Air India, Jet to levy fee on bookings through travel agents

Mumbai, July 18:

Booking an air ticket of Air India and Jet Airways through a travel agent just got costlier.

From July 16, the two airlines will charge a transaction fee on tickets booked through travel agents, even as they have cut the travel agent commission from three to one per cent.

Agents irked

The move has irked travel agents who are reeling under dwindling commissions. The ticketing business is unviable, say agents.

They pointed out they are now focussing more on low-cost carriers that give around six per cent commission on tickets. “At such times, when the aviation industry is going through a turbulent phase and there is high competition, this move will only backfire on the airline companies.

“In fact, the major beneficiaries of this situation will be the low-cost carriers, which are getting stronger day-by-day,” said Mr Iqbal Mulla, President, Travel Agents Association of India (TAAI).

Switch to low-cost

“Why should we promote Air India or Jet Airways? It is a survival issue for us. We would rather promote air ticket bookings on low-cost carriers now,” said a travel agent of Mumbai-based Cosmos Agencies.

Nearly 65 per cent of air ticket bookings is done through travel agents.

Fee list

According to the transaction fee list sent by Air India, the fee on domestic tickets for economy class is Rs 225 and business class Rs 325.

Whereas on international tickets (Dubai to Singapore), the transaction fee will be Rs 775 on economy class, Rs 1,300 on business class, and Rs 3,250 on first class.

The fee for distant destinations such as the US and Europe will be Rs 1,625 on economy class, Rs 3,250 on business class and Rs 6,500 on first class tickets.

Jet Airways too will levy similar fees.

The commission tussle between airlines and travel agents has been on for quite some time.

Earlier, the commission used to be nine per cent,before dropping to three per cent.

Travel agents fear that their volumes will go down.

“More than 50 per cent of travel agents across India will be affected by this. Smaller agents may go out of business,” said Mr Mulla.

TAAI has more than 2,700 members across India.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/article3654839.ece