Flight sites up in the air

Nah, say industry observers.

"I think we're going to see a move away from paying straight commission," says Kate Rice, analyst with PhoCusWright, a research company specializing in online travel. "We'll see online sites negotiating with airlines to get Net fares or specially priced fares, which they can add a profit to and still offer at a very attractive price."

Rice doesn't believe that customers will pay service fees. She predicts, however, that sites will offer perks, such as discounts and specially targeted travel packages, in exchange for an annual fee.

Travelocity, whichrecently posted its first quarterly profit, apparently isn't too worried about airline commissions. Advertising revenue and nonair offerings, such as hotels, cars, and cruises, total nearly half of the company's earnings. "It's too early to tell whether [cutting commissions] will become a trend," says Travelocity spokesman Al Comeaux.

Christina Kozloff, Expedia product manager, agrees. "Only one airline has cut commissions. Expedia has reached an agreement with Northwest, so there will be no change, visible or invisible, to the consumer."