How To Select A Travel Agent

Kavita Sethi is delighted about her husband's business trip to Europe. Not only is she going along, she is not paying a dime for her ticket. Thanks to an airline offering a freebie incentive to its client.

Deepali Arya, a student, winged into Detroit on a ticket of just Rs 24,800 inclusive of taxes, aboard KLM. The heavy discount was courtsey an agent of International Air Transport Association (IATA).

How well you know the complex business of air travel can go a long way to help extract cheaper rates. For be it lean or peak season, it is the flock of travel agents who alone can offer discounts of 10-40 per cent on basic air fare. So which of the above deals is the better bet, find out with this primer:

Airlines margin. Under IATA rules, international airlines can give upto 9 per cent commission and domestic upto 6 per cent to agents. But, importantly, based on their sales performance, further overriding commission is given.

GSA margin. Airlines that lack a base in India may operate through the general sales agent or GSAs who further commission sub-agents. The GSAs usually get an additional three per cent (total 12). Theoretically they may be attractive but it is not considered ethical for them to give higher discounts directly to passengers.

Travel category. Discounts vary from class and sector of travel. Thus British Airways may allow on the UK/USA sector, a discount upto 17 per cent in First/ Economy Class and 11-12 per cent in Business Class while KLM may give 17 per cent on Economy to Europe/Canada and 21 per cent for Business. KLM is one of the few to also offer point-to-point discounts, that is, travel without any stopovers, ranging between 30-32 per cent for USA/Canada-Europe/UK, Economy Class. (See Flying high on low fares, Personal Finance, September 20).

M Y Khan, manager, Kwick Travels Pvt Ltd, Delhi, remarks,