Zero Per cent Commission: Overcoming the Challenge
Document at a glance
| September 2008 |
Market Analysis |
Price (For Indian Customers): Rs 2000
Price (For Overseas Customers): USD 50
By TAAI, TravelBiz Monitor and TATA Strategic Management Group
Abstract
The year 2008 has been a challenging year for the travel and tourism industry, especially the aviation sector. The unimaginable increase in fuel prices prompted the airline industry to take cost cutting measures with a domino effect on the travel agent fraternity, which is now facing the decision of zero commission.
Though the concept of zero commission has been spoken about for quite a while, the decision to implement it was sudden. In view of the impending scenario, the Travel Agents Association of India (TAAI) took the decision to evaluate an agent’s current business module and present concrete options for future sustenance in the business. This thought process was put into action by knowledge partner — TATA Strategic Management Group — which conducted a country-wide research across various stratas of the travel agent fraternity. TAAI decided to communicate the findings of the research in the form of a research report, aptly titled — ‘Zero Per Cent Commission: Overcoming the Challenge,’ for the benefit of the travel agent community in India.
In this report, various business models are thrown up as suggestive measures wherein members are free to choose one or none of the recommendations made by TATA SMG. Findings of the survey as presented in three different formats, is the most exhaustive presentation for the benefit of TAAI members and business owners. A more customised option has been developed so that members can present the same to their front-end staff and clients. It aims to demonstrate value proposition of the travel agents.
Regions covered
India, Global
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