NATAS announces industry initiative in response to SIA's net fares

With Singapore Airlines (SIA) set to introduce net fare ticketing on September 16 to the local market, after a one-month delay, the National Association of Travel Agents of Singapore (NATAS) is poised for action.

It has called an urgent press conference for 2pm tomorrow (Wednesday, September 6) in which it says it will make an "announcement on the strategic directions needed in relation to the SIA e-commerce and net-fare issue".

The invitation reads, "This new initiative has a tremendous impact on the travel industry and people who travel. NATAS has consulted its members and is issuing a response to this current effort by SIA to make Singapore a more efficient business hub.

"Our industry response will have an impact on all travellers using SIA, and other airlines."

NATAS' ticketing committee, headed by KY Chung of P&O Travel, has been having several meetings on the issue to determine the association's response.

According to one source, NATAS is concerned that with SIA's introduction of net-fare ticketing, the message might come across that agents will no longer be able to mask real air fares in packages, hence giving consumers the impression that agents have been fleecing them in the past through mark-ups.

NATAS is understood to be keen to correct perceptions that agents, as middlemen, have been making lots of money off consumers.

Said one industry player who declined to be named, "There have been so many changes in the industry which are driven by the airlines, including net fare tickets. Agents must somehow come to terms with these changes.

"But we cannot let consumers run away with the idea that agents have been making tons of money through mark-ups.

"We need to inform all parties and make sure that the changes are understood by all. We must state NATAS action plan and prepare members to do business in the new trading environment.

"Airlines are moving towards transparency. But consumers must be aware what it all means. It is not about airline fighting agent. We have to talk to the consumers, they are the ones driving the changes." When contacted, P&O's Chung said NATAS' plan was "more to brief people on what is happening in the industry and to make clear our position" and "not such a defensive stance as to say we have been making money off customers in the past".