Industry federation FAITH was formed a few years ago, after decades of failed attempt. And for so long as the travel, tourism and hospitality industry remained disunited, industry associations have paid the price. The biggest being their ‘relevance’ coming under scrutiny and questioned. Travel Agents Association of India (TAAI) and Federation of Hotel and Restaurant Association of India (FHRAI), the two oldest associations, today being a shadow of their illustrious past, point fingers at the associations themselves. ADTOI that claims to represent country’s domestic tourism segment did not function for close to a year and half because of internal differences, disharmony and court case.
Unity is strength; this is the principle on which associations are formed on. There are many associations today across various tourism sub-sectors. So much so that some feel that there are too many. Take for example TAAI, TAFI and IAAI, all catering to the same audience as was also pointed at the panel discussion at SATTE 2016 on ‘Associations Today: Need to re-invent and re-orient to remain relevant and safeguard members’ interest.’
A timely and topical discussion indeed, the discussion brought forth a pressing need for the association to not only remain relevant and contemporary to the emerging dynamics in the tourism industry but also highlighted various issues ailing the sector and an acute need for the associations to sincerely unite in tackling challenges, where they must, in order to effectively lobby for their rights and demands.
This is the principle, FAITH as federation of various associations in travel and hospitality arena was formed after an agonising wait of decades and several failed industry initiatives. However, associations have remained divided on many issues, take for example their inability to present a united front in their fight for ‘agency commission’ that the travel agents feel is their legal and rightful demand.
Moderated by Aashish Gupta, Consulting CEO, FAITH & Founder, StrategyPluto, the panelists included; Sarab Jit Singh, Vice Chairman, FAITH & Sr. Vice President, IATO; Biji Eapen, President, IAAI; Jyoti Kapur, President, ADTOI; Tejbir Singh Anand, Immediate Past President, ATOAI; Rajan Sehgal, Chairman, TAAI Northern Region and President, IGTA and Guldeep Singh Sahni, President, OTOAI.
Challenges & the Problem of Plenty
Challenges are abundant. If ADTOI members are bearing the brunt of OTAs, onslaught and lack of transparency on rates parity offered by the hotels, ATOAI marvels in equal terms on country’s massive natural resources and their potential for adventure tourism as well as government’s total apathy to the sector.
‘Ticketing’ has a problem of plenty. Travel agents have not one but three associations, TAAI, TAFI and IAAI, to their aid but no respite to their ‘mother of all issues’, a respectable ‘agency commission’, which continues to be a crusade in the making for about last eight years. And probably also little awareness on the merits of an effective ‘communication’ between industry associations, as their apex body FAITH, now in existence for over three years, has just learnt about the remedy of the ill that ails the travel agents most.
As Singh said during the discussion, “We are taking care of this issue with the Government of India on behalf of TAAI and TAFI. And whatever I have heard today and whatever information I had earlier, this is very clear that you three (TAAI, TAFI and IAAI) have to come together, sit for a day, make a complete presentation and then move forward accordingly. Because whenever there is a slight difference here and there, they (airlines) take benefit of it. Whatever Biji and Rajan have said are hundred per cent right and the final decision can be in the industry’s favour. You have to come together. It is a requirement and the need of the hour.”
Anyway, interestingly, he also wrapped up by saying that, “Whatever I have heard today and whatever information I already have, it (there) is something ‘beyond’ this. It (Commission) is possible, provided all three associations sit together, probably pointing to a complicity between some associations’ members and airlines in derailing efforts to bring the three associations together and thereby jeopardising the chances of bringing ‘agency commission’ back in business.
Buck Stops with the Government
However, when it came to inbound tourism the buck stopped at the government doors. India’s lack of competitiveness vis-à-vis other destinations, little support from government on policy issues, difficult environment for the tourist transporters to operate, sky high inter-state road tax, little visibility of Indian tourism products, were some of the challenges highlighted by Singh and Anand in sheer frustration.
Most of the issues where inbound tour operators are stuck are related to the government. Singh said, “Be it a permit required, visa not being issued, or online e Visa service not properly working or payment not getting through. We have to work within the given parameters. We have tried our best and will continue to try our best to reason with the government to start working properly. They recognise that tourism can go up to become a US$30 billion industry. But if you want different results you have to do things differently. When it comes to doing things slightly differently you have to mould your ways and means. But there they don’t even take a single step.”
“We have spent decades together doing things for the tourism sector and achieving nothing. If people like us had put in that much time and effort in our businesses, we would have done much better,” Singh added.
Gupta pointed that despite India being so abundantly endowed, the adventure tourism competitiveness report ranks India in the 90 per cent percentile, that is, at the bottom in a list of 110 countries in the world. So why has India failed to utilise her natural assets?
