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OTAs, Travel Agents Reach A Compromise With Airlines – 3% Commission

Update: Hrush Bhatt, over at the Cleartrip blog, has explained the commission structure. We were awaiting a copy of the circular to analyse the changes, since we didn't have the specifics of the reconciliation. Bhatt explains the changes as follows: We'll use a typical itinerary and fare to illustrate the difference between the previous commission structure (5%) and the newly announced structure (3%). First, let's take a look at the differences in the old and new structure: Old: 5% commission paid on the base fare New: 3% commission paid on the gross fare after deducting Rs. 225 PSF (Passenger Service Fee) charges Here's the itinerary and fare details: Flight: Jet Airways 9W-331 Route: Mumbai-New Delhi Fare: Base fare: Rs. 2,250 Taxes & fees: Rs. 3,138 (includes Rs. 225 PSF) Now, let's do the math to see how much the absolute agency commission earned is for the same fare under the old (5%) and new (3%) structures: Old: 5% of Rs. 2,250 = Rs. 113 New: 3% of Rs. 5,163 (5,388-225) = Rs. 155 Original Story (Dec 8th) : The airlines have reached a compromise agreement with the Travel Agents Association of India (TAAI).  Consequently, Online Travel Agents like MakeMyTrip, Cleartrip and Yatra have now made Jet Airways and Jet Lite available on their flight search. Hrush Bhatt, founder of Cleartrip informs us that they've enabled booking for Jet and Jet Lite. We just tried out all three sites to confirm this. It appears that TAAI sent out a circular to travel agents this morning, with details of…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

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