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Travel agents to boycott Garuda
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Buyers meet with Association of Indonesian Tour and Travel Agents (ASITA) members at the Bali and Beyond Travel Fair 2016. (JP/Intan Tanjung)
T
he Association of Indonesian Tour and Travel Agents (ASITA) has announced that its members will boycott national flag carrier Garuda Indonesia over its intention to reduce commissions paid to travel agents.
ASITA chairman Asnawi Bahar stated that the airline’s commission from ticket sales would be cut from 7 percent to 5 percent for international flights and 5 percent to 3 percent for domestic flights.
“We will boycott Garuda nationally because its wants to decrease the commission significantly. It’s already very hard for agents with the current competition with online travel agents,” he said over the phone on Thursday.
(Read also: Many foreign online travel agents operate ilegally in Bali: Association)
The travel agents will also file a protest with the government.
Garuda Indonesia vice president of corporate communications Benny S. Butarbutar confirmed that the airline would reduce commissions for travel agents.
“We are adjusting the business pattern with our partners, travel agents. The business situation is changing really fast, with online travel being much stronger, but we will also want to keep [offline travel agents],” he said. (bbn)
