The growth of sub-agents in the city of Bangalore has spprung up to more than 3000, and corresponding has been the growth in their concerns. A totally unregularised segment, the obvious issue that most sub-agents face in the market today is complete rejection from the recognised trade like IATA agents or the airlines. As an unorganised sector, sub-agents cannot be recognised by the government as their credentials and integrity just cannot be proved or is very poor in most cases. Survival mainly depends on the reputation the agents have in the market apart from the kind of service they manage to somehow squeeze through even when regularly being faced by complete rejection.

According to Doreen Mel, director, Carona Hermes Worldwide Travels, “Of course, there are issues that concern a non-IATA agent, but finally, it zeros in on the kind of rapport you build. I have been in the industry for long and I have built a reputation in the market that opens doors for me even though I am a sub-agent.”

But with the number of sub-agents in the market, there are not many who seem to agree. “Sub-agents are treated as non-entities in the market especially if your ticketing volume is less. You are nowhere recognised in the market and the moment you call somebody for information, you are neglected. They do not even consider your earlier background. Even IATA agents do not provide any support,” says Gayatri b n, executive director, M M Sons Travels.

IATA Vs Non-IATA
IATA agents and sub-agents do not seem to go hand in glove. With the increasing number of sub-agents in the market, IATA agents do not seem to entertain sub-agents. Says Gayatri b n, “Sub-agents usually ask for more discount from an IATA agent. IATA agents have the advantage of dealing with passengers directly and since the clients do not know much about the whole affair they land up paying much more to these IATA agents and we bare the brunt of not having direct access to the client. So their concentration is more on such passengers rather than us. Other than that, for any service from an IATA agent, we have to wait for a long time, by which time the customer becomes obviously unhappy with our service.”

Countering this point, a travel agent who has recently become a member of IATA says, “I frankly do not feel there are any major issues faced by sub-agents in Bangalore today. As long as they have a decent track record IATA agents are ready to extend them credit. The IATA agents retain a very small percentage and the rest goes to non-IATA agents. Many of the sub agents have their own CRS systems and make bookings directly with airlines. So they have the best of both worlds. Moreover, sub-agents do not have the problem of providing huge bank guarantees to IATA, which results in banks charging them big service charges annually.”

The cold business war between IATA and sub-agents is not the only concern for agents. According to Nagaraja Gupta, managing director, Travel Air and chairman - TAFI (Karnataka chapter), “The primary issues faced by sub-agents in Bangalore include lack of timely information, problems with regards to interaction with the airlines, shortage of experienced manpower, poor basic infrastructure, lack of capital, difficulty in proving credentials with the customers and a lot more.”

Airlines, which form the major chunk of business for travel agents, also seem to have totally sidelined sub-agents. “The airline scenario is pathetic. Sub-agents are treated like untouchables. We are not entitled to industry perks nor are we invited to any parties, seminars or workshops organised by the airlines, what’s worse is that airlines don’t even give us information promptly. Attending trade events is important when you are in the trade, but you are forced to miss out on all these. We are left with very low margins because airlines do not tell us about the incentives directly nor do the IATA agents” says Gayatri b n.

However, according to Doreen, “There will obviously be doubts in the minds of airlines or their service providers when dealing with a sub-agent because, there are so many agents in the city, one never knows when they shut shop.”

The Government’s Role
Speaking about the role of government recognition or about its plan to regularise the segment, the industry seems to be quite convinced that such an initiative is far from being possible, practically. Notes Gupta, “Sub-agents in the country are definitely many times higher than the recognised agents but the government cannot recognise their sector as their credentials are not proved.” Says Doreen, “The government cannot do anything for us and it is by choice that most sub-agents do not go in for IATA recognition. I had my own reasons for not going in for an IATA membership, but now I am planning to go in for one.”

Considering the fact that there is a huge number of sub-agents in India, consisting of one man agencies to huge conglomerates, with different interests and viewpoints, it will not be easy for such a group to form an association with or without government recognition. “We do not have a body to represent our issue. There is so much competition in the market that nobody helps each other. They just try to spoil your name instead. There is no support at all from the government with regard to our concerns. We desperately need somebody to come forward to make some balanced rules and regulations for both IATA and sub-agents,” asserts Gayatri b n.

According to the industry, the only way by which the scenario could be improved is to make sub-agents viable and informative by close relation with associations of the recognised agents who can provide necessary training by conducting regular courses. “Sub-agents should attend travel institutes, which are no doubt very few in this country, to get the necessary knowledge and information. An allied recognition cannot be a solution but they can form their own association for the purpose of training and in turn, apply for recognition later,” says Gupta.

What Lies Ahead
As for the future of sub-agents, the only consolation is that the cities are growing very fast and it is becoming difficult for recognised agents to reach far corners. “Unless the government interferes or the IATA, or trade connection associations or seniors of the trade think about us without personal benefit the scenario will not improve,” asserts Gayatri b n. On a more positive note, Gupta says, “The personalised services that the sub-agents can give in small localities will keep them growing strong.” Official sources further add that, “The future of sub-agents is very bright, as they have no financial constraints and deadlines like IATA agents. They are answerable to nobody except to their clients.”