Indonesia Conference Directory

<< Back

Analysis of Commission Reduction Effects to the Travel Agent-s Sales in The Domestic Market
Hendra, Tengku Ezni Balqiah

Universitas Indonesia


Indo Airways is an Indonesian airline that sells full-service transportation for the customer which covers domestic and international routes. Their domestic sales are handled by traditional and online travel agents with contribution 68% of total domestic sales. Those travel agents get the percentage of commission from the basic fare of each ticket sold. Started from April 2017 Indo Airways has decided to reduce the travel agents- commission in the domestic area. However, on the other hand, agent contribution to total Indo Airways sales is significant. This research investigates how the commission reduction is affecting the traditional travel agents- sales in each region of the domestic area. The analysis will be based on the theory of sales promotion, marketing mix, and the cost leader approach and a hypothesis on approaching the analysis of the effect. The analysis of the secondary data will use descriptive analysis based on time series data comparison. The study finds that all sales in the different regions are decreased, but that decrements are significant for some region only.

Keywords: Airlines, Travel Agent, Commission Reduction, Sales Promotion

Topic: Marketing Management


Conference: The 4th Global Conference on Business, Management and Entrepreneurship (GCBME 2019)

Plain Format | Corresponding Author (Hendra )

Featured Events

<< Swipe >>
<< Swipe >>

Embed Logo

If your conference is listed in our system, please put our logo somewhere in your website. Simply copy-paste the HTML code below to your website (ask your web admin):

<a target="_blank" href=""><img src="" title="Ifory - Indonesia Conference Directory" width="150" height="" border="0"></a>

Site Stats