Indian Travel Agents Commission

[RichardMannion]

Saw this in the local Singapore newspaper today, and some of the quotes have me in stitches.

http://www.travelbizmonitor.com/travel- ... er-29-4415

Quote:
We are going to send out a strong message to every foreign carrier (currently working on zero commissions) to either pay us commissions or Quit India. If the national legacy carriers have agreed upon the decision, the foreign carriers should follow suit immediately.

The airlines are shifting from a %age commission to a fixed fee based on class of ticket just like other carriers have done in countries around the globe.

Did they forget who owns Singapore Airlines? There was another quote that I can't find online that was by the same muppet along the lines of 'we'll see who lasts longer'. Methinks the Indian Government may have something to say if the foreign airlines did quit India....

[Pete]

In a environment where all airlines are looking where they can trim back services to shore up their business, I wouldn't be terribly surprised if SQ used the opportunity to pull a few flights should demand dip due to this.

Quite why the Indian travel industry think they are immune to the changes happening worldwide, is a mystery, but as you say; if they had their wish and all international airlines pulled their operations from Indian because they can no longer sustain 5% commissions on the thin margins that now exist in ticket prices, this would be a classic example of cutting off your nose to spite your face. 'Quit Indian' is an incredibly immature and parochial reaction to not getting your own way at the negotiating table.

I don't think SQ should be particularly worried about this 'threat'. Any Indian customer who wants to fly SQ will simply book direct on the web. Travel agents just don't have the clout they used to, and only those offering value-add or bigger discounts can survive the sea change that has already swept across this industry.

Neither do I think many, if any, international airlines that operate in and out of Indian are about to change commission plans or policies because some local travel agents are throwing their teddies out of the pram - it would set a precedent they can ill-afford in other territories.

If anything, it exposes their motivation for selling tickets that is purely based on the money they make per flight coupon, and not on what routing / features are best for the customer. Personally I don't buy from any company that openly operate in that kind of way, regardless of industry segment.

The Indian people, Ministers etc are all hard to understand, the mentality to trading is somewhat strange, if they can make a Ruppee today they do not care if they lose one hundred Ruppee's tomorrow and for the rest of the year[?] Short term gain[B)]
Along with the anti foreign feeling in Goa this has been one reason why we have decided not to return this year, along with fears for our safety whilst there.
We have many ex pat friends living in India and they are experiencing the same fears, nine couples have already returned to the UK in the last four months.
We have had our Bank account frozen because we are not in India, even though we have a NRI(Non Resident Indian)Account and it was opened with the full knowledge of our address in the UK and how we would use the account[n]
It appears that the Indian Govmnt have been tyring to kill the tourism trade for several years, they have made an impressive start!
The art of customer services does not exist in India, they are unable to comprehend why you should not rip off customers and then moan when they have no tourist trade the following year! We have visited India for many years, very sadly,it is not the place it once was.[n]
Sorry to hijack your thread Richard, I was trying to show it's the whole Country that are very strange to deal with.

[RichardMannion]

No issues at all goanmad - I know exactly what you mean. I do foresee more companies pulling their offshore operations out of India and to other locations, regardless of how much they may have invested.

From an ex-travel agents perspective, I can see exactly why Indian travel agents want to boycott SQ.
The changes 'sweeping' the industry where instigated by airlines as a cost cutting measure, pre empting the nickle and diming that seems to be the norm now. Agents aren't under any obligation to sell every product.

[Pete]

quote:
Agents aren't under any obligation to sell every product.


Agreed, but it's also not the agents who create a demand for a particular product, so if they're not supplying it, the consumer will go elsewhere.

Airlines advertise directly and, in perhaps the Indian agents haven't realised this, are more than happy to sell directly now. When passengers are given the opportunity once to skip over them, they may quite rightly ask just what is the agent bringing to the party now? That question leaves more than just the SQ business at stake.

quote:Originally posted by goanmad
The Indian people, Ministers etc are all hard to understand ...


Indeed they can be, but don't forget India is still a very backward country as a whole, that fiefs are common, politics is still a bit rough and ready, protectionism and restrictive laws widespread - yet there is a country full of entrepreneurs willing to try. I do agree on one thing, tourism could be a much bigger industry but they do like to make it difficult ...

[Oh and most of the above could apply to the US [B)]]

On this issue of commission, a very high per cent of flights booked by Indians are through travel agents, more people fly than have access to the Web and so the TA business is vital for travel. I think the airlines that have cut commissions are actually shooting themselves in the foot, TAs will only promote competitors who still pay commission to the majority who can't book online. Pete, for this reason I think you're wrong, and right. Changes will happen, but we should never assume that one countries access to online, information, travel etc. is on a par with another.