SpiceJet, GoAir bring back transaction fee model for travel agents
Mumbai: Low-cost carriers SpiceJet and GoAir have agreed to pay booking agents a minimum transaction fee of two per cent starting June 1, a move that could lead to a proportional increase in fares.
The new transaction fee, which would be applicable on the base fare and fuel surcharge, is to be inbuilt in the final airfare starting June 1, the Travel Agents Association of India (TAAI) said. The fee will be credited in the following month to the travel agents.
“Currently, the agents charge a separate fee as commission or service charge. This was a deterrent as people do not wish to pay anything higher than the final price. The remuneration to the agent will now be included in the ticket price itself,” said Zakir Ahmed, President of Travel Agents Federation of India.
Neelu Singh, Chief Operating Officer of Ezeego1.com, said: “Given that all players are working hard to boost their profit margins, this indeed is heartening news for the entire travel agent community. The travel agents give specialised advice to travellers and are entitled to remuneration.”
19/05/14 Adith Charlie/Business Line
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