After months of resorting to peaceful protest tactics like sending jalebis, samosas and flowers to airlines, travel agents across India scored a major win after the directorate general of civil aviation (DGCA) directed airlines to start paying them commission. Airlines had switched to a zero-commission regime in 2008.
“Firstly, since the zero commission system is loaded with a transaction fee, the consumer has to pay extra money. Secondly, an unscrupulous agent can charge an exorbitant amount as transaction fee from the customer. Thirdly, this system is giving rise to market dominance by some big agents, who are paid hefty amounts by the airlines in the name of productivity. This phenomenon, too, is not in the interest of the consumer as it reduces competition among agents,” the directive read.
As such, the DGCA has left it to the airlines and agents to fix the commission percentage. “It is entirely up to airlines to take a decision in this regard in consultation with agents. They must take into account various commercial factors such as market conditions, the cost of agents’ establishments, and statutory definition of ‘tariff’. But the commission cannot be replaced by transaction fees,” it said.
Rajji Rai, president, Travel Agents Association of India said, “We achieved results without violence and have created history for the world to follow.”
Comments