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Travel agencies are hard pressed to keep their business profitable
amid the soaring oil prices coupled by the “unpredictability” of
the peso.
The Philippine Travel Agencies Association (PTAA),
through its president Jose Clemente 3rd, said on Tuesday that the
industry has been hit hard by a double whammy—the increases in
fuel surcharges imposed by airline companies and the fluctuations of
the peso.
Clemente said, “Our members’ margins for
profit have been diminishing. Travel agencies are hostage to the
situation and there is not much they can do. They have been
adjusting rates weekly just to stay competitive,” Clemente said.
Although the current situation has yet to result
in net losses, Clemente said some members have reached only
break-even points in terms of profits.
He said further that high-fuel surcharges have
started to affect visitor arrivals into the Philippines.
The PTAA said computed fuel costs represent 30
percent of an airline’s operating cost with fuel surcharge among
domestic carriers reaching anywhere between P1,000 and P2,300,
depending on the destination.
For international flights, the fuel surcharges
range from $100 to $500 and higher, depending on the destination
from Manila.
“Arrivals from primary markets like Japan and
the United States have dipped and we can only conclude that these
stem from the worldwide economic downturn and higher costs of
travel,” Clemente said.
“The continued increase in fuel prices is
forcing people when or where to travel. Consequently, travel
agencies are losing their long-haul markets. Traveling now is
definitely more expensive than it has ever been,” he said.
The PTAA counts 344 member travel agencies
including regional and provincial travel organizations.
-- Katrina Mennen A. Valdez
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