The Hidden Cost of Ticketing Errors: How Small Mistakes Can Become Expensive for Travel Agencies

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.

Can travel agencies access NDC without IATA accreditation?

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 turns city into fitness destination with month-long challenge

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 challenges Saudi Ebola travel ban as no new cases reported since October 19

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

Saudi Arabia suspends visas and bars arrivals from Kenya over Ebola concerns

Saudi Arabia has suspended the issuance of all visa categories to travellers from Kenya and barred entry to passengers arriving from the country, disrupting travel between the two markets following concerns over the Ebola outbreak.

The restrictions, announced on October 30 following an assessment by Saudi health authorities, also suspend travel by Saudi citizens to Kenya, introducing new uncertainty for passengers travelling between the two countries for business, religious purposes, employment and family visits.

Under the measures, travellers arriving in Saudi Arabia through third countries are also barred from entry if they have stayed in Kenya or another country experiencing an Ebola outbreak within the 21 days preceding their arrival.

The provision means that routing through another destination does not automatically exempt passengers from the restrictions. It also places additional responsibility on airlines and travel agents to establish passengers’ recent travel histories before confirming their journeys.

The decision was reported by Saudi Gazette following an announcement by the Saudi authorities. The Saudi Public Health Authority, known as Weqaya, said the measures were part of continued monitoring of regional and international health developments and that the health situation within the Kingdom remained stable.

The restrictions come as Kenya manages an outbreak of Bundibugyo virus disease, a strain of Ebola.

The World Health Organisation (WHO), in its October 23 situation update, reported nine confirmed cases in Kenya, including one death, as of October 20. The eight additional cases were linked to the initial imported case, with no evidence of transmission outside the identified cluster at the time.

Kenya’s Ministry of Health subsequently reported on October 30 that the country had gone 10 days without recording a new infection. All nine confirmed cases were linked to the same cluster, while authorities continued monitoring contacts and implementing containment measures.

The development presents a challenge for Kenya’s aviation and travel industry, particularly agencies handling Saudi-bound passengers. The market serves several travel segments, including business, employment, religious travel and visits to family members.

For travel agents, the immediate concern is the treatment of existing bookings, newly issued tickets and passengers whose travel dates fall within the restriction period. Agencies will need to establish the applicable arrangements with airlines and verify entry eligibility before issuing or changing tickets.

The 21-day provision also complicates itinerary planning for passengers connecting through other international hubs. A change of departure point will not overcome the restriction where the passenger’s recent presence in Kenya or another affected country remains within the specified period.

Saudi Arabia has previously introduced similar measures involving the Democratic Republic of Congo, Uganda and South Sudan in June 2026, extending its precautionary approach to countries considered to face Ebola-related risks.

The WHO, however, has advised against restrictions on travel and trade with affected countries, favouring coordinated surveillance, early detection and public health preparedness.

For Kenya, the Saudi decision underscores how a public-health event can quickly extend beyond the health sector, affecting international connectivity, tourism and commercial relationships.

The duration of the restrictions and the conditions for their removal had not been specified in the announcement, leaving airlines, travel agencies and affected passengers awaiting further guidance from Saudi authorities.

Source: saudigazette.com

Visa hurdles discourage 52pc of African travellers from visiting destinations, IATA finds

More than half of African travellers have been discouraged from visiting a destination because of immigration requirements, exposing a growing barrier to tourism growth as countries compete for international visitors.

The International Air Transport Association’s (IATA) 2026 Global Passenger Survey found that 52 per cent of African respondents had been deterred from visiting a destination because of entry requirements, the highest proportion of any region surveyed. Globally, the figure stood at 43 per cent, up from 33 per cent in 2025.

The findings, released on October 28, highlight how visa procedures, documentation requirements and processing costs are increasingly influencing destination choices, sometimes before travellers even make a booking.

Complexity was the biggest concern among affected passengers, followed by cost. Globally, 53 per cent of respondents who had been discouraged by immigration requirements cited complexity, while 17 per cent identified cost and another 17 per cent cited privacy concerns.

For African tourism markets, the implications extend beyond immigration administration. A traveller comparing destinations may ultimately choose a country with simpler entry procedures over one requiring lengthy applications, extensive documentation or uncertain processing timelines.

