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Offline air travel agents to shut shop on Thursday

Shubhra Tandon

Mumbai, Aug. 11 It might be prudent to make one’s airline bookings and enquiries before August 14.

Around 3,000 offline travel agents across India will shut shop on Thursday as a mark of protest against the airlines’ decision to implement ‘zero commission’, it was decided at a meeting of three travel agents’ associations on Monday.

However, the online travel agents told Business Line that such a decision has not been communicated to them yet.

Mr Deep Kalra, CEO of Makemytrip.com, said after Monday’s meeting: “We would take a call once more clarity is had from the associations. However, we believe that the airlines will take a decision which is amicable for both agents as well as them.” Makemytrip.com is part of Travel Agents Federation of India (TAFI).

The spokesperson of Ezeego1.com said that though such strike calls are voluntary, the portal generally goes with the industry as “it is in everyone’s favour.”

Ezeego, the online portal of Cox and Kings is a part of TAFI and Travel Agents Association of India (TAAI).

Ms Shubhada V. Joshi, Secretary General of TAAI said, “We would be meeting the airlines on August 14 before we decide our further strategy and we are hopeful that the airlines will not turn us down. However, we will not book any tickets on that day as we want our customers also to know how difficult it will be for them to book tickets without us.”

Mr Praveen Chugh, President of Travel Agents Federation of India, said, “We would like to see how the airlines handle all the enquiries and bookings without us. We operate from remote areas like Sholapur, Ghaziabad, Haridwar, Rishikesh, etc., where the airlines do not have their counters.”

Commission battle

Monday’s meeting was a fallout of the decision taken by Indian and some international carriers earlier last month that the commissions of travel agents will be stopped from October 1, 2008. It was reduced to 5 per cent from seven per cent earlier some time ago. However, both sides met at a later date when it was decided that the deadline would be pushed by a month to November 1.

The airlines had said that this was in line with the international practice and will be a part of their cost cutting measures. In many overseas markets the agents charge their customers a transaction fee for their services, and no commissions are paid by the airlines.

Ernst and Young had earlier told Business Line that if the ‘zero commission’ regime is implemented, the airline industry in India could save around Rs 1,000-1,500 crore in 2008-2009.

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