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Opening New Avenues For The Sub-Agent Segment

Lack Of Information Adds To Sub-Agents’ Woes

Nithya Kamakshi - Chennai

Sub-agents in Chennai and other parts of southern India have a reason to be upset. They are reportedly facing complete rejection by IATA agents and the airlines at the moment.

It is common knowledge that their survival depends on the reputation they have created for themselves in the market. Moreover, they stand a slim chance of government recognition since they are an unorganised segment.

Add to this, poor access to information by the airlines and CRS, reputed to be biased against them, makes matters worse. Due to this, the sub-agents are forced to depend heavily on non-co-operative IATA agents for information. As a result, the IATA agents end up with maximum clients leaving little space for sub-agents who are often treated as non-entities in the market, especially when the ticketing cost is lower.

Doing The Balancing Act

According to Ganesh, manager of Fortune Tours and Travels, "For a non-IATA agent, booking is a major problem, especially, in the domestic non-apex slot. We do not have access to revised airline fares and neither the IATA agents nor airlines are helpful. We are often left groping in the dark. We cannot blame the IATA agents for this since they have their own clientele to serve. Therefore, most of us depend on the rapport that we maintain with a few airlines."

Both, the IATA and the sub-agents, seem to be fighting a cold war for their right to information. And the sudden spurt of sub-agents in the market has only made the IATA agents ill at ease with sub-agents. A qualified IATA staff, Munir, says, "There is a small group of sub-agents who misuse their powers and look for discounts and perks without confirming tickets. As long as they have a decent track record, IATA agents are ready to help them. But many sub-agents enjoy the best of both worlds with their own CRS systems and make bookings directly with airlines."

Moreover, they have an advantage over IATA agents - they do not have to provide huge bank guarantees to IATA, which in turn leads to huge service charges. According to Basheer Ahmed, treasurer of TAFI (Tamil Nadu Chapter) and MD of Chennai Metro Travels, the only problem posed by sub-agents is regarding the payment. "There is a lack of timely information regarding vehicle taxes which is changed every fortnight. This, coupled with frequent changes in the main agency, makes it difficult to prove the credentials of sub-agents," Ahmed adds.

To add to the woes of IATA agents, airlines - which is a major business generator for travel agents - also seem to overlook the anguish of sub-agents. Industry insiders say that they treat sub-agents like third cousins and are often not given industry perks, incentives and valuable information.

Looking For A Solution

Unfortunately, these sub-agents in Chennai do not have an association to voice their views. However, the local sub-agents do have a dedicated group to discuss their problems but it is only an internal body and does not solve any purpose. There is a desperate call for some balanced rules and regulations for both IATA and sub-agents.

The only way perhaps to improve this situation is to keep sub-agents informed about the latest rates and news through recognised agents who can provide necessary training by conducting regular courses. Considering the fact that sub-agents maintain a close relationship with their clientele, they are bound to grow without succumbing to such trivial issues.