Mumbai: Ongoing mass cancellations of flights and the Airport Authority of India's decision to put SpiceJet on a cash-and-carry mode have made online travel agencies nervous.
Full service airlines which are members of International Air Transport Association give seven day credit to travel agents to make payments for ticket sales, whereas low cost airlines, including SpiceJet, collect advance amounts from agents. In turn agents are allowed to sell tickets of a higher sum than their deposits.
The deposits vary from season to season and airlines typically collect higher deposits during flash sales. This enables agents to increase sales. Over the last few months, online travel portals are limiting the deposits placed with the airline and recent developments have added to their concern.
SpiceJet has a market share of 17.3% in October and 18.5% in January-October period.
04/12/14 Aneesh Phadnis/Business Standard
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Full service airlines which are members of International Air Transport Association give seven day credit to travel agents to make payments for ticket sales, whereas low cost airlines, including SpiceJet, collect advance amounts from agents. In turn agents are allowed to sell tickets of a higher sum than their deposits.
The deposits vary from season to season and airlines typically collect higher deposits during flash sales. This enables agents to increase sales. Over the last few months, online travel portals are limiting the deposits placed with the airline and recent developments have added to their concern.
SpiceJet has a market share of 17.3% in October and 18.5% in January-October period.
04/12/14 Aneesh Phadnis/Business Standard
