A ticket issued with the wrong fare, an incorrectly calculated tax, or a booking left active after a ticket is voided can expose a travel agency to costs that extend well beyond the original transaction. For travel agencies, financial risk doesn’t end when a passenger receives an electronic ticket. Airlines continue to audit bookings, ticket issues, exchanges and refunds, with discrepancies potentially resulting in Agency Debit Memos (ADMs).

An ADM is an accounting instrument airlines use to recover adjustments arising from electronic tickets and refunds processed by travel agents. Under the International Air Transport Association’s (IATA) Billing and Settlement Plan (BSP), the memo is issued through BSPlink and, once its lifecycle is completed, becomes part of the agency’s outstanding amount due on its BSP remittance date.

IATA’s BSP Manual for Agents, effective September 2024, identifies ADMs as a formal part of the airline-agent settlement framework. The manual also requires agencies to monitor BSPlink regularly because debit memos and related communications are made available through the platform.

The potential exposure is wider than incorrect ticket pricing. Fare under-collection, missing or incorrectly collected taxes, commission errors, incorrect refund calculations, unauthorised card transactions and failure to comply with airline-specific fare conditions can all lead to financial adjustments.

Kenya Airways provides a practical illustration of how these rules translate into agency costs. Its published ADM policy, updated in June 2023, identifies a range of violations and associated recovery charges. These include a US$50 charge for certain missing or incorrect contractual ticket information, US$50 per segment per passenger for incorrectly booked special service requests, and a US$100 charge per passenger for duplicate passenger name records.

The same policy identifies speculative bookings, repeated cancellations and rebookings, incorrect ticket plating, uncollected taxes and misuse of fare conditions among practices that can trigger debit memos. It also provides for recovery of fare differences and additional charges in specified circumstances.

The figures are specific to Kenya Airways’ published policy and should not be mistaken for standard charges across all airlines. IATA advises agencies to consult each carrier’s ADM policy because the circumstances and administrative fees differ between airlines and can also vary by market.

The cost of getting voids and refunds wrong

Voiding and refunding are two areas where timing and procedural accuracy matter.

According to the IATA BSP Manual, agents can void tickets through their ticketing system provider or global distribution system on the same day they are issued, up to midnight. A ticket that falls outside the applicable voiding window generally has to be handled through the relevant refund process, subject to the airline’s rules.

Refunds are not simply the reversal of a payment. The agent must follow the airline’s instructions, use the same form of payment as the original transaction and ensure that the refund is calculated according to the applicable fare conditions. The BSP manual also states that an agent cannot refund a transaction issued by another agency.

There is also a direct effect on agency earnings. Where a ticket is refunded, any commission claimed on the original transaction must ordinarily be returned to the issuing airline, unless the carrier specifies otherwise.

Errors in processing refunds can therefore create additional reconciliation work, delay the return of money to customers and expose agencies to further adjustments. Where an agency is uncertain about the correct refund calculation, IATA provides for the use of a BSPlink Refund Application, through which the airline can review, amend or reject the request.

The importance of disputing an ADM

Receiving a debit memo does not necessarily mean that an agency must accept the amount without question. IATA provides a formal dispute process through BSPlink.

Under the September 2024 BSP Manual, an agency has a 15-day period from the date an ADM is issued to register a pre-billing dispute. The airline then has 60 days to accept or reject the dispute, or adjust the amount. If the matter remains unresolved after the ADM has entered billing, an agency may still raise a post-billing dispute within 12 months of the transaction date, subject to the prescribed requirements.

However, a post-billing dispute does not automatically suspend payment. The manual states that the agency must remit the full billed amount, including the disputed amount, while IATA holds the disputed sum in escrow for 30 days to allow the parties to resolve the matter.

This makes record-keeping particularly important. Ticketing records, fare calculations, passenger communications, payment authorisations, airline correspondence and evidence of changes or cancellations can determine whether an agency is able to substantiate its position.

Ticketing compliance is a business-control issue

The risks extend beyond the ticketing desk. Kenya Airways’ published booking policy applies to bookings made through GDS platforms and direct connections, including reservations that are never ultimately ticketed. It prohibits practices such as duplicate bookings, speculative reservations, churning and circumvention of ticketing time limits.

The airline’s ADM portal also makes clear that agencies and other GDS subscribers are responsible for ensuring their employees, agents and contractors understand the relevant booking and ticketing policies.

For agencies, this places greater importance on staff training, daily monitoring of booking queues, accurate passenger information, timely removal of inactive segments and proper authorisation of refunds and exchanges.

The financial implications can be significant because a ticketing error may involve more than the original fare difference. It can generate a debit memo, administrative charges, additional staff time and a customer-service problem that damages the agency’s relationship with its client.

As airlines increasingly use automated systems to monitor bookings and audit ticket transactions, agencies need to treat ticketing accuracy as an operational and financial control rather than simply an administrative responsibility.

