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With the deadline looming for SSIs to become IATA registered, IATA country manager Tim Colehan explains how the organisation is working with the trade to drive change.
What are your priorities as country manager - Gulf area?
IATA is now much more relevant to travel agents. We want to drive change and as part of that you'll see new initiatives and priorities. One of which is to simplify processes with advancements such as e-tickets and the introduction of barcoded boarding passes (BCBP).
We have a board of governors' mandate that IATA members will be 100% BCBP capable by the end of 2010 and an intermediate target of 60% capability by the end of this year.
It's all part of the Fast Travel initiative; implementing the use of self-service technologies in airport departure and arrival processes to enable you to speed up your journey. Passengers have told IATA they want more self-service options.
What is your role in terms of Billing Settlement Plans (BSPs)?
In the Gulf are there are almost 1000 agents and 90 airlines, and just from this region we look after $5 billion per year in settlements so it's a very large part of the role, especially in times of financial crisis. I make sure agents are remitting money to airlines on time and they're not short paying or defaulting. Fortunately we've not had any cases of unrecoverable default for the past three years.
Agencies are concerned over airline bank guarantees. How has IATA responded?
One of the problems in the MENA market is there's been double-digit growth over the last five years and due to increased sales, travel agents have had difficulty obtaining bigger securities through banks. It was suggested that IATA look into the possibility of default insurance and that process is ongoing. We've been looking at an insurance provider, but agents have to give us authority to provide certain information to the provider and that's where the sticking point has come. However, given the current downturn and a reduction in sales, it may be that the pressure's off a little.
Do more self-service options take responsibility away from travel agents?
The travel agent in the Middle East is still an integral part of the distribution system.
In Europe you have many self-service options in terms of online booking, some of which are available here, but the vast majority of people are still utilising travel agents as their primary means of booking. We're looking to improve the service at airports; I don't see it as the booking process, which is predominantly controlled by the agent.
How are SSIs responding as the deadline to become IATA registered approaches?
The migration is going well; agents are starting to accelerate their applications. We're supporting them though communication and instruction. We don't reject applications as such, but if they're not completed properly we will ask for additional information.
What does the phasing out of SSIs mean for the Gulf travel industry?
We've not seen a lot of change in the Kuwait market, where SSIs were phased out last year. The big difference is that SSIs have to provide individual bank guarantees to airlines, so IATA membership alleviates that bureaucracy, and accredited agents are subject to the rigorous and strict requirements of the membership.
What requirements need to be met and what are the implications?
We make sure agents' premises are suitable, they can provide an industry guarantee, they hold a trade licence issued by the appropriate authorities, they're financially secure and staff are trained. There are fees associated with IATA accreditation, but the way our bank guarantees are calculated means it doesn't cost agents a great deal of money and there are benefits. The brand association gives consumers and airlines reassurance of financial security and from a public perspective the market is better regulated.
Tim Colehan has worked in the travel industry for more than 15 years and took on his current role as IATA country manager - Gulf area in January.
"I'm responsible for IATA's field offices in Sharjah, covering the Gulf area and managing Kuwait's IATA office. The country manager role has evolved to more of a general manager role; a man on the ground," said Colehan.
"As well as overseeing the smooth operation of the IATA settlement system, simplifying business and safety are important aspects of the role, and we have goals to reduce fuel consumption and carbon emissions up to 25% by 2020," he added.
