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Monday, Sep 13, 2004

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Travel agents' body forms TN chapter

Our Bureau

Chennai , Sept. 12

AIRLINES are entering into direct competition with travel agents by selling tickets to passengers at the same price as offered by the latter, according to Mr Praveen Chugh, Vice-President, Travel Agents Federation of India (TAFI).

Mr Chugh speaking at the inaugural press conference of the Tamil Nadu chapter of TAFI said that when travel agents sell tickets it is subject to service tax, but it was not so when purchased from the airline.

Speaking about the role of travel agents, he said that Indian market was different from the more developed markets such as the US, Canada and Europe. The major part of the travel in those markets is domestic and the payment is by credit cards. The penetration of plastic money in the country is still low, he said.

Mr N. Ramji,newly-elected Chairman of TAFI said that the Travel Agents Association of India (TAAI) and TAFI are working together to resolve various problems faced by the industry.

In Tamil Nadu, the associations will address problems of obtaining a Malaysian visa faced by agents. Recently, both the industry associations worked together to resolve the reduction of agency commission to 5 per cent from 7 per cent by the airlines, he said.

More Stories on : Airlines | Financial Services | Tamil Nadu

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