Travel agencies plead with PAL to stop promos
MANILA, Philippines - Travel agencies are asking the Philippine Airlines (PAL) to stop directly competing with their sector by offering similar promotions and packages.
The Philippine Travel Agencies Association (PTAA) said that PAL has been undermining the sector through its highly discounted travel tours, airline fares, hotel accommodations as well as other accompanying perks and substantial benefits.
"The association’s members could not help but notice the incessant use by PAL of the foregoing types of travel and tours promos/packages, which to their mind is in direct contravention with the well established and long existing business principle that have always been observed by and between the country’s travel agencies and the nation’s leading airline companies such as PAL," Maria Paz Alberto, president of PTAA said in a letter dated July 26, 2010, to Richard Miller, chief commercial group adviser of PAL.
PTAA told Miller that PAL's actions "is not in consonance with the concepts of fair play, fair competition and equity."
Alberto said that the flag carrier has broken the long-established understanding between the travel and tours industry and airlines, that there will be no unfair competition.
"Each and every business practice must carefully take into consideration, not just the economic and beneficial welfare of the airlines concerned, but as well as the inherent rights and existing business interests of the country’s travel travel agencies."
PTAA said that its members were affected by the global slowdown, and their plight is aggravated by the competition posed by PAL.
"It is our most respectful and humble request to please include in the airline authorities’ agenda to formulate appropriate measures of relief that could possibly be extended by PAL to the unfortunate plight of the associations’ members," PTAA said in its letter to Miller.
Agencies: Dont be greedy.
Travel agencies are like crocodiles and they are no better than tax evaders. They charge the airlines operators as well as the filipino riding public with exhorbitant and very high commissions, that's why they are the main reason for the prevailing high air fares. they even earn more than the airline operators earn. they should not prohibit the airline companies to offer a lower rates.
the purpose of the liberalization of the domestic airline industry (allowing interested filipino investors to operate and compete with the monopolist airline company) is to bring free competition and lower the airfares to a reasonable and affordable level. but these dealers opposed this policy by collecting prohibitive commission, thus discourage local tourism.
travel agencies' commission should be regulated and the riding public should be given the right to choose where to buy their tickets at the lowest price. these dealers should concentrate only on offering good travel package, arrange reservations and attractive travel places, rather steal the money of the local travellers. if they want to earn more, then promote tourism not by charging high commissions.