For the travel trade, the real cost of an error is therefore not always visible at the moment a ticket is issued. It may emerge weeks or months later, when an airline audit turns a small discrepancy into a claim against the agency.

IATA accreditation is not a universal requirement for accessing airline New Distribution Capability (NDC) content. However, booking access, ticketing authority and payment settlement are three different things, and smaller travel agencies need to understand the distinction.

A travel agency does not necessarily need IATA accreditation to participate in the growing NDC distribution market. Airlines can authorise non-accredited agencies to access their content through direct booking portals, global distribution systems (GDS) and technology aggregators.

The distinction is becoming increasingly relevant in Kenya following Kenya Airways’ decision to extend access to its NDC content to eligible non-IATA agencies through Amadeus.

The arrangement allows qualifying agencies to search, price and book Kenya Airways’ NDC offers within the Amadeus platform.

However, the opportunity comes with an important qualification: accessing airline content does not automatically confer ticketing authority or access to the industry’s centralised settlement system.

First, what is NDC?

New Distribution Capability is an XML-based data transmission standard developed by the International Air Transport Association (IATA) to modernise airline distribution.

Traditionally, airlines distributed fares and inventory through GDS platforms. NDC enables carriers to present richer offers, including different fare families, seat selection, additional baggage and other ancillary services.

It also gives airlines greater control over how their products are packaged, priced and presented across distribution channels.

NDC is therefore a technology standard, not a form of travel agency accreditation. An airline determines which sellers can access its NDC content and under what commercial conditions.

What is the difference between IATA accreditation and TIDS?

IATA accreditation establishes an agency’s eligibility to participate in the airline ticketing and settlement framework through the Billing and Settlement Plan (BSP), subject to the applicable requirements.

TIDS, or Travel Industry Designator Service, is different. It provides non-accredited travel sellers with an industry identification code that allows airlines, hotels, car rental companies and other suppliers to recognise their bookings.

IATA’s TIDS programme is free, with no application or annual renewal fee. Applicants must provide supporting business documentation, including proof of business registration, a bank letter or statement and a recommendation from an eligible industry supplier.

However, TIDS does not provide the right to issue airline tickets through BSP.

This means a non-IATA agency can be recognised by suppliers and potentially access NDC content without acquiring the settlement privileges available to accredited agents.

How does Kenya Airways allow non-IATA agencies to participate?

Kenya Airways provides several routes to its NDC content.

These include its NDC Agent Portal, access through an NDC aggregator and direct API connectivity for larger travel businesses and online travel agencies.

For non-IATA agencies using the Amadeus arrangement, they need two key requirements: a valid TIDS number and an ES or EOS agreement configured within Amadeus.

Agencies can request access through Kenya Airways’ NDC team, copying their Amadeus account manager.

The airline’s own NDC documentation also provides for non-IATA sellers who wish to ticket directly through its platform. Such agencies require a TIDS number and must approach the airline’s local sales representative to establish ticket-stock allocation.

The airline’s published arrangements identify bilateral credit limits as a payment option for non-accredited agencies.

This is different from BSP, where accredited agencies benefit from consolidated billing, reporting and settlement across participating airlines.

Why does BSP matter?

BSP simplifies the financial relationship between travel agents and airlines.

Instead of maintaining separate payment and settlement arrangements with every participating carrier, accredited agencies use a centralised framework for reporting sales and remitting funds.

For non-IATA agencies, transactions outside BSP become bilateral arrangements. Each airline determines its own ticketing, payment, credit and commercial conditions.

IATA explicitly states that TIDS holders are not supported in BSP, including for NDC transactions.

Consequently, an agency may have access to an airline’s NDC fares but still need a separate credit facility, payment arrangement and ticketing agreement before it can issue tickets.

Does this apply to every airline?

No. NDC access policies differ between carriers.

Some airlines allow non-IATA agencies to access their content through designated portals or technology partners, while others restrict participation to accredited agencies or impose additional contractual requirements.

For example, Air India’s published NDC programme identifies access routes for TIDS agencies, including direct connectivity, while its GDS arrangements direct non-IATA agents to their technology providers.

The lesson for travel agencies is that access to one airline’s NDC content does not automatically provide access to another carrier’s distribution network.

What should a small agency consider?

For a smaller Kenyan agency, the decision to adopt NDC should go beyond whether the fares are available.

The agency needs to establish who will authorise ticket issuance, how payments will be made, whether a credit facility is required, what technology costs apply and how changes, refunds and cancellations will be handled.

It should also establish whether the airline’s NDC content is available through its existing GDS or whether a separate portal or aggregator subscription is necessary.

Ultimately, IATA accreditation is not a universal gateway to NDC, but commercial authorisation remains essential. The expansion of NDC is creating more entry points for smaller travel businesses, although access to airline content and access to the financial infrastructure supporting ticket sales remain separate matters.

Dubai has turned its streets, beaches, parks and public spaces into a month-long fitness destination, as the emirate launched the 2026 edition of its Dubai Fitness Challenge, targeting residents and international visitors with 30 days of sporting activities and community events.

