Victoria: PTAA is working to counter the fallout
IATA-accredited travel agencies in the Philippines have resigned themselves to a shorter airlines payment period beginning Friday despite strong objection from the trade.
Philippine Travel Agencies Association (PTAA) president Michelle Victoria stated in a memo to its members that IATA had given them “no choice but to accept” the new Express Weekly Remittance payment timeframe.
Under the new terms, agencies must credit airlines weekly instead of every 15 days.
“The weekly remittance is already being practised worldwide and the Philippines is among the last to adopt the change due to our continuous resistance,” said Victoria.
She added that there was “no cushion offered by IATA” for travel agents whose cashflow would be adversely affected. Some agency clients may have credit lines that are longer than the new remittance period, for instance.
Even the use of credit cards for payment, as suggested by some agencies, thereby extending credit lines through the banks, was not acceptable.
“The problem is not all airlines are in agreement,“ Victoria told TTG Asia e-Daily.
“We will continue to work on other options that can cushion the impact and soften the effect of this new scheme,” she added.
