By Clyde Noel

Town Crier Correspondent

Travel agents absorbed another setback last week when all major U.S. airlines joined Delta Air Lines in eliminating commissions to agents.

The travel industry was expecting the expulsion after United, American, Northwest and Continental Airlines followed the Delta lead. The move will have lasting effects on where travel arrangements are made in the future.

“The airlines have been trying to eliminate independent travel agents for years because the airlines want to make your travel plans and make you stay where you don’t want to go,” said George Estill, co-owner of Estill International Travel Service in Los Altos. “We have been doing their work for the past three to four years and losing money doing it.”

For years, the airlines paid travel agents a $50 commission to write a ticket. Then, starting in 1995, they began slicing away the commissions until now they pay nothing even though agents still write about 75 percent of the airline tickets in United States.

“Every agency I know said they will have to increase the fees they charge consumers,” Estill said. “We charge different amounts depending on many variables and consumers don’t seem to complain.”

Estill said once you make your travel plans on the Internet you can’t change them. If you want a refund from the airlines you have to go to the airport.

Sonia Saraswat of Ligtelyn Travel of Los Altos said they charge a base fee of $75 to issue an airline ticket from the computer, but that can be adjusted case-by-case. When a package is issued that includes a hotel and car rental, then there is no charge for issuing the airline ticket.

“Fees might drive away customers who use the Internet and those who are price-sensitive, but we find people don’t care. They want service,” Saraswat said. “Once they get on the phone and are put on hold forever, they come in to see us.”

Saraswat said the European airlines are not affected and continue to pay commissions to agents, so they use those airlines whenever they can.

“European airlines like Lufthansa care more for people and their service level is higher than American air carriers,” Estill said. “We like British Airways for European travel because they have the biggest route structure.”

Although many travelers have flocked to the Internet to shop for tickets, Estill said the services offered by agencies make their fees worthwhile

“If an airline reduces the price you paid for a ticket, a travel agent will re-book at the lower price. Try to do that on the Internet,” Estill said.

All Horizons Travel of Los Altos charges a flat $30 service fee for airline tickets. Roy Jones, owner of All Horizons Travel with his wife Maureen, said the number of travel agencies has dropped considerably since airlines stopped paying commissions.

“I am surprised at the amount of business placed in the last week,” Estill said. “It appears the economy is improving and people want to travel again.”