WTAAA criticises IATA's new BSP billing model
World Alliance of Travel Agencies Associations, World Travel Agents Associations Alliance (WTAAA), reacted publicly to the decision of the member states International Air Transport Association (IATA) on the introduction of a standardised and shorter payment period for travel agencies on a global scale. According to WTAAA's assessment, this approach disrupts existing airline distribution relationships and disregards the specificities of local markets.
The return of structural imbalance issues
WTAAA warns that the Passenger Agency Programme has suffered from an imbalance in decision-making for years. Binding decisions are made at the Passenger Agency Conference, where only airlines have voting rights, while agencies are reduced to an advisory role. The new charging decision further highlights this problem as jointly agreed local solutions can be unilaterally abolished.
Marginalisation of APJC bodies
The key change relates to the decision to introduce a unified billing schedule across all BSP markets by mid-2026. This effectively removes the authority of the Agency Programme Joint Councils (APJC), bodies where local airlines and IATA-accredited agencies are equally represented.
Up to now, APJCs have successfully adapted their collection deadlines to local payment habits, the billing cycles of corporate clients, and realistic business relationships in the market.
Liquidity pressure on agencies
According to the WTAAA, shorter and standardised payment terms will put serious pressure on cash flow, especially for agencies and tour operators with a high proportion of corporate sales.
In the BSP system, agencies collect funds from clients and centrally forward them to IATA, which then distributes the money to airlines. The new model dictates that agencies must pay funds before collecting them from end-users, thereby de facto financing air carriers from their own liquidity.
Why are local solutions important
WTAAA emphasises that locally defined collection deadlines are aligned with national financial practices and cost reconciliation processes for corporate clients. Ignoring these differences, they warn, increases operational and financial risks across the travel sector.
Call to return local powers
Calls on IATA and its members to re-authorise APJCs in setting collection deadlines. According to WTAAA, a model that takes into account local market conditions better protects airline revenues but also the long-term sustainability of travel agencies.
Industry representatives warn that global standardisation, if implemented without understanding local business models and financial realities, could open up new tensions within the aviation and tourism ecosystem.
