IATA agents to be hit by a significant IATA fee increase

IATA plans to change the delivery system of fees received from travel agents to adjust to the Swiss franc. The amendment, which shall enter into force in January 2012, will involve increased rates by 25 percent on average in Europe, according GEBTA Europe president, Michel Durrieu.

IATA's decision was taken at their conference on 11 and October 12 this year. Representatives of travel agencies have criticized the measure was taken without even being given an opportunity to review the proposal.

IATA has decided to adjust its fees globally to the Swiss Franc, which exchange rate has been exceptionally high in the last months. The adjustment will be reflected in the annual fee invoice that accredited agents will receive shortly. Said the President of GEBTA Europe, Michel Durrieu: “We are expecting a fee increase around 25% in average inEurope. This is very unwelcome in regard of the economic environment and considering a blatant lack of justification”.

The fee adjustment is not linked to any change in the service level offered by IATA. Besides, the IATA Passenger Agency Programme has carried out significant economies of scale in recent years, with the centralisation of IATA services in Madrid and the switch to a 100% electronic ticket environment. Airlines have benefited from these savings, with BSP unit rates charged to airlines having fallen 78% between 2000 and 2010. With an increase of agents’ fees, while airlines’ costs have been reduced, agents will bear the burden of financing the IATA Agency Programme.

GEBTA considers that an increase of IATA fees is unacceptable in these conditions. It calls IATA to rescind its decision and review the proportionality of its fees.