* Travel agencies complain against airline promo fares

Travel agencies complain against airline promo fares

Manila Times, 11 November 2009
By Ben Arnold O. de Vera, Reporter

The Philippine Travel Agencies Association (PTAA) said the airlines’ online promotions are undercutting the industry, forcing them to cut back their operations next year. In a statement, Ma. Paz Alberto, PTAA president, said the continued threat of airline web fares “could lead travel agencies to drastically scale down operations” as there could be “a lot of downsizing as we continue to find some airlines encroaching on our businesses.”

“It is a distressing development when airlines, whom we have considered as our partners, undercut travel agencies,” she added.

Alberto said PTAA wants to “thresh their differences” with airlines through an agreement similar to what it had with Philippine Airlines (PAL).

“We already have a working arrangement with Philippine Airlines where they promised they will no longer have any promo fares that are lower than what travel agencies offer,” she said.

Earlier, PTAA and PAL had a dispute after the airline “drastically” pulled down the fares to destinations that comprise about two-thirds of travel agencies’ businesses during the peak seasons.

Alberto said association would also talk with Cebu Pacific (CEB), which has also been aggressively offering fare promos online.

“We will be having talks with some of their [CEB] officials and try to find a common ground or a working arrangement that will benefit both sides,” she said.

PTAA said monthly ticket sales of travel agencies have dropped an average of about 20 percent since January this year, primarily due to airlines’ promos on the Internet.