Anand points to government’s neglect towards the adventure tourism segment, as well as its immense socio-economic benefits that passes on to the remotest corner of the country in the mountains, deserts and forests. He says, “After four to five years of hard labour, we were able to launch ‘777 Days of the Himalayas’ campaign in order to capitalise on the fact that India is home to 73 per cent of the Himalayas but the 777 Days expired and campaign went waste.”
The frustration in the association is definitely there. Anand said, “Association is all about doing ‘kar seva’ like Sarab Jit correctly said.” He expressed that for no gain, association heads spend their own time trying to help members, trying to help the trade, trying to help our country to come out and shine. “One side (inbound) has completely gone to the dogs, one side (domestic adventure market) is doing pretty well, purely because of our own initiatives with no support from the government,” he added.
Divided Trade
IAAI, says Eapen, was formed to fight certain discriminative IATA regulation because of lack of support from other agent associations. With virtually no agency commission today travel agents are dying, especially the ticketing agents. Key IATA and DGCA rules and regulations, even court orders, have not been implemented because of lack of initiatives and unity amongst the associations, he points.
“Countries like Greek has got one month credit facility, then why in India we have weekly payments?” he questioned while further adding, “If we (agents associations) work together, we can do miracles.”
To drive home his point he argued that while IAAI is still fighting the ‘commission’ issue in Kerala High Court in order to have the DGCA and MoCA rules implemented and requested all associations (TAAI & TAFI) to be a part of it only to realise that the associations have given a statement, as Air India has presented it in the court, saying that they only wanted Transaction Fee. “We’d asked the association to come and support but they are not supporting,” he rued.
According to Sehgal, “Some of our members are saying that it is a gone case and the world is changing, but according to me, ‘commission’ and the ‘credit’ is the right of the agent. It is roof and pillar of a travel agency.” We are making a fool of ourselves by saying that the world is changing to devoid agent of ‘commission.’ They (airlines) just want to deal with ten agents and sacrifice the rest of the travel industry.”
So why don’t the associations work together? Sehgal says that the association are not working together, one, because the leaders are not of the same mindset, two, they have to leave their ego at home when they come for the election and, three, they should come with no self-interest.
Greater FAITH
About four years ago nine associations (TAAI, TAFI, FHRAI, HAI, ATOAI, ADTOI, ITTA, ICPB and IHHA) came together to form Federation of Associations in Indian Tourism and Hospitality (FAITH), nine joined initially and IATO came on board a short while later, though it supported the move from the beginning. These associations have remained united, even in the face of efforts to disenfranchise FAITH. Today it is being looked upon with hopes and expectations by many.
And therefore there are others also who want to be a part of FAITH for some time now. IAAI who has long sought to work with FAITH clearly stated so. “We are also a registered firm and a national level association and approved by IATA. Why we have been discriminated and not accepted in FAITH?” questioned Eapen, clearly showing that there are other associations who are willing to be a partner in creating a truly unified industry under FAITH.
“Travel agents have three national associations. We want to sit with TAAI and TAFI and come to a conclusion. Whereas FAITH is the mother for all travel trade and hospitality industry,” said Eapen while adding that IAAI has been discriminately avoided despite being entitled to same rights.
Sahni also argued that FAITH should open up to accept more associations into their body and become a prime body which can bring everybody on a platform. “Their intention is not to enhance anybody’s image but to do a collective effort in tourism. I think that’s the time which is going to be the future of this country. If we will stop now our future generation will blame us and then we will have to take it on us that we were the ones responsible,” he said.
Relevance in Unity
However, the debate’s million dollar question was ‘will the association remain contemporary and relevant amidst challenges thrown by the onslaught of technology, OTAs, Google and the likes and in no less measure by a well-informed customer? There was rudimentary consensus on the need to ‘adapt’, ‘adopt’, ‘evolve’, ‘education’ and ‘innovation’, particularly highlighted by Kapur, Sehgal and Sahni in these words.
Knowing that team works best in synergy, Kapur informs that ADTOI is trying to involve other associations and stakeholders in order to create “close complementing relationship” with hotel industry and transport sector. Essentially a similar echo was stressed by Singh and lamented by Eapen and Sehgal.
Sahni while sharing his fellow panelist anguish said that the associations need to look at resolving the issue collectively. “It’s now time to get together. I am sorry to say that when the time comes to be together, we are not,” he said.
Probably two most important things for the associations to do would be, one, put the house in order, two, create greater synergies, both within and outside. Don’t forget you are only as good as your leaders are.
While concluding the session Gupta’s remarks to the panelists and the industry at large to ponder were, “IT industry has one association that is NASSCOM. Is that the way forward for India (tourism)? Should there be one apex body, or should there be multiple bodies saying the same thing but fragmented? Should we move away from divide and rule that India has always fallen prey to and have one united stand? I think those are issues to ponder.”
A strong reminder of unity could be that the pre-budget parlour with the Finance Ministry that only admits the likes of CII, FICCI, ASSOCHAM and a few top business houses had FAITH also in the audience this year, a first for the tourism sector.
