Saturday, October 27, 2018

Travel agents ask Air India to review ticket distribution policy

Mumbai: Travel agents are objecting to Air India's decision to select a single global distribution system (GDS) service provider as it will hurt their revenue. Agents earn incentives from service providers and the airline's decision will hit them hard.

Last week the national carrier selected Travelport as its exclusive partner for ticket distribution in India as part of its efforts to cut down costs. While Air India distributes its tickets within India through three service providers at present, it will offer ticket inventory only on Travelport from January 2020. Similarly, Jet Airways too has revised its ticket distribution agreements selecting two service providers – Traveport and Sabre.

Unlike low-cost airlines, carriers like Air India and Jet Airways rely on GDS providers like Amadeus, Travelport and Sabre for distribution in India and abroad. A GDS collects segment fee for every booking made on its system from an airline and shares a portion of it with travel agents. Thus it adds to the cost of an airline but is a revenue source for agents. Neither Air India not Jet have revised their agreement with Amadeus which has the largest share of ticket sales in India.
26/10/18 Aneesh Phadnis/Business Standard
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