Tapering air-ticket commissions force agents to diversify

Kolkata: With the commission slab from airlines steadily decreasing, travel agents are looking to diversify their portfolio of services to increase margins.
There are around 2,900 agents in India under the International Air Transport Association (IATA) and around 50,000 non-IATA players. The industry is characterised by mom-and-pop travel agencies that depend on ticketing as their main revenue source.
But with 15 carriers deciding to go to a zero commission regime from October 2008, the agents have been badly hit. Commission from airlines has steadily fallen from a peak of 9% a few years back to 3%, and nil in the case of some carriers.
According to travel industry sources, the Directorate of Civil Aviation (DGCA) is slated to take a final decision on whether commission should be paid to agents and how much, on September 30, 2009.
Currently, 35-odd carriers work on a 5% commission model with agents. Three Indian carriers -- Air India, Kingfisher Airlines and Jet Airways -- offer 3%
28/09/09 Madhumita Mookerji/Daily News & Analysis

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Categories: Indian Aviation- In General Sep 2009