ASTA is encouraging travel companies to pay travel advisors' commissions on future travel credits (FTC).
During this uncertain time, many travelers have opted for vouchers or FTCs to hold on to the dream of a canceled trip and secure a departure for a future one. However, many companies only pay once the client has traveled. ASTA believes that a commission policy that pays advisors when the product is sold is a better business practice.
"Analogous to a FTC, when you sell a new home, you pay the realtor's commission at closing, not when the new owner moves in; likewise, when you send a gift certificate to a loved one, you pay when you purchase it, not when the certificate is redeemed," said Mark Meader, ASTA senior vice president of industry affairs and education.
Continuing, he added, "It stands to reason that when a travel voucher or FTC is issued as the result of a sale made by a travel advisor-whether outright or in lieu of a refund the corresponding commission owed the advisor should be paid at the time the voucher is issued, not when the traveler takes the trip."
Since the supplier has already been compensated for the trip, advisors should receive their commission.
ASTA stated: "With the advisor having completed and closed the sale, collected all monies due and remitted such to the supplier, the advisor has fulfilled all of her or his duties with respect to the transaction. Compensating the advisor for that success is the logical follow-on step that should occur at that point without delay."
President and CEO Zane Kerby noted that commission should be paid when the voucher is issued.
"ASTA believes that a travel voucher represents a promise of a seat on an airplane, a cabin on a cruise ship, a room in a hotel or a place on a tour," said Kerby. "Accordingly, the agreed compensation or commission due the agency for closing the sale should be paid when that voucher is issued."
ASTA went on to say that it "firmly believes all commissions due for any products sold by the agency-voucher, FTC or otherwise-should be payable upon final and full payment by the traveler, and ideally within 14 days."
The association is calling on the suppliers to "do the right thing" and compensate advisors for making the sale.
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