Relations thaw between agents and LCCs

Relations thaw between agents and LCCs
By admin


Travel intermediaries are playing a growing role in the low cost phenomenon, as former antagonisms over commissions start to subside.

In a panel discussion at the Web in Travel conference in Singapore, Abacus vice president marketing Martin Symes told delegates the global distribution platform (GDS) had seen sales of low cost tickets rise by 86% over the last year, despite the lack of a commission structure.

“Intermediaries are playing an increasing role in the whole low cost phenomenon,” he told delegates. “It’s not a small business.”

The corporate sector is playing a key role in driving that trend, he explained.

“There is clearly demand for low cost seats increasingly among the corporate travellers and companies definitely want those to be booked through the GDS so they can follow the same practices and processes which are so important to them.”

Scoot chief executive, Campbell Wilson, agreed that the Singapore-based carrier is also seeing the trend and is placing growing emphasis on the trade in relevant markets. That cooperation marks a significant shift in the historic relationship between LCCs and the travel trade, he commented.

“When low cost airlines first came to this part of the world, there was a real antagonism between agencies and airlines,” he said.

“But over the last 10 years, there has been a bit of a d√©tente and an acceptance on both sides that they need each other. I think we’re reaching the point of a genuine partnership, it’s just how we structure that.”

For AirAsia X, 8% of overall bookings come via third parties with the rest direct, chief executive Azran Osman-Rani revealed.

“There is definitely a role for aggregators and people that can put together interesting packages,” he said. “We only offer one part of the travel solution.”

Latest News

  • Cruise

P&O rescues Rotary volunteers after collapse of Air Vanuatu

P&O Cruises Australia has answered a plea for help from a group of young Australian Rotary volunteers, stranded in Vanuatu following the collapse of Air Vanuatu. The students, many of them teenagers from Albury, NSW, were volunteering for a youth project run by the Hive Rotary Club Australia when the airline abruptly cancelled all flights, […]

  • Destinations

Intrepid continues expansions with launch of first DMC in Jordan

Intrepid has increased its presence in the Middle East with the opening of its first destination management company in Jordan. Based in Amman, the local team will operate Intrepid’s range of nine experiential small group tours in Jordan from this summer, with a view to expanding the range for 2025 and beyond. Zina Bencheikh, managing […]

  • Appointments

Minor hotels appoints Puneet Dhawan to key Asia role

Global hotel owner and operator Minor Hotels has appointed Puneet Dhawan as head of Asia as the group plots its growth in Asia and India. From July, Dhawan will be responsible for the performance of all Minor Hotels properties in Asia, working in close collaboration with the Minor Hotels senior leadership team and will report […]

  • Appointments

Abercrombie & Kent and Crystal appoint Evon Ler to director of sales, Asia

Abercrombie & Kent Travel Group have announced that Evon Ler will join them in the new role of director of sales, Asia. She will work closely with Tony Archbold (VP, Sales, APAC, Crystal) and Susan Haberle (VP, Sales & Partnerships, APAC, A&K) with trade support across the region. Ler comes to the A&K family with more […]