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Latest News in Romanian Tourism Tarom Cuts commission At the beginning of
May, Tarom, announced that it will significantly reduce its commission
givven to travel agencies for the sales of flight tickets. The competition
between travel agencies heats up as their existence is pushed to the bare
edge. The same decision is expected from the rest of the airline operators. The sale of e-tickets is growing every year, but the commissions given by the airline operators began to disappear. The first step in Romania was made by the national flag carrier, Tarom. Tarom reduced its commission given to the travel agencies from 7% on 1%, leaving the latter scramble for leftovers. Practically, until now, all the agencies were receiving a 7% reduction on Tarom's tickets, so the prices were more or less the same in all the agencies. The airline ticket makes a great deal of the tourist agency revenue, even more important than the services it provides. Catalin Zlota, Tarom's Commercial Director, declared that, the decision for reducing the commission was not taken over night. It is just following the current trends in the world of airline travel, a movement that began in the US and continued in Western Europe several years ago. As mr.Zlota referred, Tarom has announced this decision since 2004, but in that year the airline industry was still not recovered after the events on 11th September and the SARS epidemy. The announcement created a panicle reaction from the travel agencies, which claimed that they weren’t, consulted prior this decision. 167 travel agencies, members of ANAT (national association of travel agencies), with over 240 points of sale, are representing 72% of the total sales of airline tickets for Tarom in Romania.
Lucia Morariu, first vice-president of ANAT, said that the example given by Tarom will soon be followed by the rest of the airline operators, which will in short time eliminate the commission. This will heavily affect the travel agencies network form Romania, which will be obligated to lose the principal source of income.
Catalin Zlota from Tarom, answered with irony on this statement, declaring that travel agencies should be happy about this decision, because by not receiving commission, they will have to improve their services in sense to satisfy clients. Leaving only quality agencies survive. He also mentioned that Tarom will continue to give bonuses to agencies whose ticket sales performance is good.
Alin Burcea, the president of Paralela 45 travel agency, said that the reduction of commission from 7 to 1% is a European tendency, Tarom should have just waited with the decision until 1st of January 2007.
Simon Alb, Director of the National Tourism Bureau of Romania in America, believes that the reduction of the commission was a drastic measure but any tourism agency owner would’ve made the same move if he led an airline company. He also mentioned, that it doesn’t strictly mean the end of the airline ticket distribution through travel agencies. Travel agencies could offer better prices if they obtain special prices from the airline company. In the States, a travel agency is profits 20-25$ for a single ticket reservation.
Indifferently how
many agencies will disappear in the following years, one thing is for
sure; many of them will have to become more than just a simple ticket
office and start practicing what they really do, that is tourism.
After leading Austrian
Airlines' Romania and Moldova corporate plans for eight years, Wolfgang
Groeger leaves Bucharest to continue his work for Austrian Airlines in
Baku, Azerbaijan. Beginning with the first week of May he will be replaced
with Heinrich Vystoupil, who was Austrian's Country Manager for Slovakia. During Mr. Groeger's
time in Romania, Austrian introduced code share flights with Tarom and
increased the number of flights between Vienna and Bucharest from one
to four daily. Further increases of flights include Timisora and Chisinau
as well as the introduction of direct flights between Vienna and Cluj,
Sibiu and Iasi. Air Transportation
Company Wizz Air will start its activity from the Transilvania Airport,
located in Targu Mures, said the president of the Mures County Council,
Lokodi Edita Emoke. The amount will be included in the budget of the Ministry of Transport, Constructions and Tourism and will be divided on annual budget exercises. Thus, in 2006, RON 136.4 M are to be allocated, in 2007, RON 32 M, in 2008, RON 0.95 M and in 2009, RON 0.33 M. Oana Marinescu also said that the Ministry of Transport had presented a report on the state of play of a number of infrastructure projects. The MTCT estimates to conclude the modernizing of 35 km of the Bucharest-Pitesti motorway in December 2006 and to widen the Otopeni Crossing to six traffic lanes, the ramps included, and the road between the Otopeni Crossing and the Otopeni Airport to six lanes, as well by June 2006. Works on National Road 6 from Timisoara to Lugoj are expected to be completed in December 2006. Two road segments on National Road 6 between Craiova to Drobeta Turnu Severin will also be finalised in November 2006. The bypasses in Timisoara and Craiova are expected to be completed in November 2006 and December 2006, respectively. As far as Cernavoda
- Constanta motorway segment is concerned, companies interested in providing
consultancy and technical assistance to the works must submit their letters
of intent by June, 2, according to MTCT. The General Board
of Shareholders of S.C. CONTINENTAL S.A. decided to change the company’s
name, thus the only Romanian chain of hotels was registered at the Commerce
Registry Office under a new name: S.C. Continental Hotels S.A.
The Vice-prime minister,
George Copos, shared his opinion that a Ministry for Tourism is essential
for Romania's economy. This body would elaborate a coherent strategy for
developing Romania's ailing tourism industry. |
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