Agency Commissions v/s Transaction Fee

Agency commissions are travel agents right over selling airline tickets on both international and national routes. Receiving commissions is an integral part of the IATA Passenger Sales Agreement. According to the IATA Resolution 824, “For the sale of air transportation and ancillary services by the Agent under this agreement, the Carrier shall remunerate the Agent in a manner and amount as may be stated from time to time and communicated to the Agent by the Carrier. Such remuneration shall constitute full compensation for the services rendered to the Carrier.”....
Biji Eapen, President, IATA Agents Association of India (IAAI)

The Indian travel trade has seen and gone through various phases of evolution. It is now the time for the best and most crucial change to be adopted in the industry – changing from a commission-based model and adopting the Transaction Fee model. It can be understood from the model that the charges to be imposed on the consumer are based on the expertise and knowledge of the travel agent or tour operator.
Shubhada Joshi, Vice President, TAAI