According to WTAAA, the decision undermines local
governance structures and risks damaging collaborative relationships between
airline and travel agent representatives at market level.
In a recent mail vote of the Passenger Agency Conference, IATA airline delegates
approved the enforcement of a globally aligned remittance period by mid-2026.
The change removes the ability of local markets to agree alternative remittance
dates through their Agency Programme Joint Councils (APJCs).
APJCs, which are made up equally of local airline
representatives and IATA-accredited travel agents, have traditionally been
responsible for setting billing cycles and remittance timing in accordance with
local market conditions and established business practices.
Under the new decision, all BSP markets will be required to adopt standard remittance periods at the end of each billing cycle, regardless of any locally agreed arrangements previously reached between airlines and agents. Agent representatives argue that a global forum composed solely of airlines should not be able to override agreements negotiated jointly at local level.
Within the BSP framework, IATA-accredited agents remit
funds centrally to IATA, which then distributes payments to participating
airlines based on ticket sales. WTAAA notes that shorter and rigid remittance
periods increase the need for agents to pre-finance customer bookings and
advance funds to airlines before corporate clients have completed payment.
Locally agreed remittance periods are designed to
reflect national payment cultures and established corporate settlement
practices, which vary significantly between markets.
WTAAA also highlighted what it describes as a
structural imbalance in the governance of the Passenger Agency Programme,
noting that binding resolutions are adopted exclusively by airlines, while
agents hold consultative status only. The removal of local flexibility on
remittance periods is cited as an example of this imbalance being used to
override negotiated local solutions.
“By depriving national markets of their ability to tailor remittance schedules
to local needs, the global alignment decision disregards longstanding local
relationships between airlines and agents and ignores the operational realities
of diverse business models, including high-volume corporate and tour operator
accounts.” said Otto
de Vries, Executive Director of WTAAA.
WTAAA has called on IATA and its member
airlines to restore the ability of local APJCs to determine remittance periods
in line with billing cycles and local financial criteria, in keeping with their
historical role.
Tags: IATA Otto de Vries, World Travel Agents Associations Alliance (WTAAA)