Tuesday, July 21, 2015

Airlines woo agents with hefty fees to prop up ticket sales

Faced with sluggish demand in the lean season, airlines have started offering hefty commission to travel agents for clearing inventory.

While the state-controlled Air India is offering 10-20 per cent commission on base fare to push sales in the domestic market, low-cost carrier GoAir has started giving 15 per cent commission to select agents.

An industry source said Air India was giving 10 per cent commission on base fare for economy class tickets with business class tickets fetching 20 per cent incentive.

“GoAir is giving a commission on base fare plus fuel surcharge. Under the scheme, agents depositing Rs 1 to Rs 3 crore in a single transaction during July-September period are eligible to get 15 per cent commission. There are other conditions too. The scheme is a bit complicated,” the source said.

Neither of the two airlines responded to a query on the issue from Financial Chronicle.

Another low-cost carrier SpiceJet, which has repeatedly launched flash sales, has also come out with an incentive scheme for travel agents. The airline is offering incentive of 3-5 per cent on bulk deposit of advance payment.
20/07/15 Nirbhay Kumar/mydigitalfc.com
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