Africapointcom voices perspective on Airlines` decision to implement zero commissions for flights from April 2008
Released on: March 28, 2008, 11:52 pm
Press Release Author: Natisha Nel
Industry: Small Business
Press Release Summary: The company provides reservation services for hotels, airline tickets, rental cars, tours and safaris to the top travel destinations in Africa.
Press Release Body: AfricaPoint.com, an African specialist travel agent offering online as well as off line travel services, voiced its perspective on Airlines' decision to withdraw commissions hitherto paid to Travel Agents on ticket bookings. Airlines worldwide are moving towards e-ticketing and zero commission bookings to travel agents. In a follow up to this development, travel agencies will be constrained to impose a service charge or professional fee in order to bridge the gap created by the zero commission policy adopted by airline companies.
Given that in developed countries like North America, over 96% of travel agents are automated with a Computer Reservation System (CRS), it is estimated that the rest of the world is rapidly automating, and in the next decade will draw even. The new measures by the carriers is aimed at encouraging the up take of on-line booking by clients of respective airlines. The date when the proposed service charge comes into effect coincides with that of the zero commission by airlines.
Ebrahim Ombayo, Flights Reservations Officer, Africa Point concedes that, \"On a positive note, zero commission imposed by airlines will force travel agents to offer better quality services to their clients since they might be forced to add service fees to flight bookings and need to account for extra fees they impose on clients."
Although the International Air Transport Association [IATA] has begun the countdown - 100 days to 100% e-ticketing, concerns regarding Africa loom large. According to IATA, e-ticketing penetration in Africa is only 83%. Although as many as 28 airlines now offer Electronic Ticketing, limited access to Internet in many areas in Africa could be a hindrance in making web bookings.
Another disadvantage to clients is that web bookings are likely to deprive them the flexibility of changing tickets when they change travel plans and that they will not have the expert knowledge of choosing the cheapest flight routes and airlines, something that an agent can easily do.
Andrew Muigai, Managing Director of Africa Point says, "Eliminating travel agent commissions on flights has been coming for at least the last 5 years. Travel trade groups in African countries have opposed it and tried to buy time. Some members, who are heavily dependent on airline commissions will be hit very hard. They may even close down."
About www.africapoint.com
Africapoint.com is an Africa centric travel agent, offering travel services through the company website as well as offline. The company provides reservation services for hotels, airline tickets, rental cars, tours and safaris to the top travel destinations in Africa. Among the countries Africa Point covers include Kenya, South Africa, Egypt, Tanzania, Seychelles, Zimbabwe, Mauritius, Botswana, Ethiopia, Namibia and Uganda.
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