Travel agents to agitate against transaction fee model
03 Nov 2008
New Delhi: There would appear to be no end to the downhill run of the country's aviation and travel industry, with travel agents now up in arms against the withdrawal of the five per cent service commission and the introduction of a 'transaction fee' model by all domestic carriers.
Threatening a strike and suspension of ticket sales from this week, travel agents from bodies such as the Travel Agents Association of India (TAAI), Travel Agents Federation of India (TAFI) and IATA Agent Association of India, are now set to boycott airlines that have adopted the model.
Together these associations have over 5,000 active travel agents as members with an estimated one lakh or more sub-agents working with them as part of the network that sells travel and aviation to the general public. These agents now plan to oppose the 'transaction fee' system and say they will not enter into any contract with airlines.
India's three largest airlines, Air India, Jet Airways and Kingfisher Airlines, have decided to move away from the traditional commission system with effect from 1 November, choosing instead a transaction fee model to sell tickets through the travel agency route.
Media reports quote TAAI office bearers as saying there was confusion amongst travel agents about the commission issue anmd that the association was going to call a general body meeting that would take a final decision.
The acting president of TAFI has said that the association has asked its 1,000 odd members not to enter into any contract with airlines as they too intend to come up with a strategy soon.
Travel agents say that a number of international carriers such as Virgin, South African Airline, Scandinavian International Airline and Air France continue to offer the traditional five per cent commission and so they have decided to launch a collective protest against ''arbitrary commissions'' charged on tickets.
