Thursday, July 1, 2010

Service fee for travel agents may be part of your airfare

In the coming months, fliers who book airline tickets through travel agents may see a change in the mode of payment. If travel agents win the battle with the airlines for commission, the service fee that you currently pay your travel agent may soon be a thing of the past. Instead, the fee would be built into your air fare by the airline. The matter pertains to the March 6 DGCA order stating airlines should pay a percentage of commission to travel agents for selling their tickets.


 The quantum of commission was to be decided by the airlines and agents. Currently, Air India and Jet Airways pay a 3% commission to agents. But 16 foreign airlines, like Singapore Airlines, Lufthansa, Delta, British Airways withdrew commission from 2008. The agents have since been protesting. However, there has been no response from the airlines on the matter so far. In fact, airlines like British Airways and Etihad have decided to withdraw their ticket stock from hundreds of travel agents from May 1.


The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

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