Travel agents oppose dual pricing by AI

Mumbai: Travel agents and airlines are at loggerheads again. Agents are protesting national carrier Air India's move to offer cheaper fares exclusively on its website.
Travel agents associations say this practice amounts to "dual pricing'' and is hurting their business, and have approached members of Parliament and state legislators to take up their demand of restoring five percent commission from airlines and price parity.
Dual pricing refers to sale of cheaper tickets at fares through airline's website. These fares are not available on any other global distribution channel used by the agents. Currently, Air India is selling tickets priced about 5-10 percent lower than the fares available on global distribution systems.
Travel agents form mainstay of sales and distribution networks of legacy airlines with over 70 percent of business coming from them. Air India has been pushing to increase its web sales which currently account for about five-seven percent of total sales. Increasing sales through the company website also reduces its distribution costs but this has pit the the airline against the agents.
30/08/12 Aneesh Phadnis/Business Standard

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Categories: Air India Aug 2012