The Hindu Business Line : Travel agents protest against zero commission

Mumbai, July 21 The travel agents in India announced on Monday that they are against the domestic and international airlines’ decision to take the commission level to zero for the agents from October 1, 2008.

Around 300 travel agents gathered in Mumbai wearing black T-shirts and shouting slogans of ‘No To Zero’ as a mark of protest against the decision. The agents questioned the airlines’ argument that it was a part of their (airlines’) cost cutting measures.

“How much of a difference will our 5 per cent commission make to these airlines who have mismanaged their businesses? They themselves projected a false tourism boom which has seen a natural death and now they are finding it difficult to fill their flights because of the overcapacity in the market. Why should we suffer for this?,” asked Mr Marzban Antia, Managing Director of Mumbai-based Avesta Travel & Tours Pvt. Ltd, an International Air Transport Association (IATA) recognised agency.

The travel agents under all the five associations namely Travel Agents Association of India, Travel Agents Federation of India, Indian Association of Tour Operators, Association of Inbound Tour Operators, IATA Agents Association of India have come together to raise their objections.

Mr Antia said that the airlines operating out of India have a total turnover of Rs 33,000 crore and 85 per cent of this is contributed by the bookings done by travel agents. Agents are also demanding that their commissions revert to the earlier levels of 9 per cent and they should be paid on the entire fare and not just the basic fare. Currently, the fuel surcharge is not in the commission purview.

“It is not a tax and goes straight to the airlines. We collect this charge on their behalf from the consumer and give it to them, this is a service offered by us to the airline and we get nothing, we want this amended,” said Mr Ajay Prakash, Chief Executive of Nomad Travels.

The agents also disagreed with the arguments of the airlines that globally the travel agents’ commission has been brought down to zero. They said that no two economic zones can be compared and placed several examples of how other foreign carriers ensured an amicable environment for the travel agents in their countries before withdrawing commissions.

However, the matter is still open for discussion. The representatives of the travel agents will be meeting Indian carriers in Delhi on July 24 for further negotiations. “If the talks fail then we will have no option but to stop the sale of airline tickets as an extreme measure,” said Mr Prakash.

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