KLM to discontinue agent commission in North Europe

KLM Royal Dutch Airlines has said it will no longer pay commission to travel agents in Norway, Sweden and Denmark effective July 1, 2003. The measure also applies for tickets issued by KLM's partner Northwest Airlines. Until July 1, KLM will continue to pay travel agents the usual 7% commission for every ticket sold. The discontinuation of agent commission in North Europe reflects KLM's strategy to reduce distribution costs and ensure greater transparency for customers.

The new system will see KLM charging net ticket prices in Norway, Sweden and Denmark. Travel agents may then charge their customers a service fee  on top of the ticket price. KLM believes this will offer customers greater transparency regarding ticket-pricing structure, because the relationship between the ticket price and the value added by the travel agent will be clearer.

In Norway, Sweden and Denmark KLM will charge the same net ticket prices via its direct sales channels, the KLM Call Center and its website. KLM charges customers in these countries a service fee for reservations made via these channels.

These service fees are:

Customers who opt for an e-ticket will get an EUR 5.50 discount on the above fees.

KLM has said that travel agents have been notified of these service fees and can adjust their own fees accordingly.