Exorbitant IATA Annual Agency Fees for 2012 ?????

Default, Letters — By on January 20, 2012 at 5:28 am

IATA has increased its annual fees for 2012 exorbitantly per location to INR 10779 from INR 3952. We were surprised when we saw their Invoice which had included additional charges with regards to Certificate Fees of INR 1259 + Service Tax INR 1204 + Education Cess INR 24 + H Education Cess INR 12 totaling to INR 13278. Still the industry is unable to understand the reason of Increasing Agency Annual Fees from INR 3952 to INR 13278 per location , i.e. an Increase of INR 9326, which is approx. 2.5 times Exorbitant IATA Annual Agency Fees for 2012 ????? more than previous year, for what ? We don’t see any justification by i n c r e a s i n g t h i s amo u n t . The standard or quality of IATA Certificate is actually not worth INR 1259, which we can get it printed for around INR 10 if not less. And today, the relevance of IATA is getting down . Though our PSA agreement endorses “commission” , the 16 airlines not giving us any commission. On the other hand, these airlines, instead of paying the “standard commission “ of 5% to the ordinary travel agents , are pumping more than 13 to 15% commission as “incentives” to the consolidators under the PLB schemes – up front and back end payment systems for promoting their business.

Many agents are strapped with financial guarantees . By means of TAP, many agents, though financially sound, are forced to route their business thru consolidators as they do not have any ticket stock of certain airlines. Many other agents, in order to compete in the market are forced to buy tickets from consolidators since they are not eligible for PLB system. In such situation, we may have to think loudly on the relevance of IATA and their ticketing policies Indian scenario . By holding an IATA accreditation, if the Agency cannot issue tickets from his own stock or use his own IATA validation, then what is the relevance or charm in having an IATA approved or Certification for a location ? Or these international certifications are for beautification on the walls ?? It appears that WE, the travel agents should review the value and creditability of IATA in terms of this exorbitant annual fees comparing with its services and benefits provided to the ordinary travel agents.

Rajeev Shroff ,IAAI Maharashtra President - Kwikfly Travel, Mumbai

Rajeev Shroff

IAAI Maharashtra President -

Kwikfly Travel, Mumba

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