Tour operators have split from the Irish Travel Agents' Association (ITAA) to form their own lobby, claiming their views were not represented.
The Irish Tour Operators Federation said the nine biggest companies in the sector - with some 95 per cent of the business - had joined. They are American Holidays, Budget Travel, Crystal Holidays, Falcon/JWT, Flyaway Tours, Panorama & Airtours Holidays, Sunway Holidays, Sunworld and Topflight.
The federation represents firms operating air charter holidays, as distinct from those retailing holidays. It will rival the ITAA, whose website claims it represents 20 tour operators and 370 retail firms.
The federation's part-time chief executive, Mr Flan Clune, said it had been established because operators were unhappy with the ITAA.
Mr Clune is a former public relations manager at Aer Rianta, the State airports body. He said: "There's been some discontent. They don't feel that the Irish Travel Agents' Association represents them."
Mr Clune said one of the principal aims of the federation would be to prevent the imposition of value-added tax on package holidays. While the EU wants to impose VAT, a derogation applied to the Republic, Britain and Denmark.
The federation would seek to protect that status in partnership with its international counterparts. It will seek a meeting with the Minister for Transport, Mr Brennan, soon.
The chief executive of the ITAA, Mr Brendan Moran, did not return a call to his office yesterday afternoon.
The association was established in 1970. It claims to represent some 80 per cent of travel agents in the State.
The managing director of Panorama & Airtours Holidays, Mr Niall McDonnell, is inaugural president of the new federation.
He said: "We intend to ensure that governments, regulatory agencies, airlines, airports and others fully take into account our views and concerns and those of our customers so that we may all provide a better service to Irish holiday-makers going overseas."
Mr Clune said the federation would be funded initially from a €1,000 stipend paid by each of its members. It will operate from an office currently occupied by Panorama & Airtours Holidays.
The federation's council comprises Budget Travel managing director Mr Eugene Corcoran, Sunway Holidays chairman Mr Jim Furlong and Falcon/JWT chief executive Mr Bill Smith.
