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IATA accreditation on their minds

To be or not to be is the question that most sub-agents ask themselves. While IATA accreditation brings a plethora of advantages to the sub-agents, they fear that it might translate to loss of freedom of operations. They talk to S Nithya Kamakshi about their dilemma.

The business of travel has more to it than merely watching happy faces thank you for a well-planned itinerary and raking in the moolah. The fact of the matter is that the going for sub-agents is getting tough and they are left groping in the dark for survival.

Gone are the days when sub-agents were content to just straddle along. The new mantra is to get an IATA accreditation and become on par with the rest of the business community.

But the path to accreditation is perforated with stringent rules and regulations, especially if one wants to qualify for membership to official bodies. The industry is replete with official platforms like IATA, TAAI, IATO and SKAL and when it comes to air travel, IATA unquestionably rules the roost domestically and internationally. It is one of the principal voices of the air transport industry and holds an important and influential position in this industry.

The IATA seal

In this industry rife with trade associations, sub-agents hold a significant position with a population five times that of the IATA-accredited agents. But with this comes an abundance of problems, as many sub-agents complain of being treated badly by the airlines and refused access to competitive rates and discounts that they offer, and denied perks that are received by IATA-affiliated agents.

Due to this, many agents crave for the IATA seal. The main advantage of being an IATA agent is the immediate access to tickets. Venkat, CEO of Alliance International, says, "The term sub-agents itself clearly states our community as 'sub', inferior to the IATA agents. We do not have proper access to information enjoyed by the IATA agents. However, in reality and for all practical purposes, it is the sub-agent community, which ranks first in terms of sales and the IATA agents depend on sub-agents. The main hurdle in all this is posed by the airlines. They do not look at the sub-agent community as reliable, although finally it is we who get the job done for them. We are waiting to change our status to IATA since that will make booking tickets easier for us. Another reason for this decision is to upgrade our business and be on par with the IATA agents."

Venkat is not alone in this. Another agent from Al-Ain Travels who wants to get the IATA seal says his agency is only waiting to become financially sound before applying for it.

Responsibility with credibility

While the importance of IATA's accreditation is undisputed, there is little doubt that with the qualification come a host of responsibilities. With the seal, the agencies are branded with a mark of trustworthiness and they have no choice but to gear themselves up, financially and otherwise.

Ashraf, proprietor of Skyline Tours & Travels, says, "As a sub-agent, one has to always be aware of the latest updates in the industry. Here, everyone tries their best to stay ahead of the game and there are no friends or enemies. Being a sub-agent makes life even more miserable due to lack of information and the blame game. It is always much better to be on the safer side and that is why most of us are opting to become an IATA agent. This way you get good reputation as well as business."

Another reason for them converting to IATA accreditation is the claim that they are still not given due recognition in the industry. Hari of Kaveri Travels, opines, "Sub-agents do not have proper access to information both from the airlines and the CRS, which is highly biased towards IATA agents. They give out only the bare minimal details to the non-IATA agents. Due to this lack of information, the sub-agents are forced to bank on IATA agents for information, who in turn enjoy more clients than sub-agents."

He adds that his counterparts are often treated as non-entities in the market, especially when there is less ticketing. This is the main reason behind the dwindling number of sub-agents in the country. However, in spite of the rigid rules and high cost factor, most sub-agents prefer to get an accreditation than just fade away.

Other side of the fence

Those on the other side of the fence, however, have a different story to tell. Contrary to popular belief, not every sub-agent in India wants to become an IATA accredited agent. This small section of sub-agents shows sympathy for IATA-accredited agents because of host of regulations that they are liable to fulfill.

Many sub-agents are of the view that accreditation translates into loss of freedom of operation. Take the case of Mani of King Travels, who strongly feels that, for the purpose of security, IATA dictates even minute details, like the kind of lockers to be used by an agent. "As per their regulations, each approved agent must keep the supply of unissued traffic documents under lock and key in a steel safe weighing not less than 182 kg and bolted, cemented or otherwise secured to the floor or wall to prevent movement within or quick removal from the premises. Such lack of freedom and constant monitoring leads to frustration," he adds.

The sub-agents, however, admit that today these rules have been relaxed. Nevertheless, the one stipulation that has remained unyielding and which poses as a major hurdle to many sub-agents is the financial factor. While a majority of agents aspire to become IATA accredited, many are just content with their status quo. The main reason frequently voiced for this is the money involved. The view resonant among non-IATA agents is that right from the membership fees to the dreaded Billing and Settlement Plan (BSP), monetary demands on accredited agents simply add too much pressure; being an IATA agent is no child's play. Looks like that at this rate we may be left with only a handful of sub-agents to assist the IATA agents.