The Australian Travel Industry Association (ATIA) has called for specific guardrails from the ACCC to protect competitive travel market re-authorisation of the Qantas-American Airlines Joint Business Agreement.
In a formal submission to the Australian Competition and Consumer Commission (ACCC), ATIA has called for the exclusion of agency distribution strategies from the proposed agreement. While the alliance allows the airlines to coordinate flights and frequent flyer schemes, ATIA is concerned that it also permits them to coordinate how they deal with travel agents and tour operators.
The submission highlights that travel agents and tour operators act as a critical competitive constraint on airlines by facilitating price comparison and product substitution at the point of sale.
ATIA argues that if major airlines are allowed to coordinate their agency strategies, it reduces the pressure on them to offer competitive commissions and fair access to fares. This ultimately makes it harder for travel professionals to negotiate the best outcomes for their clients.
“ATIA is committed to a level playing field where all our members including retail, corporate, and mobile agents can compete fairly,” ATIA CEO Dean Long said. “We don’t oppose these major airline partnerships but we are fighting for the safeguards that ensure travel professionals, including the 92 per cent of our members who are small businesses, can continue to negotiate independently.
“The travel trade is responsible for an indirect market worth over $19.6 billion annually, supporting over 19.8 million Australians who choose to book through an expert. When airlines coordinate their distribution strategies, it weakens the ability of travel agents to act as independent advisors.
“We are asking the ACCC to put a ‘referee’ in place so that the travel trade can continue to compare, contrast, and steer demand based on merit, rather than facing coordinated restrictions from the major carriers.”
