Trade group the Association of Indonesian Tour and Travel Agents (ASITA) has made good on its threat to boycott flag carrier Garuda Indonesia over reduced commissions.
ASITA chairman Asnawi Bahar has ordered all ASITA affiliated agents not to deal with the airline while it seeks to resolve the issue.
"During the period to resolve the problem with Garuda Indonesia, ASITA Indonesia has decided that all ASITA members are prohibited from participating in any activities involving Garuda Indonesia," ASITA said in a letter addressed to all agents.
ASITA warned that Garuda plans to cut ticket sales commissions from 7% to 5% for international flights and from 5% to 3% for domestic.
ASITA represents more than 6,000 tour and travel agencies members across the country.
Garuda’s corporate communications VP recently confirmed the commission cut but depending o the market, it could be a temporary measure.
"We are adjusting the business pattern with our travel agent partners. The business situation is changing really fast, with online travel being much stronger but we will also want to keep agents," he said.