This places immigration accessibility alongside air connectivity, accommodation costs and destination experiences as a factor influencing tourism competitiveness.

The survey also revealed strong African passenger interest in digital travel solutions that could simplify international journeys.

Some 87 per cent of African respondents expressed interest in using digital passports for online check-in, compared with the global average of 84 per cent. Additionally, 82 per cent were willing to share biometric information if it meant avoiding repeated presentation of passports and boarding passes at airport checkpoints.

Globally, 86 per cent of passengers said they would be likely to share immigration information digitally before departure to accelerate processing. Meanwhile, 60 per cent preferred applying for visas online rather than visiting embassies or consulates.

The findings suggest that passengers are increasingly willing to embrace technology, but immigration systems have yet to deliver the seamless experience they expect.

For African countries seeking to expand international arrivals and intra-African tourism, simplifying entry procedures could become an important competitive advantage. Electronic visa systems, predictable processing times and interoperable digital travel credentials could reduce friction for visitors while improving the efficiency of border operations.

Kenya has already moved towards digital entry processing through its Electronic Travel Authorisation system, introduced in January 2024 to replace the previous visa application process for most foreign visitors. However, the wider challenge remains ensuring that digital procedures are straightforward, accessible and predictable.

The findings also create an opportunity for travel agencies to strengthen their documentation advisory services. Visa requirements increasingly influence destination selection, making accurate entry information and assistance with applications valuable additions to travel planning. However, governments remain responsible for simplifying immigration procedures.

IATA’s survey, based on more than 10,000 responses from over 200 countries, points to a fundamental issue for the continent’s tourism industry: improving connectivity alone will not be enough if travellers find destinations difficult to enter.

With 52 per cent of African respondents reporting that immigration requirements had discouraged them from visiting a destination, easing border formalities could be as important to attracting visitors as expanding flights and promoting tourism products.

Source: International Air Transport Association (IATA)

Skyward’s 3pc agent commission revives debate over airline distribution economics

Skyward Airlines has reinstated a 3 per cent commission on eligible ticket sales through its Travel Agent Booking Portal, reopening a long-running debate over how airlines compensate travel agents for distributing their products as the industry moves towards direct bookings and technology-driven sales.

The commission applies to the base fare of tickets issued by registered and authorised travel agents through the airline’s designated portal. Taxes, airport charges, levies and ancillary fees are excluded.

The decision offers travel agencies a new revenue opportunity, but its significance extends beyond the additional earnings. It comes against a history of declining airline commissions, the introduction of service fees and performance-based incentives, and growing differences in how carriers reward agencies across international markets.

From standard commissions to zero commission

Airline commissions were once a central component of the travel agency business model. Agents sold tickets on behalf of carriers and received a percentage of the fare as remuneration for marketing, distribution, booking and ticketing services.

In international markets, commission rates historically averaged between 6 and 7 per cent before the mid-1980s. In the United States, rates subsequently rose to 10 per cent during a period of intense competition for agency business.

That model began to change in 1995 when Delta Air Lines introduced commission caps, triggering a series of reductions across the industry. By 2005, most major US and many international airlines had adopted zero-base-commission policies, according to the publication.

The change shifted much of the responsibility for agency remuneration towards customer service fees and privately negotiated commercial agreements between airlines and larger travel agencies.

Instead of receiving a standard percentage on every ticket, some agencies began earning performance-based overrides tied to sales volumes, market share, particular fare categories and revenue targets.

The system remains in place in different forms across global markets. Large agencies can negotiate commissions and additional incentives with individual airlines, while smaller agencies may receive no standard commission from some carriers.

The result is that airline commission is no longer a uniform industry-wide entitlement but a commercial arrangement shaped by individual airline strategies and agency performance.

Kenya’s experience with commission cuts

Kenya’s travel trade has experienced the same transition.

In 2007, British Airways reduced its agency commission in Kenya from 7 per cent to 1 per cent, before announcing its intention to eliminate the remaining commission from February 2009.

The decision prompted protests from the Kenya Association of Travel Agents (KATA), with the association arguing that agents were providing distribution and sales services on behalf of airlines and should be compensated for that work.

British Airways maintained that the changing industry environment required travel agents to determine their own service charges and obtain compensation directly from customers.

The dispute reflected a wider change in the airline-agency relationship: airlines increasingly viewed agents as independent service providers whose income could come from passengers rather than from the carrier.

