Travel agents in East Africa have been thrust into a state of uncertainty after Saham insurance announced that they would not be renewing the Default Insurance Program (DIP) for the year 2020.
This was after the International Air Transport Association (IATA) introduced new requirements that Saham insurance refused to comply with.
The withdrawal of this facility means that travel agents have less than three months to come up with a solution on financial security to ensure that the ticket sales market is not affected.
Kenya Association of Travel Agents (KATA) CEO Mr. Nicanor Sabula said that the Association has reached out to IATA to provide an immediate solution to the impasse.
“We have engaged with various industry stakeholders including government agencies in an effort to find a quick and favourable solution,” he added.
Mr. Sabula urged members to remain calm as the Association works towards finding a lasting resolution.
Airlines globally use agents through a centralised distribution system to issue tickets to their clients. To participate in this ticketing platform, travel agents are required by IATA on behalf of airlines to provide financial security.
