DEVELOPMENTS - Difficult to implement unpopular policy in Philippines

TTGasia, Oct 6 - 12,2006 / No.1498

PHILIPPINE IATA Agents Travel Association (PIATA) president and Rajah Travel executive vice-president, Ms Aileen Clemente, said the Philippines’ unique market conditions also made daily voiding difficult to implement.

The marine market, particularly for sea crew travel, is characterised by changes in port and departure dates, and is governed by stringent travel-tax-exemption procedures. Each IATA agent also has ticket stock allocations, resulting in different formulations of how many tickets they can issue.

Ms Clemente added: “It is a chicken-and-egg situation. To apply for a visa, you need proof of booking. What happens if the visa is denied or the processing is late and you cannot leave on your desired date?”

First Metro Travelex president, Ms Lucille Chabeldin, believed agents would lose flexibility in handling corporate clients. She said: “Business travellers often change their schedule. We used to either refund or re-issue tickets for no-shows or changes in onward sectors. Clients will not pay for unused tickets, so I would now have to pay for them. Sometimes, tickets are highly restricted with no refund value. There are so many issues IATA failed to consider.”

Adding that refund charges would have to be passed on to clients, she anticipated cash flow problems as agents would have to make advance payments for international tickets and taxes.

The trade has asked IATA to defer implementation of the same-day-void regulation. Ms Clemente said: “We already have shorter ticketing time limits that show a higher commitment to ticketing and allow airlines to know their revenue. The rationale behind daily voiding is still unclear.” At press time, IATA had not replied.

Agents are bracing themselves for the effects. Ms Chabeldin said: “Some commitments with corporate clients, especially credit accommodation, will really have to change.”