ABSTRACT
Indo Airways is an Indonesian full-service airline. The traditional and online travel agents are contributing 68% of their domestic sales. Those travel agents gained commission from the percentage of the sold ticket’s basic fare. Indo Airways had reduced the travel agents’ commission in the domestic area since April 2017. However, agent contribution to total Indo Airways sales was not significant. This research investigated how the commission reduction affected the traditional travel agents’ sales in each region of the domestic area. The analysis was 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 used descriptive analysis based on time series data comparison. The study found that all sales in the different regions decreased, but significant for some region only.
