Travel agent says Air Transat is dropping base fares to as low as $2 to avoid commissions

Can you fly round-trip from Toronto to Lisbon for as little as $2? No, but it might seem like you could if it weren't for taxes, fees and other surcharges on an Air Transat booking that CBC Toronto reviewed for next month. That's because the base fare for the trip is $2, but the carrier's air transportation charge is $600, and other taxes and fees bring the all-inclusive price up to $719.85. A Greater Toronto Area travel agency flagged the toonie base fare after booking similar round-trip flights to the same destination for clients through Air Transat with a base fare of $3.50 and an all-in price of $723.59. Jeff Verman, CEO of Plus Travel Group, said he believes airlines are dropping base fares and raising carrier surcharges to avoid paying commissions to travel agents. "This is a deliberate move to pay us less," Verman said. "[Our] service fee alone does not make us profitable. Commission is what we need to be profitable each transaction." Unlike many travel agencies, Verman's survived the COVID-19 pandemic. But he said his company is about half the size it was before — and it can't afford to be operating at a loss on bookings, like making a commission of 18 cents on a $3.50 base fare. Travel agents get commission only on base fares, and with Air Transat, that commission is 5%.<br/>