Smaller travel agencies in Sri Lanka are beginning to feel the pinch after SriLankan Airlines scrapped agent commissions since July 1.
Sasi Ganeshan, managing director of a travel firm, foresees that smaller ones are likely to fold up. “More people are buying online where the rates are cheaper than what we offer sans commission,” he explained.
The five per cent commission, which has been in force for decades, was originally intended to be phased out from April this year but was delayed after appeals from agents.
Agents have since introduced a service fee which varies depending on the the fare. P Muralitharan, director at Pan Global Travels, said while the sum is nominal, clients are questioning the rates and some now prefer booking online.
A spokesperson for Ceycan Travel and Tours added that while some “‘faithful” clients still purchase tickets through the agency, “it’s becoming very competitive and challenging to keep our heads above water”.
