Qatar agents divided on zero commission

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Opinion in Qatar is sharply divided on whether Qatar Airways' move to 0% commission in January was a positive move for the country's travel industry.

Despite efforts to promote the benefits of operating in a zero commission enviornment by some of Qatar's leading travel bodies, many agents believe the flag carrier's transition to 0%, which will inevitably see other carriers follow suit, will put some agencies out of business.

"In my opinion, there is absolutely no doubt there will be closures in Qatar due to zero commission," said Rabia Faisal Al Nakib, branch manager, Alpha Tours Qatar.

"The smaller agencies, who have limited education and not that much money behind them just won't be able to cover their expenses. It's all about giving a top professional service to make it work - but if you're not that professional, you're just not going to survive."

"It is good news for the customer - but it is bad news for the smaller guy."

December saw the ACTE (Association of Corporate Travel Executives) and Qatar Civil Aviation Authority (CAA) stage a seminar in Doha, which aimed to educate local agents about how best to survive the move to 0% at the start of 2008.

At the event, CAA air transport and airport affairs director Saleh Abdullah Haroon insisted that Qatar's agencies were receiving the full backing of the authority.

"The agencies want to ensure that their existing income will not be affected until they have had time to shape themselves up."

"I know some are upset and were asking for the commencement date of zero commission to be delayed, but to make such a thing a success we must look at the interests of one and all," he explained. "Agents should work as a team and take things step by step."

Not all Qatar-based agents with whom ATN spoke were negative about a 0% commission environment.

"To be honest, I think it's absolutely fantastic for the market - passengers can now see clearly what they are paying for and overall professional standards in Qatar will be raised," said N.M. Shafiq, operations manager Regency Travel and Tours Qatar.

"I know some people have a phobia about the situation, but as far as I'm concerned, it means if you offer a good, professional service you will do well."

ATN contacted Qatar Airways to find out how the move to 0% had impacted its business, but no one was available for comment at time of press.

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