Research published in 2021 by scholars from Moi University examining Kenya Airways’ strategies following its zero-commission policy also documented the industry’s adjustment. It identified internet distribution, corporate travel, branding and yield management among the approaches used to sustain ticket sales in the changed environment.

The development of online booking platforms gave airlines another route to reach passengers directly, although it did not eliminate the role of travel agencies in corporate travel, complex itineraries and other specialised bookings.

The commercial value of the agency channel

Despite the growth of direct airline sales, travel agencies remain an important distribution channel in Kenya.

IATA’s Billing and Settlement Plan (BSP) data, as reported by KATA, shows that accredited travel agencies processed more than Sh74 billion in airline ticket sales in Kenya in 2025.

Globally, the BSP handles more than US$240 billion in annual settlements, connecting hundreds of airlines with tens of thousands of accredited travel agencies.

These figures represent the scale of transactions passing through the agency settlement system, not the revenue earned by travel agents. However, they illustrate the commercial reach of the distribution network available to airlines through accredited agencies.

For carriers, the agency channel provides access to corporate accounts, government travel, tour operators, group bookings and customers who require assistance navigating multiple airlines and complex itineraries.

For travel agents, airline commissions and incentives can help offset the cost of maintaining booking systems, trained personnel, customer support and after-sales services, including ticket changes and refunds.

The economics are relevant in Kenya, where corporate and government travel often involves credit arrangements and delayed customer payments. Agencies may have to issue tickets and meet airline settlement obligations before receiving payment from their clients.

This means the commercial value of an airline relationship extends beyond the commission percentage. Payment terms, access to inventory, booking technology, ticketing support and incentives can all influence the cost and profitability of distributing a carrier’s products.

A global market with different remuneration models

The international market illustrates how airline remuneration has evolved beyond a single commission structure.

In the United States, major carriers increasingly rely on confidential agreements with larger agencies, combining commissions on selected fare categories with overrides linked to market share and sales performance.

Commissions and overrides at some large agencies can approach 10 per cent of airfares, although such arrangements are negotiated and are not generally available to every agency.

Other carriers have introduced structured remuneration programmes tied to specific booking channels. Australia’s Jetstar, for example, operates a voluntary programme under which approved agents can receive remuneration on eligible bookings made through its Agent Hub and API. Its published conditions exclude bookings made through global distribution systems and call centres.

The examples illustrate that zero base commission does not necessarily mean airlines have stopped paying travel agencies. Rather, remuneration has become more selective, differentiated by distribution channel, agency size, commercial agreements and sales performance.

IATA’s 2026 Passenger Agency Conference Resolutions Manual also makes clear that commission and remuneration levels are determined by individual airlines, reinforcing the importance of commercial agreements between carriers and their distribution partners.

Technology is changing the relationship

The debate is also taking place as airlines invest in New Distribution Capability (NDC) and other digital retailing systems that give them greater control over how their products are displayed, priced and sold.

NDC allows airlines to distribute richer content, including branded fares, baggage options, seat selection and other ancillary services through technology platforms used by travel agencies.

For airlines, this offers greater control over product presentation and distribution costs. For agencies, it creates opportunities to access a wider range of products while maintaining their role in advising customers and managing bookings.

However, access to airline content and the commercial terms attached to selling it remain important considerations for agencies.

Kenya Airways has been expanding access to its NDC content through its trade platform, while Ethiopian Airlines has developed an agency programme covering more than 700 IATA, non-IATA and NDC agencies across more than 60 countries.

The developments point towards a distribution model in which airlines and travel agencies increasingly rely on shared technology infrastructure, even as they negotiate how the resulting sales revenue is divided.

What Skyward’s return means

Skyward’s decision to restore a 3 per cent commission is therefore significant as an example of an airline choosing to remunerate its agency distribution network directly.

The arrangement also gives the carrier an incentive to encourage authorised agents to transact through its booking portal, potentially strengthening direct commercial engagement between the airline and its sales partners.

However, the commission is restricted to eligible tickets issued through the platform. Agents must also comply with the airline’s ticketing and payment policies, while those without active accounts are required to contact the sales team for registration or reactivation.

