The Kenya Association of Travel Agents (KATA) and national carrier Kenya Airways have finally agreed on a way forward that will resolve the contentious Agency Debit Memo’s (ADM’s) related to churning.
The Association and Kenya Airways have for the past few weeks been engaging in serious negotiations aimed at finding a mutually agreeable solution. KATA CEO Nicanor Sabula said, “we are happy that finally we have a deal that will be beneficial to our members. Specific details of the resolutions will be communicated directly to members.”
Last year, Kenya Airways was among airlines that reviewed their ADM policy and introduced hefty penalties for non-compliance with the regulations. In what was explained as a move towards ensuring revenue integrity, the airlines introduced a raft of measures aimed at curbing inventory wastage. Among them was a new element known as churning which is defined as the act of repeatedly cancelling and rebooking the same or different itinerary for the same or different classes across one or more GDS’s.
Consequently, agents have been slapped with huge penalties that have caused an outcry across the industry prompting the intervention of KATA. The agony and pain experienced by travel agents were laid bare at a recent industry meeting organized jointly between KATA and KQ where agents got an opportunity to share their experiences with KQ officials. “This situation was untenable. It was not going to work because the huge penalties were eating away into the little margins agents were making forcing them to incur loses,” explained Sabula.
This breakthrough is one of the many that the Association has recorded in the recent past even as it works towards achieving the objective of being the defender and protector of the business interests of its members.Back to news articles