The Hindu Business Line : Travel agents put Air Deccan's credit card offer on hold

AIR Deccan has hit its first air pocket with the travel agents taking a decision to keep in abeyance the co-branded credit card offer with ICICI till the issue of commission to the agents is resolved.

"We don't want to jump at the offer just because we get some days of credit," a senior member of TAFI (Travel Agents' Federation of India) told Business Line.

The bone of contention between Air Deccan and the travel agents is the 5-per cent transaction fee, which the airline levies on passengers over and above the basic fare whenever a ticket is booked through the agents. Passengers who book their tickets directly through the Internet are exempted from paying the transaction fee.

Though the transaction fee is given to the travel agents in the form of commission, agents say the fee should be included in the basic fare and not shown separately in the ticket. The travel agents claim that by showing the transaction fee separately from the basic fare in the ticket, the airline is in fact trying to lure the passengers away from the travel agents.

"It sort of acts as a disincentive for the passenger to book his tickets through the travel agent. Why should we then promote the airline," the TAFI member said.

Travel agents also fear that if they accept the credit card offer, it will set a precedent and they may have to accept similar offers from other airlines.

Interestingly, the yet-to-be launched Kingfisher Air has announced that it will provide travel agents 5 per cent commission for selling its tickets and the commission will be included into the basic fare.

"All deals and pricing schemes will be done in a manner that fares are available uniformly across channels and travel trade partners need not face any discriminatory pricing. Passengers will therefore land up paying the same price irrespective of whether the booking has been done via the Internet or through an agent," a statement from Kingfisher Air said.

But Air Deccan's Managing Director, Capt G.R. Gopinath, claimed that 60 travel agents have already accepted the offer. "Nobody is asking them to deposit any money with us and they even get 40 days' credit," Capt Gopinath said. He said the transaction fee is in fact an incentive for the travel agent to promote the airline.

Travel agents also claim that as the fare structure is based on dynamic pricing, there are chances of a customer cancelling the ticket if he does not get the fare he wants. But the cancellation charges have to be borne by the travel agent. "Low cost airlines in Europe and the US don't levy cancellation charges if it is done within 24 hours," the TAFI member said. They also provide 5-per cent commission to the travel agents but the commission is built into the basic fare.

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