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Travel agents to meet airlines over commission issue

Travel agents to meet airlines over commission issue
reliasoftindia.com

Jul 07, 2008

MUMBAI: Upset over air-carriers' decision to withdraw 5 per cent commission to travel agents from October, representatives of various travel bodies have decided to meet airline industry officials seeking a rethink on the issue.

This was decided at a joint meeting of five travel agents' bodies here on Monday.

"We all are unhappy with the decision as we feel it will be detrimental for the travel industry. So, we have charted out a joint strategy and propose to meet major airlines this week," Travel Agents Association of India's President C Venkateshwara Prasad told media after the meeting.

"We have a compelling case, and hope that the airlines will see reason."

Travel agents are concerned over the mounting losses of airlines in the wake of the rising air turbine fuel prices. "We think that both (airlines and travel agents) should survive," he said.

"Eighty-five per cent of airlines' business comes from travel agents. So we are for a win-win situation for both or at least a situation in which no party stands to lose."

The travel agents' representatives had also met Civil Aviation Minister Praful Patel over the issue. "We explained to him the consequences of the decision," he said.

Those attending the meeting were representatives of Travel Agents Association of India, IATA Agents' Association of India, Travel Agents Federation of India, Indian Association of Travel Operators and Association of Domestic Tour Operators of India.

economictimes.indiatimes.com




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As a travel agent in East Africa, I would like to tell the Indian market to accept this change as it is actually better for them economically.
We also had a similar scenario where some airlines gave us notice that they were removing their commissions as from 01APR08; and we of course resisted as hard as we could.
However we now find ourselves getting more value for the services we offer than before.
We are literally earning more now than when we relied on airline commissions.

It might be difficult in the beginning trying to get your travelling public to accept the change, but with time everything levels itself out.

They might have to contact sister travel agents associations in countries that are already coping with the no-commission scenario; and find out what their experiences were, and how they can apply them to their local situation.

You will see that it is not so bad!!!


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