The Australian Travel Industry Association has reinforced its call for fairness in the treatment of travel agents by airlines, particularly in relation to Agent Debit Memos (ADMs), during a Senate committee hearing on the Pay for Delay Bill 2024.
Appearing before the Senate Rural and Regional Affairs and Transport Legislation Committee on Monday, ATIA CEO Dean Long highlighted the disproportionate burden imposed on agents by airlines, including the widespread use of ADMs, which saw over 600,000 fines issued to Australian travel agents in the past two years.
“In yesterday’s hearing, I spoke to the fact that in 2023 and 2024 over 600,000 ADMs were levied against ATIA members. In a majority of those instances, the ADM fee would be more than what the agent would earn in a commission. For ATIA we continue to see evidence that further reform is needed to ensure that the aviation industry works for travellers, agents, TMC’s, tour operators, airlines and airports,” he said.
ATIA’s advocacy remains focused on securing a competitive and transparent travel industry that delivers for its members and the travellers they support. The association continues to push for reforms that ensure agents are not unfairly penalised while also strengthening consumer confidence in the travel booking process.
Airlines have issued over 600,000 ADMs to Australian agents in the past two years, many for minor discrepancies. Despite their claims, airlines have full control over bookings and can amend them at any time. Travel agents do not control fare conditions and do not hold consumer funds beyond a short processing window.
“Travel agents play an essential role in supporting consumers, yet they are often penalised for systemic issues in airline 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 said.
“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.”
ATIA supports, and continues to lobby for, the establishment of an Aviation Industry Ombuds Scheme and Rights Charter that ensures airlines and airports are held accountable for their service standards, ATIA Director of Public Policy and Advocacy Ingrid Fraser said.
“The failure of the Airline Customer Advocate to effectively resolve complaints highlights the need for stronger protections. Any new framework must remain focused on addressing airline-related issues and not shift further obligations onto travel agents.
“ATIA continues to work constructively with industry and government to advocate for practical reforms that enhance transparency and fairness, benefiting both agents and consumers.”
Coalition Senator Bridget McKenzie had pushed on Monday for a mandatory compensation scheme for cancelled or delayed flights, which major Australian airlines have opposed during a Senate committee’s latest hearing.
Qantas told a Senate committee that bringing a European Union-style compensation-based refund scheme into Australia could result in higher prices for tickets.
Qantas domestic CEO Markus Svensson told the inquiry into passenger rights on Monday that any scheme would not help consumers in terms of reduced delays or cancellations and could drive up prices.
“Compensation-based regimes such as those in Europe and Canada have shown these schemes do not deliver better outcomes for consumers in terms of reduced delays and cancellations, and they increase the cost of travel,” he said.
“The potential effect on fares, implications for low-cost carriers and the likely negative effect on economically marginal routes – particularly on Australia’s regional network – should all be closely considered.”
McKenzie told the Senate committee hearing on Monday the pay on delay scheme is needed as the Australian public has lost trust in Virgin Australia and Qantas.