Brazil’s Gol Cuts Travel Agents Commission to 6%

Brazilian Airline Gol announced today that beginning January 1st, commissions paid to travel agents on Gol ticket sales will be reduced to 7% for domestic flights and 6% for international flights.

The decision is part of the Gol’s overall cost reduction plan which is expected to reduce operating costs by 7% in 2007. The company says it expects annual cost savings of about US$ 50 million in travel agency commissions in 2007.

"Reducing our costs will allow the company to offer even lower airfares and continue to popularize air transportation," says Gol’s Vice-president of Marketing and Services, Tarcí­sio Gargioni.

Gol has also released preliminary passenger statistics for November. According to this information, system-wide passenger traffic  increased 43% and capacity increased 55% year-over-year. Gol’s system load factor for November was 67%.

Domestic passenger traffic for November increased 36% and capacity increased 46%. Gol’s domestic load factor for November was 67%. International passenger traffic for the same month increased 146% and capacity increased 200%. International load factor was 61%. Average fares were reduced approximately 7% when compared to November 2005.

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  • Show Comments (3)

  • Rick

    I agree, and with Gol their cheapest fares are online anyway even if your travel agent does it. Plus they wonÀ‚´t take foreign credit cards for those tickets, only Brazilian.

  • avocado

    Rick

    I think it’s pretty safe t buy direct from an airline like Gol who are very stable financially. Transbrasil were obviously in trouble, so buying their tickets was always a risk. As for travelling abroad I would always take travel insurance to guard against lost/stolen tickets.

  • Rick

    In Brazil, never buy a ticket, domestic or foreign, online or direct from the carrier. Use a travel agent. Many who bought their Transbrasil tickets through travel agents got their money back while my friends who bought online with a credit card are still waiting for reimbursement. If you buy through an agent and have your tickets stolen travelling in another country, your Brazilian travel agent will help you. The carrier probably will not. I donÀ‚´t think this action of GOL will hurt the passenger because of their marketing practices.

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