BY SACHIN KUMAR
The going is getting tougher for travels agents operating in Qatar due to regulatory hurdles and intense competition. Travel agents complain that they do not have the freedom or flexibility to offer cheaper tickets to customers.
In order to get more business, travel agents make deals with airlines and come out with discount schemes. But under current regulations, a travel agent is not allowed to advertise the schemes or reach the customer directly. The regulations stipulate that if a travel agent wants to offer discounted air tickets, he first has to submit the details of the discount to the civil aviation authority. The regulatory body studies the terms of agreement and then gives its approval to advertise the offer. The problem, according to travel agents, is that getting such approval takes a long time.
“Ideally, the market should be free and all the stakeholders should be allowed to offer various kinds of discounts and offers to customers. Current regulations regarding approval for offering discounts kills innovation in the market. Travel agents innovate and design new offers in association with airlines, which is good for the entire travel business industry as everyone gets more business,” said Osman bin Sayeed, sales manager, Al Qayed Travel and Tours.
“Customers are the biggest losers currently as they are not given the opportunity to pay lower rates on tickets. If the government wants to help customers, it should allow travel agents to offer tickets at cheaper rates without the approval of the civil aviation authority,” he said.
Another challenge travel agents face is regarding their service commission. When a customer books a ticket from a travel agent he or she has to pay a five percent service commission. However, a customer booking a ticket on the website of an airline is required to pay only a three percent service commission. Current regulations state that the agents’ service commission should be five percent or more.
“There should be a level playing field for travel agents and airlines in case of service commission. The rate of service commission should be same for everyone, be it travel agents or airline websites,” said a travel agent who did not wish to be identified.
“Travel agents lose business due to the disparity in service commission. Customers are now cost sensitive and they prefer to book tickets from the person or the company that offers lower rates,” he said.
Airlines opening new booking offices at the premises of companies is also making business difficult for travel agents. Because of this, travel agents say they are facing direct competition form airlines in booking tickets.
Don’t get swayed by promotions and discounts offered by airlines, because chances are that you might not get exactly what is stated in the promotions.
Chances are that only a few customers will be lucky to get the tickets at discounted rates. Customers should understand that offers are limited to a few seats of a particular class. Usually airlines divide seats into classes and sub-classes. For example, business class seats are divided into sub-classes. Offers are applicable to some seats in certain classes and not on all seats of all classes.
Also, offers do not cover rescheduling of tickets, and flyers will have to pay more in the event of rescheduling of tickets. If you want a ticket that allows rescheduling, you will have to shell out more money. Many a time offers and promotions do not mention taxes, and a customer ends up paying more than what was advertised in the promotion.
The Peninsula
