Who will protect the travel agent?

Time and again agents in India are left unprotected with no insurance against financial liabilities in situations where airlines go kaput or refuse to give cash refunds when flights are cancelled. This pandemic has brought this issue into sharper focus. Some trade associations share their point of view…

Mumbai

Pradip Lulla, Acting President & VP, TAFI

Agents insurance against airlines default in the IATA agreement is not possible, as it is the airlines agreement to protect their interests. However, we have spoken to MoCA to include in the airline fare as insurance charges which in the current situation is probable. We have also spoken to insurance companies but the re-insurer will give a quote for the business of the industry.

Bhopal

Hemendra Singh Jadon, Chapter Chairman, MP & CG, TAAI

Travel agents are doing more than 80% of airline ticket sales and supporting them, but when we need their support they are not helping us in giving our refunds. We want our money the same way they wanted it when we booked tickets – no credit shells accepted. We will support those airlines that are supporting us right now. Agents will have to plan their strategy.

Mumbai

Jitul Mehta, Chairman Western India, TAFI

One of the root causes of this problem is the fact that this sector is largely unorganised. There is no mandate by the MOT to ensure that agents are registered under them. This leads to no accountability and lack of professionalism. Only once we bring ourselves under an organised sector can we have a policy to protect us.

Guwahati

Vishal Jain, President, North East India Tour Operators Association

IATA renews our membership by July 1 every year and this is the time to have a dialogue with them. All national and regional associations should come together and represent to the government for taking this up with IATA. We should also take legal opinions, since airlines are bound by the law of the country they operate in.

Lucknow

Sunil Satyawakta, Founder Chairman, UP & Uttarakhand Chapter (2014-2019), TAAI

It is time we set up an international body to safeguard the interest of agents. While airlines get due payments from agents promptly, whether the agent has been paid by the passenger or not, their seeking passengers’ undertaking to refund ticket amount to agents does not make sense.

Chennai

Shahul Hameed, Chairman, Southern Chapter, TAAI

Agents must get security deposits from the airlines or IATA has to obtain financial security from the airlines or it has to get the sovereign guarantee from the government of the respective country of the airline. Having an insurance product for agents will be a welcome move. It’s the way forward.

Kochi

Ross Masood Padiyath, Owner, The Great, India Tour Company

A small company like ours lost Rs5 lakh of one particular client who stopped dealing with us when Jet Airways defaulted. But if an agency comes up short of even Rs1000, his ticket stock is withdrawn even if he has given a bank guarantee covering these amounts. Accordingly, if any airline is to operate to a particular country, there should be some form of insurance cover for agencies in case of default by this concerned airline. This should be one of the conditions for any airline to operate in any country.

Delhi

Shravan Bhalla, CEO, Highflyer & General Secretory, OTOAI

Travel agents are vital for airlines but are always left behind. We hardly get credit when we buy tickets from airlines, but when it comes to refunds, especially during these challenging times, most airlines are not willing to refund the amount or are taking more and more time without realising that our clients expect their refund from us the same way they pay us. I am sure IATA is working closely on taking this issue up with airlines.

Inputs by Hazel Jain