News that Etihad Airways will slash commission to 0% from January 1 has been met with grudging acceptance by Abu Dhabi’s agent community.
The majority of agents polled by ATN last month said the move, which follows Emirates Airline’s introduction of 0% on October 1, was widely anticipated.
“We have been expecting this,” conceded Abu Dhabi Travel and Tourism Agencies Committee (ATTAC) general secretary Hani Khorsheed.
“But it will not affect us that much – agencies accept this new culture now and are well prepared for it.”
Desert Travel & Tours general manager Shahid Mahmood echoed his sentiments: “This new move is not a problem for us,” he said.
“We will simply implement a service charge.”
The GM of another Abu Dhabi-based travel agency, who wished to remain anonymous, said he was not surprised by Etihad’s decision but raised concerns over “pricing issues” in that agencies could find themselves priced out of the market once they had added their service charge to the equation.
“It really depends if Etihad is going to add a 7% service charge to its tickets,” he said.
A further contributor who requested anonymity had contrasting views on the situation. He claimed airlines were trying to “destroy the travel trade” and took the view that implementing 0% commission was a sign that airline sales staff were incompetent when it came to enforcing an effective distribution model.
“They don’t know how to sell their product properly,” he fumed. “We are forced to sell tickets making less and less margin and when we charge a fee, who gets blamed [by the customer]? The travel agencies do – it’s a disaster.”
However, Al Mazroui Travel GM Abul Kashem said agents realised that all airlines would implement a 0% commission policy soon.
“We are already implementing a service charge so we must accept this reality, adapt and move on,” he said.
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