Certain airfares are, since Monday, October 7, being filed in GDSs in US dollars in the South African market.
This is because IATA has now included South Africa in Resolution 024a - IATA’s set of guidelines that outline the standards and procedures that airlines and travel agents follow when selling air tickets and ancillary services.
With South Africa now added to this rule, it means that some IATA airlines’ airfares, fees and baggage charges in South Africa will now be filed in US dollars.
Amadeus notified the trade of the switch, saying: “Although fares will be filed in USD, it's important to know that tickets and sales in South Africa will still be done in South African rand. This way, pricing will be smooth and there won't be any major changes in daily operations.”
An anonymous agent told Tourism Update’s sister publication Travel News that she had already had airfares affected by the new ruling. “Remittance and settlement through IATA BSP will be in ZAR but is updated at time of issue according to the USD exchange rate. That means an airfare could increase if the ROE changes. I had two clients in business class who had to pay an extra R1 000 (€52) on their Air France tickets due to the ROE changing overnight.
“My advice is, quote, book and issue on the same day to make sure the rate does not change if you are booking on an airline which has adopted this new rule.”
Key aspects
The resolution establishes standardised data formats and communication protocols to ensure seamless data exchange between airlines and travel agents and defines the rules and regulations for constructing and distributing airfares and additional fees.
The IATA website states: “Resolution 024a plays a crucial role in ensuring a consistent and efficient distribution process for the airline industry and will help to streamline operations and reduce costs for both airlines and travel agents.”
It is also important to note that, while IATA sets the standards and guidelines, individual airlines may have their own specific policies and procedures in addition to adhering to Resolution 024a.
An international airline representative told Travel News that the decision was not mandated across all IATA airlines; it is a commercial decision made by individual airlines and not all airlines would convert to USD rates. She advised that if agents had any questions about a specific airline's policies or how they implemented Resolution 024a, it was best to contact the airline directly.
Amadeus confirmed that if an airline had not requested Resolution 024a to be loaded, its airfares would not quote in USD but in ZAR, as usual.
Otto de Vries, ASATA CEO weighed in on the topic.
“We’re aware it has not gone as smoothly as expected. One of the biggest concerns is the Rate of Exchange fluctuation in the phase-over from October 6 to October 7. The industry has genuine concerns – re-issues is one of them.”
De Vries said it was frustrating that the whole ecosystem of the SA market has been impacted. He also said there had been a lack of clear, effective communication from IATA.
“The issues arising have had commercial, operational and cost implications in the market. Asata is engaging with IATA, the airlines, the GDSs and our agent constituents to try to mitigate the effects of the switchover.”
“Fares have been filed in ZAR in this market for many, many years. This appears to be passing the risk of ROE management to the customer, via the agent,” said de Vries.
