Global travel agent groups are escalating their concerns after the International Air Transport Association (IATA) approved a move towards globally aligned Billing and Settlement Plan (BSP) remittance periods.
Critics say the change removes long standing local flexibility and could increase cash flow pressure on agencies.
The change was approved via a mail vote of IATA’s Passenger Agency Conference and centres on Resolution 812.
IATA’s memo on the vote outlines that the proposal removes the clause that allowed a market specific remittance date approved for a specific market, effectively requiring BSP markets to align with the standard remittance timing set out in the resolution. The memo lists an effectiveness date of June 1.
Under BSP arrangements, agents remit funds for airline ticket sales to IATA, which then distributes payments to airlines.
Remittance timing is a major working capital factor for agencies, particularly where customers pay on longer cycles.
The “standard remittance timing” depends on the remittance frequency the agent is on:
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Monthly: payment must reach the Clearing Bank by the date set by the Conference, but no later than the 15th day of the following calendar month (for the month covered by the billing).
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Twice monthly: payment must reach the Clearing Bank by close of business on:
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the last day of the month for billings covering days 1–15, and
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the 15th day of the following month for billings covering days 16–end of month.
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In recent days, the World Travel Agents Associations Alliance (WTAAA) has renewed its criticism of the decision, arguing that global alignment strips local Agency Programme Joint Councils of the ability to reflect market conditions.
WTAAA has also pointed to what it describes as a governance imbalance, where airlines hold binding voting power on BSP resolutions while agents have a consultative role.
The Universal Federation of Travel Agents’ Associations (UFTAA) has also issued a stronger formal objection that is being carried internationally.
UFTAA argues the change undermines local market autonomy and raises competition concerns, warning it could shift financial risk and financing costs down the chain to intermediaries and ultimately consumers.
IATA, in its response within the mail vote memo, says markets have had more than two years to adapt to the alignment direction already adopted and that the current vote does not seek to modify APJC mandates, but removes the opt out provision in the resolution.
ATIA chief executive Dean Long said:
“ATIA is very clear on this. While we understand IATA’s desire for global alignment, the way these BSP remittance changes have been progressed reinforces the imbalance that exists in the system. Australian agents and tour operators were not meaningfully consulted on the removal of the opt-out provision as it was a global decision.
“In practical terms, Australian advisors are likely to be less impacted than some overseas markets, as our current remittance cycles are already close to the proposed five- to seven-day model. For many businesses, the change may be limited to losing up to two days to finalise payments.
“That said, the principle matters. Removing flexibility, particularly for high-volume corporate, wholesale and tour operator accounts, has real cash-flow implications. ATIA is actively engaging with IATA, aligned with global agent bodies, and will continue to advocate strongly to ensure Australian travel businesses are not disadvantaged by one-sided decisions. Supporting our members through these changes is a priority and we’ll keep them informed as this progresses.”
Agent opposition has also been prominent in India, where industry coverage has focused on the potential strain shorter, uniform remittance periods may place on agency cash flow, especially for smaller businesses and agencies serving corporate clients with longer payment cycles.
Separately, the UK has already moved on remittance settings for weekly reporting agencies. ABTA has advised that new rules took effect from January 1, changing the remittance period for agents on weekly reporting to seven calendar days, following a UK APJC process to align with Resolution 812.
With the effective date set for June 1, agency groups globally are expected to keep pressing for either a reconsideration or clearer guardrails on implementation, particularly in markets where local terms have historically provided longer credit windows.
