The decision was taken at a meeting in Mumbai by the country's three top travel associations - the Travel Agents Association of India, Travel Association Federation of India and Indian Association of Tour Operators - representing over 4,500 IATA-accredited international and domestic agents and more than 85 per cent of the total air ticketing business.
The associations said they would stop selling tickets if a meeting between the agents and leading airlines scheduled for July 24 in Delhi did not come out with a solution.
The move could impact air travellers, who may face problems booking or cancelling tickets only through company-owned ticketing counters or through the internet, which is not a popular option for international travel.
Airlines have been giving agents 5 per cent of their base fare on the tickets as commission, a recent reduction from the earlier 9
"This zero-commission is the question of our very existence," said Sunil Bijlani, a travel agent from Mumbai.
Agents question the premise of doing away with the commission and cite examples of Australia and Japan, where the commission is still 9 per cent. "Airlines like British Airways and Singapore Airlines are profitable. Why do they not want to pay us?" questions Hari Devnani, a travel agent.
Airlines in Pakistan recently introduced zero-commission for the agents but reversed the decision within a week.