Considering that sub-agents do play a pivotal role in the travel business in our country, it cannot be denied that there should be some kind of an initiative taken so as to form an organised sector out of them, says Vyas Sivanand

The primary issues faced by sub-agents across the country include lack of timely information, problems in interaction with the airlines, shortage of experienced man power, poor infrastructure, lack of capital and difficulty in proving credentials to the customers. The general feeling across the board is that an active association addressing these issues would certainly help the
situation.

An Association: The Need Of The Hour

Says K Shiva Prasad of Travel Times India, Chennai, "Since we deal with domestic tours and packages we do not face many problems but there is definitely a need for an association. One of the major issues that an association can help with is in the dissemination of information to sub-agents." He believes that receiving up-to-date information is directly related to ticket sales. "We are unaware of the latest happenings in the industry, while IATA agents get information about any changes in flight schedule or rates of tickets well in advance. We often get educated on these changes only through advertisements, by then the tickets are sold."

The same feeling is echoed by Nagaraja Gupta, Director, Travel Air Pvt Ltd and TAFI, chairman, Karnataka chapter, who says, "Every trade and its segments require representation in the form of an association at both a national and regional level. This plays a pivotal role in addressing their problems and grievances to the various associations and organisations from the government and private sector. Besides this the need for dissemination of information on various national and international issues is answered. Viewing the strength of the sub-agent community in India, it is in their interest to form a national association to inform, educate and assist this segment."

With the popular trend of buying tickets online, and even bidding for the most competitive rates on websites, K V Rajamani, a Chennai based travel and tourism consultant avers that the travel agents will be forced out of business. "Five years from now, when even IATA agents are going to be in a tight spot with the trend swinging in favour of online ticketing, how will sub-agents survive? The need for an association representing their rights becomes all the more imperative."

Initiate Regional Bodies

The sub-agents across the country feel that each region should form their own association and then get together as a national body. "A few leading sub-agents should come together in every region to form an association and later join together to have their national body," stated Gupta. As for the feasibility of forming such an association is concerned the agents, sub-agents and approved agents are of the opinion that it could work out if formed conditionally. "There should be stipulated rules and regulations for sub-agents seeking to become members of the association, else the association will lose its identity and respect," he added.

Is Getting An IATA The Alternate Solution

Is forming an association the only alternative? According to the organised sector in the travel fraternity, sub-agents have a choice of getting an IATA, their ticket to recognition and all the perks that come with it. But they refrain from doing so intentionally. Says Niranjan Gupta, Director, Navras Travels and treasurer, TAAI, Karnataka chapter, "Sub-agents choose to refrain from applying for IATA and get the necessary recognition from airlines and allied bodies. They are aware of the advantages of becoming IATA and yet refrain from doing so. If they then complain about the airlines not giving them due recognition, who can be blamed? If sub-agents do not want to comply with the regulations of IATA which airlines recognise, why blame the airline? Also, IATA has no restriction in limiting the number of IATA agents for any region or state, and the criteria for fulfilment of the same is not so difficult, why should a committed travel agent choose to remain a sub-agent is beyond me."

The credibility of a sub-agent is often under fire. "Since many sub-agents do not have an office, manpower, technical skills, or any commitment that demand him to run the business on a long term basis, he can cease operations according to his own whims and fancies. How can an association add value to a segment that is so undecided," questions NiranjanGupta.

Joining Hands With Existing Associations

"The Travel Agents Associations in India could probably form one separate wing under which the sub-agent association can start functioning with their assistance and co-operation. In fact, we will be taking up this issue in Karnataka in TAFI to find ways and means to start this movement," says Gupta. Rajamani firmly believes that an association will lend credibility and financial security to the sub-agent segment. "If an IATA agent defaults in payment, then the airline can collect the money from TAAI. Although the agent still loses his license, there is the element of financial security. A similar principle could be adopted by the sub-agent association," says he.

While associations like TAAI do cater to some of the needs of sub-agents, there is no exclusive agency to solely represent a sub-agents’ rights. "There are associations like TAAI, which cater to some of their needs, like commissions etc, but still a large portion of their needs remain unaddressed," says a representative from Trade Wings, Chennai.

Says a senior official of Paradise Holidays, Delhi, "There are only 300 agents approved by the ministry of tourism and the number of unrecognised agents is five times higher. In such a case, there is actually no tourism legislation act in the country. To reach out and help the sub-agents, there have been several initiatives undertaken by industry bodies and individuals. During my tenure as secretary of IATO, we tried to give them recognition in a small way. Any non-approved agent with the turn over of Rs 20 lakh in foreign exchange was offered the membership in special category."

According to Maharaj Wahi, president, Indian Association Of Tour Operators (IATO), "Although the only recognition that may favour this segment is the one from the ministry of tourism, IATO is offering membership to sub-agents just to get them closer to the organised segment of the industry. For that they need to be in business for a minimum of two years and need to be recommended by at least two IATO members."

(Inputs from Reema Sisodia-Mumbai, Jyoti Koul-New Delhi, Susan George-Chennai)