OTAs across the country have stopped selling Jet Airways ticket protesting against the zero commission/erosion of transaction fee.
Esesntially, over 2500 travel agents (including OTAs) have stopped showing results from Jet Airways on their site – and this is where iXIGo sees an opportunity to position itself as a neutral player (with no specific alignment to any player).
Jet earns revenues of Rs 18.1 crore every day, out of which Rs 16.2 crore is generated by travel agents (online and offline) – source – so Jet will have no option but to go back to the discussion table and sort this out (and so will other players)
We have decided to stop selling Jet tickets from December 4. This was decided at today’s meeting (six associations were involved in the decision), where more than 60 per cent of the entire travel industry was represented. Although three carriers have stopped paying us commission, we have decided to go ahead with Jet because it is the market leader and it should be the first to make a move – General secy, TAFI
The only player that’s not making a fuss over this issue is iXiGo (and hopefully, other meta search engines)
“Not publicized much in media, but verified by us on their sites, Online Travel Agencies (OTAs) in India have also stopped displaying and selling these airlines, leading to a less comprehensive product. Surprisingly, they do not tell their consumers about this on their result page or home page either!
..Travel Agents – We feel bad for you. Airlines – We are with you !” – blog
Do you think iXiGo is right in playing this card (of neutrality) – by not being part of what associations have decided (even other OTAs could have done that ) – even though their business model is not commission based (and more of lead-generation for airlines)?
What’s your opinion?
Whats the all fuss about the zero transaction fees structure.
If the OTA’s want, they can charge money above the price of the ticket as their charges. Big deal.
I have been following the travel industry for more than 2 years now and I know that most of the bookings come from travel agents. But a majority of the sales comes from offline travel agents who sell to corporates. The retail tickets sell, which the OTA’s do are never loyal to one website and always shop around for the best deals. So if they do not sell something, it is their loss. I do not think Jet is going to lose sleep over this matter.
Slowly but surely, the OTAs will figure out their loss and take a different approach. If they are charging the customers fees, tell them and charge. The competition should decide the commission on each ticket.
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