Travel agents to down shutters today on commission woes

Bang in the middle of the peak summer travel season, more than 2,600 travel agents across the country will down their shutters on Tuesday to press for a 5% commission for the airline tickets they sell through their travel agencies. The travel agents say the commission was their right which was being denied.The Travel Agents of Association (TAAI) has approached the Aviation Ministry for what they say ‘right for commission’ from airlines, but their requests and representations have gone unheeded.“How are we suppose to do business if we are not paid our legitimate commission for providing our services (booking air-ticket)? If we shut shops for a day maybe the government and airlines will realise how important our services are,” said Rajji Rai, advisor to TAAI and chairperson of Swift Travel International.Earlier foreign airlines had reduced their commission from 9% per ticket to mere 1% which had severely affected the business of travel agents.  Travel agents had started charging a transaction fee on tickets ranging between `350 and `10,000 per ticket. But earlier in January the Supreme Court banned agents and airlines from charging the transaction fee.Agents pointed out that while in Australia, Japan and even Nepal and Sri Lanka airlines offer commission to travel agents, in India they have stopped paying tour operators as the government has the not helped the industry on this.In 2008 and 2009, travel agents stopped ticketing for Jet Airways and Singapore Airlines as these airlines refused to pay commission to the travel agents. Around 16 airlines, including British Airways, Lufthansa Airlines, Air Canada, Swiss International Airlines and Singapore Airlines (SIA), don’t pay commission to airlines after moving to zero-commission regime in 2008. Many travel agents then also stopped ticketing for these airlines as well. But the collective ‘boycott’ brought them under the lens of the Competition Commission of India. In October 2011, CCI had imposed a fine of `1 lakh each on three travel associations — Travel Agents Federation of India, TAAI and IATA Agents Association of India (IAAI) — for violating provisions of the Competition Act.Through their one-day stir they are also seeking transparent airfares.  “Consolidated airfares should be charged with all the basic essential necessities of the consumer like tea, coffee, insurance, change of dates etc. met,” points out a TAAI member
http://newindianexpress.com/business/news/Travel-agents-to-down-shutters-today-on-commission-woes/2013/05/07/article1578357.ece