Qatar prepares for zero commission

Doha played host last month to a seminar held by the ACTE (Association of Corporate Travel Executives), in conjunction with the Qatar Civil Aviation Authority (CAA), bringing together travel agents and buyers to look at how best to survive the transition to 0% commission.

From the beginning of January, home carrier Qatar Airways will adopt the policy, paving the way for other airlines to follow suit in that market. As a result, with two or three agencies accounting for about 80% of the entire travel market in Qatar, the smaller independents are being forced to look at new ways of doing business.

Around 250 agents turned up to the briefing to voice their concerns now that they are being forced to face a service/transaction fee environment - something most have no experience of.

But ACTE executive director Susan Gurley said the association had helped many companies in several countries get through the transition. "It is a matter of establishing value in a fee-based relationship that is ultimately more cost-effective and controllable," she told agents.

"This event will be the first step in smoothing a transition that will be inevitable for all regions."

The workshop's main focus was to identify management fee structures and participants heard from a wide range of industry experts including consultants and technology companies, who gave hints and tips for surviving the move to 0% commission.

Bicky Carlra, group president of TraVision, who moderated the event, plans to host a follow-up event in Doha at the end of January to train agents on how to face the impending changes.

"I saw some scepticism, thus our proposal to help the industry embrace the change and prepare to manage their business," he said.

"We aim to help them learn how the other regions surpassed this challenge to come out winning."

But some travel professionals told Arabian Travel News that they feared smaller agencies would go under.

"It's just not possible for travel agents to cope with zero commission," said Tourist Travel Bureau chairman Ahmed Hussain.

"They would need two or three years at the very least to learn how to live with this new system; I know that some of the little guys believe they are going to go out of business."

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