Rattan K Marrott
CMD,
Marrott's Travel Express

Alas! We are trying to wake up from our sleep after the damage is done. Don't you think we deserve it; we were sleeping when nine per cent became seven and then five per cent. Have we made any representation to the airlines as yet in writing giving the pros and cons with alternate suggestions, including the effect on the travel agent fraternity in general?

One voice is right. You require the right leader between the three associations or an outside agent to be the spokesperson and not all three talking and messing up the issue.

The plan of action should be - prepare a representation and submit the same to Air India and then discuss the issue threadbare on the points submitted and do not stray from the main purpose.

Airlines' loss is nothing new; they do not need to expand. They need to curtail operations and reduce any unnecessary expenses to reduce losses. Penalising agents is not the answer as agents today are doing all the work that was being done by the airlines.

Hari Dewnani
Head (HR & Admin),
ANZ Travels

There are many factors to the zero per cent commission issue. One, the airlines haven't analysed the market scenario as they should have. Supply has multiplied, but the demand has remained more or less constant. This has led to lopsided growth, for which the only party to be blamed are the airlines.

Why should the agent have to suffer if the airlines miscalculated? For all that they have been screaming hoarse about increasing costs and mounting losses, why are they still in business? We have had instances in the past where airlines have shut shop. If the airlines feel that cutting agent commissions will be the end to their problems, they are mistaken. Another claim by the airlines is that zero commissions are practiced globally. Are they fooling agents by saying so? What about markets that still practice the nine per cent regime, like Japan? The US and Europe have been cited as examples of markets that work on a nil commission model, but if we analyse the scenario we will see that no airline in the US is making money, despite having cut off the agent.

The Indian market needs some breathing time; it isn't even fully credit card-enabled. It's ironical - the relationship between the agent and the airline has been reduced to master and slave, when it initially began with full support from our side. Despite all this, the airlines still stand by the fact that agents are their primary distributors.

Inder Sharma
Chairman,
Select Hotels

I am of the opinion that the success of any particular association depends on the quality of office bearers. Therefore it is integral to have the right office bearers in all the present associations and the upcoming ones.

One of the factors that led to my decision in the year 2000 to sell Sita World Travels to Switzerland based Kuoni Reisen Holding AG (Kuoni) was that I had anticipated during that time itself that the commission of travel agents would slowly but surely come down to approximately two to three per cent. At a time when it is becoming important for the airlines to reduce their costs, it was expected of them to cut their costs by adopting a zero commission structure.

N R Swamy,
MD,
Syrisa Travels

Recently, the agent fraternity united for a serious cause which was a very encouraging move. But I hope this unity is not temporary in nature. Apart from agents in their individual capacity, it is the associations that need to strongly unite and fight the cause as a team. It is important that to fight as a team we need to work as a team. The trade today definitely needs to be united and be true to themselves instead of being fragmented due to petty issues and differences.

Moreover, the airlines need to realise that there are many other ways of controlling costs and one of the ways is to cut down on PLBs completely. The future will see smaller agents dying a natural death.