TRAVEL AGENTS FAIL TO FORCE DELTA TO CHANGE
By FAYE RICE

(FORTUNE Magazine) – Travel agents vowed to pull the wings off Delta Air Lines and its CEO, Ron Allen, after the airline put a $50 cap on commissions for domestic flights.

But talk of doing dirt to Delta--and the six U.S. airlines that quickly followed its lead--is just that. Despite conceding some back-door deals, the airlines have made the cap stick.

Agents are focusing now on survival. Says Jeanne Epping, president of the 25,000-member American Society of Travel Agents: "Many of us have lost 40% to 70% of our incomes, so we can't spend time issuing false reservations for Delta. We must reengineer our businesses."

Giant travel consortiums like American Express are slashing expenses, charging $25 for small transactions and renegotiating corporate contracts. "Our revenue stream has been altered. We have to get more from our clients now," says Robert Greenfield, a regional general manager for Amex's $10.7 billion travel business.

Some smaller agencies are waiving fees, for now. "I just can't charge my customers," says Sheila Hyman, president of Tanforan Travel in San Bruno, California. "I did a huge mailing and asked for referrals."

To recover some lost revenue, Hyman is aggressively pushing cruises, trains, and tours. Carnival Cruise Lines, Amtrak, and several big tour operators increased agents' commissions days after airlines capped them.

- F.R.