When airlines go beyond ticketing...
Offering complimentary hotel stays and visa processing services, airlines spread their wings into ancillary services. speaks to veterans of the travel industry to get an insight on this development.
Emirates recently offered a Dubai stopover package, whereby the First Class and Business Class passengers could avail a complimentary night’s stay at a five star hotel and receive a 36-hour UAE visa. The airline now offers ease in visa-processing services for Indian passport holders from 10 gateway cities, along with Visas of the World.
“I do not think we are affected at all by this development,” said Rajesh Sethi, MD, Carnation Travel Services. “As is it, we are experiencing cutthroat competition and are working on meagre profit margins not knowing as to who would be our competitor in the specific query. In order to capture maximum market share, we never take chances of making extra profits by quoting high and rather lose the booking.”
Regarding the complimentary hotel- stays, he commented, “Only the cost of the stay is accounted for in the airfare. Otherwise, it would be much less if taken without accommodation.”
Guldeep Singh Sahni, President, OTOAI, added, “While it is a step forward, it will be in the interest of airlines to have agents involved in visa facilitation, as they come in direct contact with customers. It will keep a check on unscrupulous elements.”
Regarding hotel and other services, Sahni believes that it would be appropriate if airlines manage their own part of business. “They better leave the tour part to be handled by a tour-operator. But in case, the connections are not good, providing a hotel to facilitate a passenger may add value. We have examples where airlines have stepped into tour operators’ shoes, resulting in operators losing interest in the destination. On the other hand, some airlines do have their holiday product which is in luxury segment, but in that case agents still remain compet- itive as airlines also offer the same rate which agents offer to the customer. In such cases, air- lines generally own the hotels,” Sahni said.
Jyoti Mayal, Chairperson, Airline Council and CoChairperson, Allied Services Council, TAAI, said, “This is a tactic to sell their destination, and with this, airlines have got their leverage. After a stage, ticketing is not everything. The real tussle is between agents and airlines. In point-to-point travel, the airline will benefit, but in a multiple destination travel, the agents will benefit.”
Jatinder Taneja, MD, Travel Spirit International said, “Airlines want to reach customers directly. However, travel agents must be present in between customers and airlines. Agents and operators aid in packaging the destinations, and often provide one stop solution to all.”
Sahni added that the only way to handle this would be to remain competitive and offer other products where we are competitive. “Provide personalised services to clients, and be informed enough to give maximum information to the client,” he added.