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Travel trade across associations speaks up against impending zero commission regime

Indian travel trade fraternity across all associations met at the Indian Merchant Chambers in Mumbai on July 21 to voice their views jointly on the issue of zero commissions. A gathering of about 300 agents across associations such as Travel Agents Association of India (TAAI), Travel Agents Federation of India (TAFI), IATA Agents Association of India (IAAI), Indian Association of Tour Operators (IATO) pledged support against zero commissions by sporting black T-shirts with the slogan ‘No to Zero.’ The travel trade fraternity has come together under a united forum called Travel Agents Fraternity of India. Under the common theme of ‘One Voice, One Industry, One Cause’ all the agents present at the meet ensured that the heads of the associations accept that they are united in this cause and will not accept the zero per cent commissions under any circumstances. The zero commission regime will be effective from October 1 this year. The heads of associations also met with Air India on July 24, 2008 in New Delhi to discuss the issue of zero commissions to find a strategic solution and fight for their right.

Initiating the discussion at the protest meet at IMC in Mumbai, Marzban Antia, Managing Director, Avesta Travel & Tours said, “We are not afraid of the airlines because now they need us more than before. As per records the airlines register Rs 33,000 crore turnover, 85 per cent of which is because of travel agents. Agents should be firm and not allow airlines to dictate their terms on our business. We will accept a solution which is viable to both parties.” Adding to it, Zakhir Ahmed, immediate past President, TAFI mentioned, “We need to explain to the airlines what the fraternity means and that India’s travel trade is not ready for zero per cent commission regime. In addition to the opinions voiced by the 300 members present here, we need complete support from at least 50 per cent of the fraternity, which consists of around 3,000 IATA-accredited travel agents across India.” Various suggestions came up during the meet from the members like undertaking a 15-day tour across India to integrate the travel trade for the cause and for a joint effort to invest in a portal that will help them keep a check on the zero commission regime and also keep all the associations united.

Supporting the cause, Praveen Chugh, President, TAFI sent his message to TAFI members which was read out by Ajay Prakash, National General Secretary, TAFI, “I promise, no matter what happens, we will make sure that the livelihood of all agents is secured. The agents will earn more than the current income but should also be ready for any kind of action. We are looking for a reasonable compensation for selling 85 per cent business of the airlines.”

Shedding light on the international market, Nalin Kapadia, Managing Director, Stop and Shop Tours and Travels said, “Travel agents play a major role in the industry. US travel agents are now less in number, use advanced technology, work from home and are not satisfied. They mostly work for the corporate sector. We cannot compare the Indian market with the US market.” Echoing the same sentiment Hari Devnani, CEO, ANZ Travel Services said, “It is not a global issue. We cannot and should not compare two different economic zones. In the US, 90 per cent of money is transacted through credit cards whereas in India not even nine per cent of the population makes use of credit cards.”

Talking about the zero commission regime in Australia during 2005-06, Ajay Prakash, CEO, Nomad Travels said, “Zero commission was introduced in Australia in 1998. Talks went on for four years. Qantas Airways agreed with Australian Federation of Travel Agents (AFTA) to provide USD 6, 00,000 on agent training and consumer awareness. They made the commitment to agents that they will not go out of business and made an effort to spread awareness. Nothing of that sort is being done in India.” Toward the end of the meeting, Travel Agents Fraternity of India lit candles and took a pledge to be united against zero commission regime by voicing their protest.

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