Travel agents want a return to commission structure

Shanghai News.Net
Thursday 20th November, 2008

Travel agents associations in India have called on air operators to withdraw the transaction fee system they introduced on Nov 1st to reinstate the earlier five percent travel agents commission.

The Travel Agents Association of India, which earlier agreed to replace the commission regime with the transaction fee, said it would go its own way charging commission on passengers.

TAAI has asked agents associated with it not to reach any agreements with airlines over transaction fees.

Explaining the difficulties of following the new system, the TAAI said it was difficult to make the system work as the airlines did not have a uniform policy.

According to airline officials, all the 12 carriers that have scrapped the five percent commission have not introduced the transaction fee system.

While the Dubai-based Emirates will start charging transaction fees from April 2009, FinAir and Eithad will do so from Jan 1st next year.

However, British Airways, Cathay Pacific and a few other foreign airlines continue to pay commissions to travel agents.

About 85 percent of airline bookings in India are done through travel agents.

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