Issue of August 2005  
-
In Focus
Trade Bytes
Macro View
Up Link
Hotel Talk
Spotlight
Air Waves
Look In
Look Out
Channel Chat
Office Next
Snap Shots
ET&T Services
ARCHIVES/SEARCH
SUBSCRIBE
CUSTOMER SERVICE
CONTACT US
ADVERTISE
ABOUT US
 Network Sites

  Express Computer

  IT People
  Network Magazine
  feBusiness Traveller
  Hotelier & Caterer
  Exp. Pharma Pulse
  Healthcare Mgmt.
  Express Textile
 Group Sites
  ExpressIndia
  Indian Express
  Financial Express
Untitled Document
Resource Links
My Wedding Favors

Creating Synergies

Travel Conventions In The Spotlight

While ‘coming together’ could be a mantra for India's travel trade associations to face an uncertain future, it remains to be seen whether common issues will bind them together. Bhisham Mansukhani and Jyoti Koul probe ahead…

The impact of a joint working group could be
unprecedented in the long-term. It could formalise and effectively channel our concerted efforts
Zakkir Ahmed

The next two months seem abuzz with activity what with conventions of four trade associations being lined up - TAFI in Singapore, IATO in Kochi, ICPB in New Delhi and finally, TAAI in Colombo. Networking will be on top of the agenda and business cards will be exchanged over many a glasses of spirits. Inter-regional and inter-state communication and networking will be at its busiest since all conventions are taking place in different parts of the continent. But what is of more significance is the opportunity to synergise and co-ordinate their resources that these conventions offer the industry, especially in light of all the talks about a joint committee.

Unity is the surest currency of the intellectual, reads an anonymous Oriental dictum. And that is one area where travel agents have come up short, losing ground to adversaries namely airlines, hotels and, not in the least, the government.

However, there have been instances when the agencies have joined hands. For instance, when TAAI and TAFI called a joint meeting in August last year to announce a boycott of Lufthansa German Airlines for its decision to cut commissions by two per cent, their solidarity over the next few weeks compelled the airline to rescind the cut.

Again in March this year, a concerted push by Air- India saw TAAI president Balbir Mayal and VP Ashwini Kakkar, TAFI president Zakir Ahmed, ETAA president Karl Dantas and IAAI president Biji Eappen not only address the media from a single dais but also formalise a joint co-ordination committee to initiate dialogue with the national carrier. Irrespective of the aftermath of the airline-agent stand-off due to the former's push for a commission cut, the crisis nevertheless formed a committee even though it is in status quo.

Co-ordination Is Key

While any convergence may sound like a temporary burst of earnestness, the heads of these associations are now speaking with more substance. And despite the fact that the trade is dogged by issues that have divided it into associations in the first place, the four presidents feel there are certain issues that fuse them together.

On the eve of perhaps his association's most symbolic convention, TAFI president Zakkir Ahmed has picked the theme, 'Keeping Pace With Challenging Times' and believes that the idea of joint co-ordination is precisely a step towards making the theme a reality.

"The impact of a joint working group could be unprecedented in the long term. In our forthcoming convention to be held in Singapore, we will talk about keeping pace with the challenging times. We all know that the tourism industry in India is changing fast and a synergy of this proportion is critical towards dealing with the uncertain dynamics to come. Even though TAFI is working closely with TAAI and at several occasions has supported IATO as well, a joint working group can formalise and effectively channel our concerted efforts," Ahmed says.

But only a unanimous affirmation can make statements like these a possibility. G S Dhar, former joint director-general, tourism, underlining the importance of synergies in the tourism industry, says, "Tourism is an activity where all components have to work in sync with each other to deliver the product."

Mayal declares, "I believe that it is time that all existing trade associations constitute a joint committee for the betterment of tourism." Although he wasn't himself present at the historic March press conference, his association was in fact part of the united block. IATO president, Subhash Goyal repeats his stance of four months ago, saying, "I have always advocated the fact that there should be a joint co-ordination committee and IATO has often invited other industry associations to represent the cause of tourism. So if there is any move to form such a committee, we will be the first to participate."

