A General Sales Agent (GSA) is a sales representative A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity for an airline An airline provides air transport services for passengers or freight, generally with a recognized operating certificate or license. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit in a specific country or region. Typically, the GSA is responsible for selling all products of the airline in its region which includes flight tickets and cargo Cargo is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-haul cargo transport space.

When an airline selects a GSA as its sales representative for a region, as opposed to opening its own branch, it generally does so for economic reasons or because the GSA has historical ties with travel and cargo agents which will be too time-consuming for the airline to build itself.

The GSA receives a commission The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold. This is a way for firms to solve the principal-agent problem, by attempting to realign employees interests with those of the firm of around 3% to 5% on all tickets and unit of cargo space sold in the region that it represents.

All costs related to running the GSA's business are the responsibility of the GSA including but not limited to insurance , rent , general office expenses and any travel within the country or region needed to promote /sell the product .

References

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Categories: Airline tickets | Travel agencies

 

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