The implementation of IATA’s Resolution on December 10, mandating that airlines file passenger fares and excess baggage charges in USD, has sparked widespread frustration among agents who are grappling with practical challenges and uncertainties surrounding rates of exchange (ROE)
One agent voiced her concerns on Open Jaw, saying she had priced a ticket on Qatar Airways and on Emirates and that both quotes had a slightly different ROE. She said: “Surely the ROE should be one rate that all airlines converting fares from USD apply?”
Agents are also struggling to keep up with the dynamic nature of ROE adjustments. A Durban-based travel agent told Travel News that the rate seemed to change daily which meant quoted airfares were also changing daily. “It is very stressful, especially when quoting leisure clients. I now tell all my clients that no matter what the airline ticketing time limit is to issue a ticket, the fare will likely change after midnight anyway, because of ROE fluctuations.”
She also pointed out that the double conversion process was applied by certain carriers: “Some airlines are not charging USD fares yet, so the fare is converted twice, once from ZAR to USD for the rule and then again to ZAR for issue. It is ridiculous!”
Another agent from Johannesburg, who preferred to remain anonymous, expressed concerns about the impact on client trust. “I have been put in a position with my clients where I must tell them that the airfare is only valid at that moment and another factor that is complicating things is the fees that some banks are charging for cross-border issues. It seems very unprofessional to keep changing the goalposts with quotes. I just keep telling clients that it is an airline or bank policy and I have no control over the costs and fluctuations, but the perception for them is that air travel just seems to get more and more expensive; and that is before I have added in my service fee.”
Otto de Vries, CEO of Asata, said the biggest frustration with the implementation of the Resolution was that the ROE fluctuation risk had been moved on to the travel seller. “The rule makes it extremely difficult to allow any time between quoting and booking/issuing the ticket. The only way to avoid this is to issue the ticket on the same day it is quoted.”
Travel News spoke to Amadeus GM Southern Africa Caroline Smallwood about the practicalities of the new Resolution.
She said:” I can confirm that the GDS loads the exchange rate and the rate changes live, through information received from an international server so all airlines are using the same ROE at the same time.”
She added that the only time the ROE did not change was over a weekend, Friday 00am to Monday 00am. “Fortunately, there have not been any significant changes in the exchange rate and it has remained steady since the Resolution was implemented, but my advice is that agents issue their air tickets the same day as they quote, to avoid any fluctuations.”
