2% commission from two airlines
In conversation with , Jyoti Mayal says TAAI will continue to fight against opaque airfare practices and seek its rightful commission from the airlines.
From June 1 onwards, SpiceJet and GoAir will give commission to the travel agents in India. Throwing more light on this recent development, Jyoti Mayal, Chairman-Airline Council, TAAI says, “TAAI Airline Council has collectively worked for this. We were talking to GoAir and Spice Jet for about four months. IndiGo had started giving commissions in January and was the first LCC to take this step. SpiceJet and GoAir are joining this bandwagon now. We have received a confirmation from them that effective June 1, 2014, both these airlines will remunerate the travel agents two per cent, which shall be inbuilt in the airfare and the pay- ments against the same shall be credited back. We are working on a cut and pay system to be implemented.”
The TAAI Airline Council had demanded for five per cent
Contd. from page 1 commission, but the two LCCs have currently said at least two per cent shall be paid to the travel agents. “Going forward, the association will push them to give us more than two per cent. The association will also talk to Air India and Jet Airways to give more commission, which is currently just one per cent,” Mayal adds.
Another issue that TAAI is aiming to work towards is web parity. “The TAAI Airline Council is talking to IndiGo, SpiceJet and GoAir. We are asking them not to go to consumer directly, and offer them cheaper fares. They should realise that agents give them majority of their business,” she states. Mayal feels that these three airlines should come on the credit card platform. “IndiGo has already started the credit card system, but we are asking for more remuneration. They should not charge extra from travel agents for using credit cards. SpiceJet is also coming up with a similar system, and we are pushing GoAir to do the same,” she reveals.
She says, “I do not understand why international airlines have this perception that they can sideline the agents. If they could do this, they would not cut their own staff, and give huge targets to agents and consolidators to fill their flights. Airlines need to understand that they are cornering travel agents. They give PLBs almost after 14 months. For 14 months, the travel agents are blocking money. Are we working as financers or their partners? Then, they want cash up front. Why does Lufthansa want to have cash payments and no commissions here in India, while in their own country, they give credit. Why can’t they implement this in their own country first.”
Mayal says, “The aim is to provide all agents a level playing field. We are professionals who charge for providing services to our clients and thus, should maintain a united front.”