Tourism bodies for win-win situation

Airlines fix uniform fares

SANGAM PRASAIN
KATHMANDU, DEC 06 -
Three tourism associations have decided to adopt a win-win situation in response to the move by the Airlines Operators Association of Nepal (AOAN) to fix uniform fares and commission rates for travel agents for long-haul routes.

A joint meeting of the Nepal Association of Tour Operators (NATO), the Trekking Agents Association of Nepal (TAAN) and the Nepal Association of Tour and Travel Agents (NATTA) on Monday discussed a new modality that will be presented to the AOAN.

“We have decided on a ‘win-win’ situation, but considering that Nepal Tourism Year is approaching, we have decided to wait until December-end,” one of the association members said.

“We have asked the AOAN to postpone the decision until December-end,” said NATTA treasurer C.N. Pandey who represented the association at the meeting.

He added that the meeting had endorsed a proposal to be submitted to AOAN soon. The association is mulling publishing seasonal airfares and revising some of the decisions made by the AOAN for a win-win situation. NATO president Ashok Pokhrel said that the AOAN’s move to stop the practice of charging excessive commission by travel agents from customers was a positive one. However, implementing the decision immediately could create problems for all the agencies operating here.

“We have asked that the old provision be continued until the end of 2010 as the agencies had already submitted the quotations for their tours at the old rates,” he said.

A change in the commission rate and airfares in this situation will result in massive losses to tour and travel operators, he added.

Domestic airlines have fixed uniform fares and commission rates for travel agents for long-haul routes, which they said was an effort to make the aviation industry sustainable and ensure healthy competition.

From Dec. 1, Buddha Air, Yeti Airlines, Guna Air and Agni Air have been charging the same fares for flights between Kathmandu and Pokhara, Biratnagar, Bhairahawa, Nepalgunj, Bhadrapur and Dhangadhi. The fares have been adjusted to match Buddha Air’s tariff. The differences in ticket prices range from Rs 50 to Rs 300.

Similarly, the commission for travel agents has been fixed at its upper limit. Travel agents get a commission of up to 12 percent. However, the commission on Buddha Air’s tickets has been fixed at 7 percent and the commission on Yeti Airlines tickets at 11 percent.

“The uniformity in fares and commission will not be sustainable in the current scenario where airline passenger movement has been swelling every passing year,” a tour operator said.

The move by the airlines reflects cartelling when the country has a free market economy, said a travel agent. Pokhrel said that it was their business; and that if it looks like cartelling, it was the government’s job to stop it.