E.U. Directs IATA To Allow Agents Single European Accreditation

The campaign by corporations and corporate travel agents to pressure the International Air Transport Association into creating a true pan-European marketplace has taken another step forward. The European Commission has given IATA a deadline of July 19 to issue proposals for allowing multinational travel agencies single accreditation across the European Union.

Under current rules, agencies have to go through a different accreditation process in each country. "If IATA can be persuaded--or forced--to come up with a pan-European accreditation system, travel management companies' process costs will be reduced dramatically," said Philip Carlisle, chief executive of the United Kingdom's Guild of Business Travel Agents. "Those savings can then be passed on to client companies."

Single agency accreditation is one of four issues on which agents and corporate travel buyers have been lobbying IATA both directly and through the European Commission, which has concluded that several IATA practices are anathema to its vision of a single European market.

IATA is also under pressure to create a single European billing and settlement plan, now in the early stages of discussion. In addition, agents want E.U.-based satellite ticket printers to be able to print tickets for any air journeys originating in the European Union. Although technically possible now, agents said several technical barriers remain in place, hindering the introduction of pan-European service centers for single clients.

Finally, there is concerted lobbying to harmonize airfares so that the same trip costs the same amount no matter where it is bought in the European Union. The European Commission announced last week that it had taken steps to ensure harmonization of fares bought from airline Web sites. Now there are signs that GDS fares could go the same way. According to agency sources, IATA has indicated that from January 2005 it will harmonize fare construction rules within the European Union. Currently, these too vary by country.

Although there may be small direct savings as a result of fare harmonization, the main savings once more would be in simplified administration for agencies.

Bernard Harrop, American Express director of industry affairs for Europe, gave a cautious welcome to the latest developments. "The effort put in over the past two to three years by agency and corporate groups has put pressure on the airlines to reform," he said. "This is very positive. The caveat is that airlines must deliver what they have promised."