New fee similar to earlier commission

The transaction fee charged by travel agents isn't very different from the commissions charged by them before November 1.
The new fee system works much the same way.
The only difference is that the amount may differ from previously charged 5% commission.
Explaining the similarity between the transaction fee, which is being levied from November 1, and commission, Rajji Rai, president, Travel Agents Association of India (TAAI), said, "To maintain the price parity between the fares we charge and the airlines, we have asked airlines to levy a fixed transaction fee, but we have the option to charge any amount of transaction fee."
Rai said even for the 5% commission, travel agents could use their own discretion to pass on the entire or part of their discount benefit that the airlines offered them.
"We have sent a letter of agreement to all agents and if they wish to sign on they would on the net which would have manual code - OC. This would allow them to charge any amount of fee. It could be Rs 100, or may even be Rs 200," Rai said.
14/11/08 Praveena Sharma/ DNA MONEY/Sify

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Categories: Indian Aviation- In General Nov 2008