / €8—
IATA-Europe / €40 / €20 / €10—
Intercontinental / €150 / €60 / €30


The above mentioned commissions refer to the following rates:

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1. First /Business Class plus fully flexible Economy fares (Booking class Y)
2. Economy Class without fully flexible Economy fares (Booking class Y) and without Economy Specials (Booking class Q/V/W for intra-German travel, otherwise V/W)
3. Economy Specials (Booking class Q/V/W for intra-German travel, otherwise V/W)


* For etix® (electronic tickets) to destinations outside Germany the travel agency will receive an incentive bonus of €5.

* For direct bookings via online booking tools in the CRS (Computer Reservations System), a deduction of €5 will be made for intra-German flights to IATA/European destinations, and €15 for intercontinental flights.
* In future a standard flat fee of €15, or €5 in the case of unaccompanied minors (UMs), will be paid for all Miscellaneous Charge Orders (MCOs).

* No flat fee will be paid for net prices such as corporate net rates, Pay-as-you-fly fares, tour operator and last-minute prices.

The new Lufthansa flat fee was discussed in several critical but constructive rounds of talks between Lufthansa and the German Association of Travel Agents and Tour Operators (DRV). Representing the DRV were Klaus Laepple (President), Ralf Osken (Vice President Division B) and Hans Doldi (Vice President Division A). Lufthansa was represented by Josef Bogdanski (Senior Vice President Sales Germany), Christoph Wilhelm (Key Account Manager Travel Agency Chains), Anke Förster (Project Manager) und Uwe Wriedt (General Manager Sales Services and Business Associations).


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