Keeping you abreast of what's going on in the
Japanese travel and tourism industries.
News consolidated by Travel Vision, Inc. updated every week.
JATA Requests Airlines to Make "New IT Fares" in Time for Spring/
Summer '09 Tours Series to Settle Fuel Surcharge Issue End-May 2008
Japan Association of Travel Agents (JATA) sent a letter, signed
by Takashi Sasaki, chairman of Overseas Travel Committee, to all
carriers serving Japanese gateways, making a request to settle the
oil surcharge issue. It was sent to Japan Airlines and All Nippon
Airways on May 7 to the attention of the president of each, and to 60
foreign carriers on May 9 to the attention of their representatives
in charge of the Japan market.
The letter contains three arguments: (1) a solution must be made
not for the convenience of travel agencies nor airlines but for the
benefit of consumers, (2) an alternative method should be the one
that does not require travel agencies of the extra labors for
collecting the charges, and (3) airlines are requested not to impose
surcharge money as an add-on but to include it in the fare system.
The letter further recommends the following four points for early
implementation: (1) to introduce "new IT fares" inclusive of
surcharge for package tour making, (2) to establish a gross pricing
method based on the published fares to include surcharge, and make
the surcharge portion commissionable for the agency, (3) to stop
levying surcharge on infants, and (4) to fulfill accountability on
the part of airlines by enhancing public relations activities.
* Travel agencies and airlines to start negotiation individually.
Note how things will develop after July
In framing new IT fares, JATA, a trade organization, is not in a
position to make specific negotiations with airlines as such conducts
mean a violation of anti-trust law. Travel agencies are left,
therefore, to sit at table for individual negotiation with airlines.
They usually begin merchandising and sourcing for the next spring/
summer tour series from July, so the negotiation between the two
parties will likely become heated around that time, and there will be
some signs showing how things are going to be shaped.
It often happened in the past few years, however, that the
negotiation prolonged and IT fares were agreed only in December, so
this year again it might take as much time as it used to. It is yet
to be seen how Japan Airlines and All Nippon Airways, two giants in
the market, react to the request of integrating surcharge to the fare
system.
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