Travel agencies run to govt. for help

CNMI travel agents have imposed a 5-percent service charge to each ticket sale to redeem the 5-percent commission removed by Continental Airlines and Northwest Airlines last March.

This, according to officials of travel agencies in the Northern Marianas, was an option taken to help them defray operational costs without disrupting services to the traveling market.

The decision came after CNMI travel agents asked Continental and Northwest to refrain from opening retail activities that would limit the sale of over-the-counter tickets due to their decision to discontinue the commission given to travel agents selling tickets to travelers.

In a letter to Gov. Juan N. Babauta and members of the 13th CNMI Legislature, Saipan’s 13 active travel agency officials implored government heads to assist them in any way possible.

The group disclosed that a committee will be created to conduct an in-depth analysis to ascertain what would be a fair percentage. “This must be done to ensure that we meet our payroll and pay administrative and other operating costs. And because we are a business, we need to generate some semblance of return for our employers.”

The letter, signed by the Getaway Travel Agency, CNMI Travel Agency, Express Travel Agency, Hafa Adai International Travel Agency, Marianas International Travel Agency, Century Travel, Inter-Kam Travel Agency, Pacific Sky Travel Agency, Western Travel Agency, Pacific International Travel Services, World Tour Travel Agency, Travel Bag Agency, and Tasi Tour Travel Agency, stressed that the discontinuance of the commission payment threatened the ticketing industry.

“The recent decision of Continental and Northwest Airlines to discontinue the payment of commission had the airlines ticketing industry scrambling to adopt a viable economic solution so that the employment and economic benefits that this industry provides our local community may continue,” the group pointed out.

Following the decision of the two airline companies to discontinue the 5-percent commission, travel agencies on Saipan laid down a concrete plan to prevent the disruption of services to the traveling public.

“The CNMI cannot afford to see the demise of an industry that has for so long provided employment for so many people and provided economic benefits to our community and the government,” the travel agents stressed.

In addition, the travel agents also asked the two airline companies to cooperate by not opening retail activities and limit the sale of their tickets to their over the counter activity at the airport.

“As in the sale of any manufactured products, manufacturers do not usually retail the sale of their products. We would like to see the same principle applied in this regard. After all, we have been pre-qualified and paid a fee to be an approved agent and, at the same time, licensed by the CNMI government to engage in the business of selling airline tickets and other travel passes,” the group said.

Further, the agents explained that even the government has continuously purchasing tickets for official and medical referral travels through the issuance of Travel Authorization and GTRs but the policy does not allow for the sale of airline tickets under a credit purchase agreement.