KLM to introduce new commission policy for Dutch Travel Agents

KLM Royal Dutch Airlines is to introduce a new commission policy for travel agents in the Netherlands on January 1, 2005. From then on, KLM will offer consumers reduced fares excluding commission for travel agents. It will be up to travel agents to charge their customers a service fee. This will give consumers a clear indication of what they are paying for services rendered by travel agents.

KLM will continue to pay travel agents commission for their efforts to sell tickets. Agreements regarding this commission will be laid down in a contract between KLM and the travel agent. KLM will be discussing the implementation of this new commission policy with various representative bodies during the coming months. The new policy is in line with KLM's efforts to devise a commission policy that reflects current market circumstances. KLM has already introduced a similar policy in Scandinavia and England.

Introduction of the new policy will do away with the current commission of EUR 34 per ticket paid to travel agents. Travel agents can decide for themselves what fee they wish to charge for their services. Passengers who buy tickets directly from KLM will pay booking costs for each ticket as of January 1, 2005. These costs will vary depending on the booking channel used. The more efficient the booking channel, the lower the costs. Booking costs will be as follows: via the KLM website - EUR 10 per ticket; via Telephone Reservations - EUR 25 per ticket to European destination, and EUR 35 per ticket to intercontinental destinations; via  KLM Ticket Offices - EUR 45 per ticket. The current EUR 25 fee for booking via Telephone Reservations will be discontinued as of January 1, 2005.