ASATA has reviewed its terms
of reference, amending the
requirement of members to submit
audited or chartered accountant reports
instead of annual financial statements
that now include special purpose audits,
with the aim of addressing the issue of
transparent pricing.
The amendment was voted in at
Asata’s 2015 AGM.
The special purpose audit should
include verification that there are no
mark-ups on third-party taxes; that the
booking class charged to the customer
matches the booking made; and that
the invoice issued to the customer is a
valid tax invoice in terms of the criteria
required by SARS.
Consideration was also being given to
the issue of “possible tender fraud” as
it related to TMCs that discount service
fees, hiding these charges elsewhere in
the ticket, in order to win corporate and
government accounts, said Asata ceo,
Otto de Vries.
“This amendment does not only
address an industry issue; it is to
ensure our members comply with the
law. Legal opinion was sought from two
senior counsels about the degree of
transparency required by travel agents
with regard to pricing. Marking up of
surcharges, including taxes, airport
taxes and other fees imposed on
airlines by government authorities, is in
direct conflict with the provisions of the
Consumer Protection Act.”
Otto added that, should Asata find
irregularities in audited reports, the
association will engage with the agency,
offering it the opportunity to correct
the issue within a reasonable time
frame. If, after review, the association
finds that the agency has not complied,
Asata will take disciplinary action
and the agency runs the risk of being
expelled.
“We are taking this matter very
seriously as it’s about promoting
professionalism in the travel industry,”
he said.
