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Travel Agent Faceoff with Jet ends – will pay 3% Commission

JetLite

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As mentioned earlier, travel agents stopped selling Jet Airways ticket and post discussion with the association, Jet has decided to pay 3% commission to agents (on the gross fare of international and domestic tickets).

Earlier, 5% commission was based on base fare, and 3% of gross fare will be more friendly to operators.

The move to pay three per cent commission does not include its low cost subsidiary, JetLite. The decision was taken after a closed door meeting held yesterday in Mumbai among officials of Air India, Kingfisher Airlines, Jet Airways and the representatives of the six major travel trade associations: TAAI, TAFI, IATO, ADTOI, IAAI and ETAA. The agenda of the meeting was to discuss the revival of the commission system in place of the Transaction Fee model. – source

Kingfisher and Air India will revert back in a day or two.

What’s your take on this issue? Was Jet ‘hijacked’ by the travel association (85% of ticket booking happens via the agent channel).

Discuss

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