Despite recent disagreements between travel agents and airlines over commission cuts hitting the headlines, the two cannot survive without each other, according to IATA country manager - Gulf area Tim Colehan.
“There is a big difference between the European market and the Gulf market; mainly that the travel agent here is still an integral part of the distribution system,” said Colehan.
He explained that this was due to “more self-service options and online booking capabilities in Europe” and because “the vast majority of people in the Gulf are still utilising travel agents as their primary means of booking”.
Colehan said while there had been disagreements between airlines and agents — referring to recent reports of agents in India handing in their capping letters in protest to the trend for a commission-free environment — the two had one common goal; to progress the regional travel industry.
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“There’s a definite interdependence in this region and travel agencies are very important, though currently they’ve got a difficult time when it comes to revenue.”
However, Colehan asserted that IATA does not get involved in the commercial aspects of agent and airline relationships.
“We’re looking to improve the process at airports. Agents won’t be affected by that except that anything that makes the airport process easier and flying more attractive has to be a good thing for agents and airlines because it stimulates demand,” he added.
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