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Travel agents threaten to strike on commission issue

Surabhi Agarwal
Posted online: Thursday , July 24, 2008 at 01:22 hrs
Updated On: Thursday , July 24, 2008 at 01:22 hrs


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Under pressure after the airlines' move to impose 0% commission regime for air tickets, travel agents across the country have threatened to go on a strike in case their demands are not met.

"Airlines can't wish the travel agents away by scrapping the 5% commission. We plan to go on strikes if they do not take their decision back," said Rajinder Rai, vice president, Travel Agents Association of India.

According to Rai, if the talks between the two fail (the two parties are meeting in New Delhi on Thursday to discuss the issue), one day strikes will be observed for select airlines which could be extended for more days or other players too.

"Air India has been complaining of incurring huge losses. If we refuse to sell their inventory for say one week, it will give them a big blow. We can squeeze an airline really hard, if we choose too," added Rai.

About 80-90% of the air tickets in India are sold through travel agents in the country and they form a major chunk of their revenues. "There is no way in which airlines can sell the whole inventory through their websites. Our country is not prepared for 0% commission as yet as imposed in the US," said Praveen Chugh, president, Travel Agents Federation of India.

Airlines had earlier sent letters to travel agents saying that the 5% commission they used to get for selling their tickets would be scrapped. Travel agents have been up and arms against the move even threatening to completely stop selling air tickets.

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» travel agents strike
Posted by VIVEK MOHAN on 2008-08-12 21:20:06.777636+05:30
the stike is truely right from the point of view of travel agent.it is the travel agent for a long time supports the airline travel industry .so the wrong decision of airlines should be withdrawn .without the support of travel agents the industry cannot survive .so hope a there will be a favourable decision from the part of airlines for the success of the industry .

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