After JetAirways, Kingfisher To Pay 3% Commission To Travel Agents
Following a similar move by Jet Airways, Vijay Mallya-controlled Kingfisher Airlines announced that it would pay a 3 percent commission on the total ticket price to travel agents.
A Kingfisher spokesman stated that the commission would come into effect from Friday (Dec 12).
The spokesperson also said that Kingfisher has also backed away its transaction charge on tickets, which was introduced following the abolishment of a 5% commission to travel agents on October 31.
While he did not disclose any cause for the U-turn on the matter, it is understood that the airline took the decision under pressure.
While the present unyielding market terms were not in support of any extra spending, the boycott warning from the travel agents' lobby is trusted to be the reason for the airline taking this decision.
Previously, Jet Airways declared that it would be offering a 3% commission to travel agents on gross fare.
The decision came after travel agents boycotted sales of Jet Airways and its low-priced subsidiary JetLite’s tickets from December 4.
According to Industry sources, the daily sale of Jet Airways and JetLite’s tickets declined by more than 50%, from nearly Rs 18 crore to Rs 9 crore, after the boycott by the travel agent bodies.