Australian travel agents have been fined over 600,000 times in the past two years by airlines through Agent Debit Memos (ADMs), with the Australian Travel Industry Association calling for the government to legislate a fairer go for agents and travellers.
Addressing a parliamentary hearing on Mon for the ‘Pay on Delay’ bill tabled by Victorian Senator Bridget McKenzie and Western Australia Senator Dean Smith, ATIA CEO Dean Long took aim at disproportionate treatment of agents by airlines.
The revelation was met with shock by Senator McKenzie and Committee Chair Senator Glenn Sterle, who expressed dismay with the earlier testimony by Qantas and Virgin rallying against a mandatory compensation scheme on cancelled or delayed flights.
“In a majority of those instances, the ADM fee would be more than what the agent would earn in a commission,” Long said.
“For ATIA, we continue to see evidence that further reform is needed to ensure that the aviation industry works for travellers, agents, TMCs, tour operators, airlines and airports.”
Long said travel agents play an essential role in supporting consumers but are often the first ones penalised for systemic issues and inconsistencies in policies.
“Airlines set the terms and conditions for fares and have the ability to take over and amend bookings at any time, yet even as part of this hearing, claims to the contrary were made by airline representatives,” he explained.
“Agents do not hold consumer funds beyond short processing windows, and they are not responsible for setting airline policies. Where issues do arise, existing commercial agreements provide the appropriate mechanisms for resolution. The focus should be on strengthening airline accountability and ensuring a fairer system for all industry participants.”
The Pay on Delay bill seeks to formalise minimum compensation levels for travellers affected by delays or cancellations, with airlines arguing existing Australian Consumer Law is sufficient.
Also addressing the committee was consumer advocate Adam Glezer, who shot down claims by Qantas and Virgin Australia that a mandated compensation scheme would result in higher airfares.
Referring to controlled data from 2022, Glezer said the estimated cost of compensation per passenger across the EU and UK to an airline was between 60 cents and $1.20.
“There’s absolutely no evidence that it would lead to a price rise of any note to consumers.”
To view a video of Long at the Senate, click HERE.