For Kenya’s travel trade, the development raises a broader question about the sustainability of airline distribution: as airlines continue to expand direct sales and digital platforms, how should the agencies that bring them customers, manage bookings and provide ongoing service be compensated?

KATA, Uganda travel agents sign deal to deepen cross-border tourism trade

The Kenya Association of Travel Agents (KATA) and the Uganda Association of Travel Agents (TUGATA) have signed a memorandum of understanding to strengthen cross-border tourism business, as visitor movements between the two countries surpassed 750,000 in 2025.

The agreement, signed during the fifth Uganda–Kenya Coast Tourism and Innovation Summit in Mombasa, establishes a framework for cooperation between travel agents in the two markets, with a focus on business partnerships, market access, innovation and the development of regional travel products.

The partnership comes as Kenya and Uganda record growing visitor flows in both directions, creating opportunities for travel agencies and tourism businesses to capture a larger share of regional travel expenditure.

Ugandan arrivals to Kenya increased by 16.3 per cent, from 201,623 in 2024 to 234,556 in 2025, according to Kenya Tourism Board figures. In the opposite direction, Kenyan visitors to Uganda rose by 11.2 per cent, from 466,902 to 519,041, according to Uganda Tourism Board data.

Combined, the two markets recorded 753,597 cross-border visitor arrivals in 2025. The figures point to an established regional travel market, although they represent movements in both directions rather than unique individuals.

Uganda is particularly important to Kenya’s tourism industry, accounting for approximately 31 per cent of arrivals from African markets and ranking among the country’s leading regional source markets.

For Kenya’s travel trade, the growth presents an opportunity to develop packages that extend beyond traditional destination boundaries. Uganda’s mountain gorillas, wildlife reserves, adventure tourism and cultural attractions offer a natural complement to Kenya’s coastal resorts, marine parks and safari circuit.

A traveller could combine a wildlife experience in Uganda with a coastal holiday in Mombasa, while Kenyan visitors to Uganda offer opportunities for agencies to sell gorilla trekking, nature-based tourism and other experiences.

The commercial opportunity, however, extends beyond packaging destinations together. Travel agents on both sides can establish direct supplier relationships, widen their distribution networks and reduce reliance on intermediaries when sourcing accommodation, transport and destination experiences.

KATA Honorary Secretary Margaret Gitonga signed the agreement on behalf of the Kenyan association. The signing took place in the presence of Uganda’s First Deputy Prime Minister and Minister for East African Community Affairs Rebecca Alitwala Kadaga, State Minister for Tourism, Wildlife and Antiquities Susan Nakawuki, and Uganda’s Consul General in Mombasa, Ambassador Herbert Kiguli.

KATA board members Grace Wairimu and Patrick Maina Kamanga also attended the engagement, with Kamanga representing the association’s Coast region.

The agreement builds on efforts by the two associations to strengthen business-to-business relationships between their members and create opportunities for Kenyan travel sellers to connect with Ugandan tourism suppliers.

Technology investment also emerged as a central issue during the summit, particularly as travel businesses face changing customer expectations and increasing competition in the distribution of tourism products.

Gitonga, speaking during a panel discussion on tourism, technology and investment, urged travel agencies to invest more substantially in technology, including systems that improve the ability of employees to serve clients.

“We must invest in technology. I encourage my peers (Travel Agents) to substantively invest in technology to enable even our employees to better serve clients,” she said.

For travel agencies, technology investment has implications for how quickly they respond to enquiries, compare travel options, manage bookings and distribute products across different markets. Stronger digital capabilities could also make it easier for Kenyan and Ugandan businesses to collaborate on itineraries and manage bookings involving multiple destinations.

The economic significance of the partnership is reinforced by the wider performance of the two tourism sectors. Kenya generated approximately Sh501.3 billion in tourism earnings in 2025, while Uganda recorded tourism receipts of about Sh5.83 trillion Ugandan shillings, equivalent to US$1.62 billion.

Uganda received 1.64 million international visitors during the year, representing growth of 19.7 per cent, according to its Ministry of Tourism, Wildlife and Antiquities. Kenya, meanwhile, received 2.7 million international visitors, alongside 5.2 million domestic travellers.

These figures illustrate the scale of the tourism economies the two countries can connect through stronger regional trade.

However, increased visitor numbers do not automatically translate into higher earnings for individual businesses. The ability to convert demand into bookings will depend on the availability of competitive packages, reliable transport connections, affordable travel and effective cooperation among tourism suppliers.

