Your foreign trip may be hit if agents' demand for commission from airlines is not accepted
Your foreign trip may be hit if agents' demand for commission from airlines is not accepted
It's not just volcanic ash. Travel agents too may get in the way of your foreign trip, if they don't get their way.
Agents have threatened to go on strike if foreign airlines don't resume paying them commission.
Until 2008, airlines paid a 5 per cent commission to travel agents on every ticket sold. Agents are now demanding a commission between 5 and 9 per cent of the fare be paid to them.
Currently, 14 foreign carriers, mostly European and US airlines, do not pay any commission to travel agents. Domestic full service carriers and a few foreign airlines pay them a 3 per cent commission.
Besides, the agents charge passengers a flat fee.
| |
| Fare enough |
| Presently, travel agents charge a transaction fee to end consumers:
Tickets of low-cost carriers
Rs 350
Overseas economy class
Rs 750-1,200
Overseas business classu00a0
Rs 3,000
Overseas first classu00a0
Rs 7,000 |
|
The plan to go on strike was made after airline companies, turned down agents' plea and the Directorate General of Civil Aviation has issued an order for airlines to pay up a commission although no percentage has been fixed.
"We are the chief promoters of airlines and if they don't value us, we might have to take the extreme step of going on strike," said treasurer of Travel Agents' Association Of India Iqbal Mulla. "It is a nationwide demand by all agents."
"For Tuesday, we have scheduled a telephonic conference with airlines' representatives," said Mulla. "If things do not work out, we might have to take the extreme step rather than pass on the burden to the passenger."
Media reports have said that British Airways and German airline carrier, Lufthansa, have rejected the agents' plea for commission.
"Airlines will have to follow DGCA's guidelines. We have written individually to all airlines and we expect a positive response," said Pradip Lulla, owner of Cupid Travel & Tours, President of Travel Agents' Federation of India.
Lulla said that if the government wanted to bring in more tourists, it could only be done through such efforts. "If players like us are treated on par, we might bring in more revenue," he said.
