KATA E-Bulletin March 2010

KATA to launch Annual Training program on 27th March 2010

This month KATA officially kicks off a formal training program in conjunction with our Industry Partners. By teaming up with Industry Partners to facilitate these training interventions, we have managed to make training more affordable and as such anticipate that these courses will be very well attended and the perennial challenges that Travel Agents face greatly reduced. Managing Directors and General Managers are encouraged to release their staff to attend these trainings.

These courses are specifically tailored to meet the needs of KATA Members. In our discussions with Members, we have highlighted a number of recurring problems and have come up with possible solutions. A brief introduction of the respective courses is as follows:

Understanding and Minimising ADM’s

Travel Agents receiving ADM’s are not always able to understand or interpret the reason for the ADM and know if they are able to dispute it. This seminar has examples of a variety of reasons for actual ADM’s and each case scenario is discussed and interpreted as to why the ADM was received and how it could have been avoided.

Credit Management

Are you aware of the aims and importance of a good credit management system? Do you communicate effectively at all levels internally and externally? How well equipped are you to exceed targets and increase profit? This training course aims to instill a culture of strong and effective credit management systems that will ensure that a high proportion of customer bills in the Travel Industry are paid on or before the due date thus improving the Travel Agent’s performance, profitability and cash flows.

Domestic - Reissues/Refunds/Virtual MPD’s seminar

This course enables the Domestic Travel Professionals understand and interpret the penalties or changes paragraph in a fare rule and correctly calculate and process the ticket exchange or refund of either unused or partially used domestic tickets.

Branding and Marketing Strategy

This course will help individuals and organizations create and implement programmes that set their organization apart. It is also designed to provide skills, processes and ‘best practice’ tools to create and define brands and effectively engage, win support from and manage the organization’s stakeholders. It shows how to win support from the organization as a whole – so people really understand what the brand is about, feel part of it, understand their role and are motivated and equipped to delight customers.

International – Refunds Calculations seminar

Since the inception of GDS Refunds, Travel Professionals are expected to be able to calculate and process all refunds. Without a sound knowledge of international fare calculations this becomes a very difficult or impossible task resulting in many ADM’s being received. This course covers – Historical fares/ Definition of Components/ Pricing Units/ Journeys/ Calculations and processing of Refunds.

The Owner- Manager & The Human Resource function

This course provides important knowledge and skills you can use immediately in your day-to-day job i.e. Human Resource Management, Labour Laws, Recruitment and Selection, Compensation and Benefits, Employee Development and Performance Management. This course will assist Travel Agent Owners understand their role in Human resource Management

International Reissues /VMPD seminar

This seminar is targeted at the Expert level Travel Professional. Attendance will enable the Expert Travel Professional understand and interpret penalties or changes paragraph in a fare rule and correctly calculate and process the ticket exchange of both unused and partially used tickets, including Foreign Currency re-issues. The seminar covers multi airlines or different pricing units and mixed fare bases.

The Training calender will be circulated by 8^th March 2010

I&M Bank launches online payment & E-Commerce solution

The new merchant e-payment service, which allows merchants to accept online payments through credit and debit cards on their websites, is expected to boost e-commerce in Kenya

I&M Bank, a leader in banking technology, has become the first bank in Kenya and East Africa to launch E-Commerce online payment service. This is a new payment platform that will enable online card payments to all Kenyan businesses that subscribe to the service.

KATA is in the process of negotiating set up fees and applicable rates and will advise members once a deal has been sealed

18 Serial defaulters in the Travel Industry blacklisted as at 28^th February

KATA members continue to benefit tremendously from the services of Metropol East Africa. There has been success mainly in the area of debt collection with some members recovering debts owed by their clientele for years. Where there is no possibility of recovery because debtors have either closed the business, relocated overseas or offered an unacceptable payment plan, KATA Members have recommended that these companies be blacklisted.

18 Companies have so far been forwarded from KATA to the CRB database. To access list of blacklisted Companies please subscribe to Metropol’s analytics system online access to input data and pull out reports from the data base.

KATA members are advised to inform their corporate and individual clientele that Members of the Association share credit performance data with Metropol East Africa.

Members are reminded to have all their records in order to facilitate recovery.

Revenue models for Travel Agents- Dynamic shift is needed in Kenya

The revenue model for most Travel agencies in developed countries is no longer largely dependent on airline ticketing. These agencies are now selling holidays, foreign exchange, travel insurance, cruises and hotel-stays, among other travel-related products and services.

A recent survey carried out in the UK showed that of all non-air services offered by Travel agents, hotel, rail and car rental bookings are the most widely requested. Agents polled felt that the success of non-air sales was primarily driven by the level of commissions offered by such service providers which prove to be a valuable source of additional revenue.

The trend in Kenya is however different. It is estimated that 92% of Travel Agents revenue is mainly generated from ticket sales. While making his closing remarks at the UFTAA Congress 2009, The UFTAA President William Tan encouraged Travel Agents to broaden their product offering and focus their energies on non-air services. He noted that the Air ticketing accounts for less than 9% of the total World Tourism revenue. This sector is the most regulated and with diminishing returns. He encouraged Travel Agents to venture more into non-air products and services that have higher commission regimes and fewer rules.

A majority of Travel Agents adjust to RTGS mode of payment

While most Agents have complied with this new directive, the Industry continues to witness transitional challenges. In the February BSP cycle, a number of Agents’ payments were not received by remittance date both in Kenya Shillings and US Dollars. For some, it was a delay caused by the bank, while for others RTGS instructions were sent to the Bank after the cut off time and could thus not be effected on the same day.

As mentioned earlier in our urgent bulletin dated 7^th January 2010, the implications of late remittance are serious and not worth the hassle. When an Agent is declared in default and a demand letter is issued, the concerned Agent is required to pay the remittance due in full up to the date the demand letter is issued.

Upon settlement of all dues, the Travel Agent has to apply for ticketing authority from each and every Airline. Reports show that the timeframe for this exercise varies from Agent to Agent, but on average it could take up to three weeks.

Even worse is the fact that an Agent in default must revert to bank guarantee for a period of 2 years from the date of reinstatement of credit.

KATA thus wishes to encourage Members to comply with IATA’s remittance rules communicated earlier to avoid the hassle mentioned above. Please feel free to communicate your concerns and challenges in any given month and we will be happy to assist where possible.

Annual Subscriptions due

KATA members are reminded to settle their 2010-2011 subscriptions on or before 1^st April 2010 as per invoices

©KATA