Agents to stop selling Jet Airways' tickets
Published: 02 Dec 2008
Over 2,500 travel companies, including IATA travel agents and online travel agencies (OTAs) in India have reportedly decided against selling Jet Airways' tickets from December 4.
According to local media, the OTAs include Makemytrip, Cleartrip, Yatra and Ezeego.
As per the information available, Jet earns revenues of US$3.62 million every day, out of which US$3.24 is generated by travel agents (online and offline).
Financial daily The Business Standard said the decision was taken at a meeting of the six associations — Travel Agents Federation of India (TAFI), Travel Agents Association of India (TAAI), IATA Agents Association of India (IAAI), Indian Association of Tour Operators (IATO), Association of Domestic Tour Operators in India (ADTOI) and Enterprising Travel Association of India (ETAA) — which cumulatively account for nearly all of the 2,800 IATA agencies, apart from numerous travel portals like Makemytrip and Cleartrip.
The agents have decided not to sell Jet Airways tickets in a bid to compel the airline to pay them five percent commission, which was withdrawn from November 1. Apart from Jet, Air India and Kingfisher have also stopped paying commission to travel agents.
"We have decided to stop selling Jet tickets from December 4. This was decided at today's meeting, where more than 60 percent of the entire travel industry was represented. Although three carriers have stopped paying us commission, we have decided to go ahead with Jet because it is the market leader and it should be the first to make a move," said Ajay Prakash, General Secretary, TAFI.
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sumit8653 said on 2 Dec 08:
The agents at this stage should not stop issuing tickets for Jet Airways or other carriers like Kingfisher/Air India. Doing a deep market study the move made by airlines can be due to following reasons:-
1. Cutting the ratio between the fare and commission percentage.
2. Offering/retailing these discounts directly through own channels to Customers.
The result of this move by agents strengthens the positions of carrier and will result them entering into direct market through their selling platforms, through dedicted agents. The airlines can also enter into direct mergers with partners/new channels partners and run their own set ups. The otas /travel agents selling proportion analysis is higher on the side of negotiated contracts for a market which will highly affect the market of smaller agent with no direct contract with a carrier. This will subsequently add more profitability to agent having contracts with the airline. Hence, will result in downfall of individuals market who do not wish sell tickets on published fares for a carrier as of now.
Regards,
Sumit kakkar
sumit8653@gmail.com