Representative ImageThe Australian Travel Industry Association (ATIA) has formally requested the Australian Competition and Consumer Commission (ACCC) to implement "guardrails" on airline distribution strategies as part of the re-authorisation of the Qantas-American Airlines Joint Business Agreement. ATIA's submission calls for the exclusion of agency distribution strategies from the agreement, expressing concerns over potential coordination between airlines in dealing with travel agents and tour operators.
ATIA highlights the crucial role of travel agents and tour operators in maintaining a competitive market by enabling price comparison and product substitution. The association argues that allowing airlines to coordinate agency strategies could diminish competitive pressure, affecting commissions and access to fares, ultimately hindering travel professionals from securing the best deals for their clients.
Dean Long, CEO of ATIA, stated, “ATIA is committed to a level playing field where all our members including retail, corporate, and mobile agents can compete fairly. We don’t oppose these major airline partnerships but we are fighting for the safeguards that ensure travel professionals, including the 92% of our members who are small businesses, can continue to negotiate independently.”
The travel trade, responsible for an indirect market worth over $19.6 billion (US$19.6 billion) annually, supports millions of Australians who prefer booking through experts. Long emphasised the need for the ACCC to act as a "referee" to ensure travel agents can continue to provide independent advice without facing coordinated restrictions from major airlines.
ATIA represents a significant portion of Australia's travel industry, with its members handling a substantial share of international air sales and corporate bookings. The association's call for regulatory oversight aims to preserve the competitive landscape essential for the industry's health and consumer choice
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