Continental Drops Online Commissions

Continental Airlines Inc. last month became the latest major U.S. airline to eliminate commissions paid to online travel agencies. Northwest stopped paying commissions earlier this year. "To assume leisure travelers will find a Northwest or Continental fare by going on their Web sites rather than finding an alternative flight on another airline through an online agency is a big risk to take today," says Phil Wright, president and CEO of research firm PhoCusWright. He says online agencies represent about half of major U.S. airlines' Internet revenue.