Caution Is Necessary

The only way the joint committee can make something out of this is by identifying the common ground that the committee would cover so that invariably, the differences can come to light and not conflict with the objectives of the joint committee

Tej Sahni

However, after all that has been said, it makes one wonder why the four association heads haven't instituted the idea yet.

While the question of formal institution of the joint committee remains in the realm of speculation, its fate is underpinned by the reasons that brought them together. Was the need to form the committee a knee-jerk initiative? Will it dissipate and be called for strictly on a need-to basis? Could it have happened if it weren't for Air-India's salvo on the commission rate?

Mayal offers a perspective by recounting how a similar initiative was suggested by none other than P R S Oberoi, chairman of EIH Hotels, in 2003 when many associations remained apprehensive and stayed non-committal. "At that point, we explained to the associations that such a committee would in no way dilute the identity of individual associations and therefore there was no need to feel threatened. But nothing happened," he says.


We need to clearly understand that once the committee is formed, it will only take up the common, national, policy and political level issues. All other issues will remain firmly in the ambit of the
respective associations

Balbir Mayal

Then there are those who have deliberately subdued it. One travel agent who is both a TAAI and TAFI member asserts, "The only thing holding back the formation of the overdue joint committee is the clash of individual interests. Now, while that lies in the private realm, these people have a greater responsibility to their members and their interests lie in standing together to wear the opposition down. We have our differences but when our common interest is at stake, we need to speak with one voice and that voice needs to be formalised. It cannot be raised just during a crisis. It must have all associations as signatories."

Another, anonymous observer who is more skeptical, says, "We have come together during crises and we will do so again when the situation demands it. But I do not think that a joint committee will work. If there is one joint coordination committee, then other associations become dispensable. There can either be a committee or separate associations."

While the differences between IATA and non-IATA agents will not disappear overnight, issues can be dealt with only if there is consistent communication. "Here, ETAA could extend its role to creating a non-IATA community that IATA agents can work with and all defaulters could be identified and stamped out of the system," Karl Dantas, president, Enterprising Travel Agents Association (ETAA) suggests.


IATO has often invited other industry associations
to represent the cause of tourism. So if there is any move to form such a committee, we will be the first to participate

Subhash Goyal

More solutions are offered. Goyal says, "I think the solution lies in having a tourism board governed by the cabinet secretary or the Prime Minister of the country since tourism is dependent upon many other ministries."

Mayal adds, "We need to clearly understand that once the committee is formed, it will only take up the common, national, policy and political level issues. All other issues will remain firmly in the ambit of the respective associations."

If there was a last word to be had, one of trade's most illuminous and objective doyens should have it. Former TAAI president Tej Sahni comments, "The associations, when they converged in March, had nothing other than fighting the airlines in mind. The only way they can make something out of this is by identifying the common ground that the committee would cover so that invariably, the differences can come to light and not conflict with the objectives of the joint committee." Some industry observers however differ, saying that a potential coming together of IATA and non-IATA agents through a medium like the joint coordination committee could bring closure to a lot of these very conflicts.

Seize The Opportunity

The push for a joint committee could be commendable. It could be the wind of change. What it certainly is not, however, is a luxury that the trade can do without. It is an imperative. For instance, when most hotels in India's gateway cities arbitrarily increased their tariffs wrecking havoc with all the printed itineraries that tour operators had promoted to their inbound clients, the travel trade failed to prevail on the hospitality industry.

On the other hand, again, if one examines the urgency for transition towards a handling fee regime, TAAI and TAFI are better off putting their heads together on the matter. And if 'seeing is believing' is to count for anything, an extempore formalisation of the committee had already taken place when a statement was drafted on the letterhead bearing TAAI, TAFI, IAAI and ETAA insignia.

So, while these associations will still battle for their members' interests, at times even against each other, those very interests could see them combine forces against an adversary who is still neither accustomed to nor convinced of their unity.

<Back to top> 

© Copyright 2001: Indian Express Newspapers (Mumbai) Limited (Mumbai, India). All rights reserved throughout the world. This entire site is compiled in Mumbai by the Business Publications Division (BPD) of the Indian Express Newspapers (Mumbai) Limited. Site managed by BPD.