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Thu, Apr 8th 2010, 00:00
KATA E-Bulletin April 2010ADMs- The Travel Agents nightmare Agency Debit Memos (ADMs) are legitimate accounting tools used by all BSP Airlines to collect amounts or make adjustments to Agent transactions in respect to the issuance and use of Traffic Documents.
ADMs usually result from a transaction initiated by an Agent. Other charges may be billed by ADM, provided there is a prior bilateral agreement with the Agent so debited. Whatever the case, an Agent is entitled to a reasonable period of notice from receipt before an ADM is processed through BSP.
Typical examples of reasons for ADMs, used as legitimate accounting tools include:
· to adjust an incorrect fare calculation by an Agent
· to recall retained commission which is not in fact payable
· to capture a transaction that was not reported by the Agent at the time, through BSP
· for pre-agreed charges payable by Agent
To minimize ADM’s, Travel agents should;
· Systematically and promptly monitor all incoming ADMs – professionals are vigilant
· Check if the ADM meets the Resolution 850m rules- Be watchful
· Check if the ADM conforms to the BSP Airline’s published ADM policy - Check the policy and notices
· Check if the ADM is for a legitimate charge - Be objective
· Check if the revised calculation on the ADM itself is correct
If you disagree with an ADM, inform the Airline contact, in writing, with copy to the BSP manager, giving your reasons and seeking corrective action. If the disagreement is not promptly resolved and the BSP Airline maintains the ADM for processing, you can either accept the impending debit or you can formally dispute it, before it is debited (Resolution 850m gives the deadlines). A duly disputed ADM which remains unpaid will not normally give rise to collective IATA disciplinary action
If the dispute remains unresolved, suggest to the airline in writing (copy to the BSP Manager) that the matter be referred jointly to the Travel Agency Commissioner for a solution (per Resolution 805m, Section 4.10).
Be vigilant and stay informed through various trainings scheduled on this topic.
For further information please contact the Secretariat on info@katakenya.org
Airline Adverts in the local media Consumers of Air Travel have been exposed to adverts by Airlines that can be misleading. The most common Adverts are on fares and promotions which in most cases are exclusive of taxes, fuel surcharge and other add-ons created by the airlines, airports, and regulators. The adverts do not also indicate that the advertised fares are for a limited number of seats or period.
Even when these ads have a “terms and conditions apply” caption, these are often in (very) fine print tucked away at the bottom of the ad and virtually illegible. These terms and conditions are unknown to an ordinary consumer and it thus becomes the Travel Agent’s responsibility to interpret the same. This often causes mistrust between Travel Agents and the travelling public especially when a Travel Agent has to inform the client that the fare advertised is not applicable at the time of booking.
KATA has appealed to all Airlines operating in Kenya to change the way they advertise fares and promotions. In a letter addressed to all Airlines operating in Kenya, KATA requested that the Airlines consider clearly indicating the entire price the consumer must pay; including all fees and charges and other conditions e.g. seat availability.
We hope to see some positive change in Airline advertising.
Online payment solutions
In our last e-bulletin, we informed you that we were negotiating rates with two providers of online payments solutions. Below please find an analysis of the same to help you make an informed choice
Eran of Enoyaone Ltd will be in Nairobi the week of 14th to recruit KATA members
KATA holds Rift Valley Regional Meeting
KATA held its first ever Rift Valley regional meeting on the 24th March 2010 at the Cathay Hotel, Nakuru. All IATA Travel Agents and other Travel Agents were in attendance. The meeting was sponsored by Galileo Kenya.
At this meeting, Participants were reminded of the role of the Association the need to adhere to the Association’s code of ethics and professional standards. KATA also took this opportunity to highlight its achievements in the last six months.
New KATA Members 2010
Allied Members- Dean’s Travel, Timeless Travel
Industry Partners - Chartis Kenya, Metropol East Africa, Heritage Insurance
We take this opportunity to welcome our New Members
Important dates
21st April- Credit Management Training
24th April – Understanding and Minimizing ADMs (Tentative)
5TH June 2010 - KATA Annual General Meeting
Kindly Diarize
New!!!! Kenya Travel Agents Guide is now in circulation. Copies will be delivered to your offices by 12th April 2010 ©KATA
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