The Kenya Association of Travel Agents (KATA) will soon be adopting a policy that will see travel agents cease extending credit facilities for travel to their customers.
Among the affected will be corporate companies, government agencies, NGOs and traders who book for travel and pay over an extended period of time.
This policy, KATA Board of Directors Treasurer Dr Joseph Kithitu said, will ensure that travel agents deal with cash paying clients and therefore are able to remain operational in times of crisis as seen with the COVID-19 pandemic.
To solve cash flow problems, Dr Kithitu emphasised on the need for travel agents to stop extending credit to their clients. “Travel post pandemic needs to be on cash basis. KATA is working with TRA on setting up frameworks that will see travel agents paid on cash basis,” Dr Kithitu said.
He noted that travel agents had undergone a traumatic period brought on by the pandemic that is highly contagious.
“Many businesses have closed down and have had to let go of staff because there is no money coming in with the travel restrictions that are in place.
“All we can do now is chase after payment from government, corporates and our other clients. Business during this period is made harder by the fact that airlines are not refunding travel agents for travel that was already booked during the Coronavirus period,” he stated.
He added, “with no credit extended to our clients, we will be able to align our businesses to deal with the new normal. We may not push as many volumes as before, but we will be able to remain operational even through such crisis”.
Since the first case of infection was first reported in the country in March, business has dropped to a negative for travel agents with the government announcing travel restrictions within the country and a ban on international flights as a way of mitigating the spread of the virus.
Travel agents remain hopeful that travel restrictions will be lifted and travel may resume under the laid down safety protocols to ensure that even as business runs, the spread of the virus remains contained.
Travelers may reach out to their trusted and certified KATA agents for more information on the current laid down procedures and protocols as advised by government.
