Globe Spanners, a local travel agency, is facing a financial "crunch." In September, 1997, most airlines reduced the commissions they pay travel agencies to book airline tickets from ten percent to eight percent.Having initially capped commissions at $25 for a one way ticket and $50 for a round trip in February of 1995, the combination of both changes had reduced Globe Spanners' compensation to less than six percent, below their operating costs for booking air travel.Is this a problem amenable to management science analysis?

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The Answer of Globe Spanners, a local travel agency, is facing a financial "crunch." In September, 1997, most airlines reduced the commissions they pay travel agencies to book airline tickets from ten percent to eight percent.Having initially capped commissions at $25 for a one way ticket and $50 for a round trip in February of 1995, the combination of both changes had reduced Globe Spanners' compensation to less than six percent, below their operating costs for booking air travel.Is this a problem amenable to management science analysis?

Globe Spanners, a Local Travel Agency, Is Facing a Financial