The Mombasa summit brought together policymakers, tourism associations, travel agents, tour operators, hoteliers and other private sector players to discuss regional tourism development, innovation, investment and mobility.

For the Kenya Coast, stronger engagement with Uganda offers an opportunity to deepen its regional visitor base beyond traditional international source markets. Direct relationships with Ugandan travel agents could help coastal hotels, resorts, tour operators and transport providers access customers through established distribution channels.

The partnership also creates room for reciprocal promotion of destinations, allowing Kenyan travel businesses to market Uganda while their Ugandan counterparts expand the reach of Kenya’s coastal and safari products.

The challenge now is to translate the memorandum into measurable commercial outcomes, including new supplier agreements, jointly developed itineraries, increased bookings and stronger business relationships between members.

With more than 750,000 recorded visitor movements between the two countries in a single year, the Kenya–Uganda tourism relationship already has a substantial market foundation. The success of the agreement will depend on how effectively the two travel trade associations turn those flows into sustained business for their members.

Kenya Airways Adds Second Daily Dubai Flight as Nairobi–UAE Travel Demand Grows

Kenya Airways has doubled its scheduled daily flights between Nairobi and Dubai for the 2026/27 Northern Winter season, increasing capacity on a route that connects Kenya to one of the Middle East’s major commercial and international travel hubs.

The revised schedule, effective October 25, introduces a second daily service, taking Kenya Airways’ operations to 14 weekly flights in each direction. The flights, KQ304/KQ305 and KQ310/KQ311, are scheduled to operate through late March 2027.

The additional frequency gives passengers more departure options between Nairobi and Dubai, while providing travel agents with greater flexibility when arranging business trips, leisure holidays and onward connections.

Emirates also operates three daily flights between Nairobi and Dubai, equivalent to 21 weekly services in each direction. Together, the two airlines offer a substantial schedule on the route, reflecting its importance for passenger movements between Kenya and the United Arab Emirates.

Dubai serves as a gateway for travellers connecting to destinations across Asia, Europe and the Middle East. The route also supports direct travel for business, trade, shopping and leisure, making it relevant to a broad range of passenger segments.

For Kenya Airways, the additional service increases the number of opportunities to carry passengers on the route and accommodate different departure preferences. For travel agents, the expanded schedule provides more options when matching clients with suitable flight times and onward connections.

The schedule change is a sign of increased planned capacity, although it does not, on its own, quantify passenger demand or establish how full the additional flights are. Actual demand will be reflected in passenger numbers and load factors as the winter schedule progresses.

Source: aeroroutes.squarespace.com

As Airlines Accelerate NDC, What Does IATA Accreditation Mean for Travel Agents?

As airlines expand New Distribution Capability (NDC), the technology standard that is changing how airfares and ancillary services are sold, IATA accreditation remains commercially relevant for travel agencies seeking to manage ticket sales and payments through a common settlement system.

The International Air Transport Association (IATA) confirms that its Billing and Settlement Plan (BSP) services for NDC are available to IATA-accredited travel agents, allowing qualifying transactions to be settled through the same framework used for traditional distribution sales when participating airlines report their NDC transactions through BSP.

The arrangement can consolidate sales reporting, remittance procedures and financial adjustments through BSPLink, reducing the administrative burden of reconciling transactions across different distribution channels. Eligible agents may also access IATA EasyPay and, where applicable, a common financial-security framework covering both traditional and NDC sales.

However, access is not automatic for every NDC booking. Participation depends on the airline’s settlement arrangements, the agency’s eligibility and the applicable commercial and ticketing requirements.

For travel agencies, the distinction matters as airlines expand NDC distribution and businesses assess the cost of maintaining accreditation against the operational benefits it provides. Access to NDC content alone does not guarantee access to BSP settlement, nor does accreditation automatically provide access to every airline’s fares or ticketing facilities.

The commercial decision for agencies is whether accreditation and the services attached to it justify the costs within their particular business model. Factors include ticket volumes, airline relationships, financial-security requirements and the efficiency gained from consolidated reporting and settlement.

As airline distribution evolves, travel agents must assess not only which fares and products they can access, but also how efficiently they can book, pay for, reconcile and service those transactions.

Source: iata.org