Running from October 31 to November 29, the annual initiative encourages participants to undertake at least 30 minutes of physical activity every day for 30 consecutive days, combining individual fitness goals with free public events across the city.

The programme forms part of Dubai’s wider destination strategy of using lifestyle experiences and large-scale events to broaden its tourism appeal beyond shopping, luxury hospitality and traditional attractions.

Activities include organised fitness sessions, running and cycling events, group exercise classes and community sporting experiences. Public fitness villages and dedicated activity zones provide opportunities for participants of different ages and fitness levels to take part.

The initiative also makes use of Dubai’s existing tourism infrastructure, including waterfront promenades, parks, beaches and urban public spaces, allowing visitors to incorporate physical activity into their holiday itineraries.

For the tourism industry, the challenge offers another reason to market Dubai during November, particularly to travellers interested in wellness, active holidays and family experiences. Hotels, tour operators and travel agencies can also incorporate the event into wider destination packages, combining sporting activities with accommodation, entertainment, shopping and sightseeing.

Dubai has increasingly used its annual events calendar to stimulate visitor activity beyond its established attractions. The fitness challenge complements the emirate’s winter tourism season, when cooler outdoor conditions make beaches, parks and open-air recreational activities more attractive.

Beyond attracting visitors, the campaign supports Dubai’s ambition to establish physical activity as part of everyday urban life while strengthening its reputation as a city offering accessible lifestyle experiences.

The 2026 edition runs until November 29, giving visitors arriving during the month an opportunity to participate in activities taking place across the emirate.

Kenya has asked Saudi Arabia to lift its Ebola-related travel restrictions, arguing that the measures are disproportionate to the country’s public-health situation after reporting no new infections since October 19 and containing all confirmed cases within a single transmission cluster.

In a diplomatic note dated October 30, the Ministry of Foreign and Diaspora Affairs urged Riyadh to review its decision to suspend travel by Saudi citizens to Kenya, halt the issuance of visas to Kenyan travellers and bar entry to passengers who have been in Kenya within the preceding 21 days.

The Kenyan government acknowledged Saudi Arabia’s right to protect public health but argued that the blanket restrictions were not supported by the epidemiological evidence available in Kenya.

“The measures against Kenya are disproportionate and not supported by scientific health evidence,” the ministry said in its communication.

Kenya has recorded nine confirmed cases of Bundibugyo virus disease, including two deaths. All cases have been linked to an imported infection involving a Kenyan national who travelled from the Democratic Republic of Congo through Uganda. The eight subsequent infections involved four family members and four healthcare workers who had contact with the initial patient.

Crucially, health authorities have found no evidence of transmission beyond this cluster. The Ministry of Health says all 135 contacts linked to the initial case were traced, with 118 placed under quarantine and monitored.

The first 20 contacts completed their mandatory 21-day monitoring period and were released on October 26. A further 46 contacts are expected to complete monitoring on November 3, provided they remain symptom-free.

Of the seven patients still receiving treatment, five had returned an initial negative test and were awaiting a second test scheduled for November 2. The Ministry expressed optimism that they could be discharged the following day, subject to medical assessment.

The progress has strengthened Kenya’s argument that the Saudi restrictions do not reflect the country’s containment efforts.

In its diplomatic note, Nairobi described the suspension of visas and the exclusion of anyone who had been in Kenya during the previous 21 days as a blanket measure that could penalise the country despite its cooperation with international health authorities.

The restrictions threaten travel for Kenyan workers, religious pilgrims, students and businesspeople, while potentially disrupting tourism and trade relations between the two countries.

Kenya has asked Saudi Arabia’s national focal point to provide the World Health Organisation (WHO) with the scientific justification for measures that significantly interfere with international travel, citing Regulation 43 of the International Health Regulations (2005). It has also called for the restrictions to be reviewed within three months and offered to provide Saudi health authorities with a technical briefing on the outbreak.

The Kenyan position is reinforced by WHO’s October 23 situation report, which advised against restrictions on travel to or trade with affected countries. WHO reported that all eight secondary infections in Kenya were known contacts of the imported case and found no evidence of wider community transmission.

Kenya’s situation must, however, be distinguished from the Democratic Republic of Congo, where the outbreak continues to record substantial transmission across multiple provinces.

The government is continuing surveillance and contact monitoring as it approaches the next significant milestone on November 3. The country will still need to meet the required 42-day period without new cases, following the last confirmed case, before it can be declared Ebola-free.

For Kenya’s aviation and travel industry, the dispute highlights the wider economic consequences of health-related travel restrictions. While airlines and travel agencies must observe destination entry requirements, Nairobi’s diplomatic engagement seeks to ensure that precautionary measures reflect the actual epidemiological risk rather than imposing broad restrictions on an entire country.

The government’s message to Riyadh is that Kenya needs international cooperation and recognition of its containment efforts, not isolation.

Source : the-star.co.ke