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Industry: Hospitality
Location: Dubai, UAE
QA poised for more cuts
by ArabianBusiness.com staff writer on Tuesday, 15 April 2008
Qatar Airways has hinted that more commission cuts are on the cards while agent sources close to Arabian Travel News have said the airline will trial a 0% policy in the UAE from the beginning of June.
The airline's regional manager for the UAE, Pakistan, Bahrain, Iran and Afghanistan, Abdul Qadir Aziz, told ATN that having introduced 0% commission in its home market Qatar in January, Qatar Airways was now looking to do the same in other markets.
"We are looking at the rest of the region, but we have to sit down with our travel partners first to discuss this and make sure they can survive," he said.
Aziz said there was no deadline for Qatar Airways adopting a 0% commission policy across the board, but noted that in Qatar, agents who were previously afraid of the change were now seeing benefits.
"In Doha we hear that the travel agents are now making more money [by charging service and management fees] and are happy," he explained.
"So I don't know why travel agents take 0% commission so negatively - this actually benefits the travel trade."
At time of press, there was trade speculation that Qatar Airways was poised to axe commission in the UAE.
"I've been told they will trial it here in June," one agent told ATN.
He had previously been told end of March/beginning of April, but this had been postponed, he added.
Qatar Airways general manager commercial Ali Al Rais was unavailable for comment at time of press.
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