| | Consumer Goods and Services | | |
Author: Fernando Flores Katos |
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Latin America’s independent travel agencies will soon face a day of reckoning. Airlines, pressured by higher oil prices, weaker economies and frightened travelers, want to eliminate commissions. Without fees from airlines, agencies will be forced to charge travelers for the services they provide. If that happens, Latin America’s frugal travelers will migrate to larger agencies, since economies of scale will allow them to offer lower fees. Some travelers may opt to deal directly with airlines or use one of the handfuls of existing regional online travel sites.
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