TAM Transfers Agent Commissions to Customers

Clients of Brazilian travel agents booking flights on Brazilian airline TAM will get tickets that include a separate listing of the ticket price and travel agent compensation, which is changing from an airline-paid commission to a client-paid service fee.

The change will be implemented in January and is the result of an agreement signed by TAM and the Brazilian Association of Travel Agents on October 31. The agreement will first be implemented in the Brazilian market and subsequently internationally, TAM said.

TAM currently pays a commission that is required to be included as an integral part of the tariff.

Under the agreement, the agent compensation will amount to a service charge of 10 percent of the ticket value of $17.22, whichever is greater. The compensation will be levied on domestic tickets.

TAM flies to 47 destinations in Brazil, and its international operations include direct flights to New York, Miami, Paris, London, Milan, Buenos Aires, Santiago de Chile, Caracas and Montevideo.