Commission cut on foreign air fares irks travel agents

Subhadip Sircar

Mumbai, Jan 2: New Year has brought no cheers for the domestic travel industry. It is still in the grip of a downturn with inbound travel witnessing heavy cancellations due to the uncertain political climate. Now it is faced with another uncertainty.

Travel agencies, who act as a conduit between airline companies and the passengers are mulling options including legal recourse at the airline companies’ decision to cut commission on international tickets to seven per cent from nine.

The reduction, according to industry estimates, will result in savings of Rs 160 crore to the airline companies. But travel agents are questioning the veracity of the decision as the companies are offering heavy discounts to the tune of 50 per cent to the passengers.

The decision to cut the commission has been effected from January and has been implemented by Air-India and the other international carriers.

“We have decided to accept the new rate for now, but under protest. We have asked the Board of Airlines Representatives (BAR) India to meet us on the issue by next week. In case, they do not respond, we will look at other options”, said The Travel Agents Association of India (TAAI) president Jehangir Katgara.

The issue of the commission cut has been on the anvil since October last year and the two parties have been discussing the issue till last week. But subsequently, the airline companies have decided to go ahead with the reduction, he said.