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WTAAA demands end to unfair skiplagging penalties for agents

WTAAA demands end to unfair skiplagging penalties for agents

Kanchan Nath

- April 25, 2024

As airfares continue to surge, travellers increasingly turn to skiplagging for more affordable options. Skiplagging is the practice of booking a cheaper flight with a layover at a destination the traveller intends going to, and then intentionally skipping the final leg to secure a lower fare. While this approach can be tempting for cost-conscious travellers, the World Travel Agents Associations Alliance (WTAAA) highlights a concerning reality: it’s travel agents who often bear the brunt of the consequences, facing penalties for practices driven by price-conscious consumers who book through the travel agency channel.

“Skiplagging is a long-standing issue in the travel industry that we do not support, but travel agents cannot control customer behaviour once travel is underway,” says Otto de Vries, Executive Director of WTAAA. “While airlines have filed unsuccessful legal cases against consumers who skiplag, they continue to issue Agency Debit Memos (ADMs), penalising agents whose clients break fare rules by not taking a flight segment.”

Otto de Vries

 

A recent survey by passport-photo.online found that over 64% of American flyers skiplag at least 25% of their flights annually, with the practice increasingly popular among younger generations as a way to find cheaper fares and more convenient routes. Social media platforms like TikTok have even promoted skiplagging.

“We do the right thing by booking as per the published fares, but the practice of holding the agent financially responsible when the client breaks airline rules remains a major concern,” says De Vries. “It’s time airlines play a straight game on pricing without huge markups for hub-to-hub tickets versus to final destinations, which would diminish the incentive for skiplagging.”

While skiplagging can constitute a violation of airline terms, a 2019 court case in Berlin dismissed Lufthansa’s attempt to sue a passenger for over US$2,300 in fees avoided by skiplagging, likely due to the difficulty of proving intentionally missed segments.

However, according to IATA Resolution 830a, airlines have an easier path to enforcing penalties against travel agents via ADMs issued through the Billing and Settlement Plan system when agents’ clients go against fare rules without the agent’s knowledge.

“The consequences are clearly uneven based on whether the consumer booked direct or via an accredited agent who unintentionally booked a so-called skiplag itinerary on behalf of their customer,” adds De Vries. “While airlines struggle to punish direct booking consumers legally, they readily fine agents, sometimes contributing to agency closures from the financial impact. This unequal treatment must be addressed.”

WTAAA emphasises that travel agents have a duty to advise clients about the potential risks associated with skiplagging. These risks can include voiding return flights, losing frequent flyer benefits, facing legal action, or having accounts banned by the airline. Ultimately, however, it should not be the travel agents who bear the financial cost of their client’s travel decisions.

WTAAA calls for an open dialogue between the airline industry and travel agent associations to address the increasing issue of skiplagging. This dialogue should focus on finding solutions that protect consumers’ rights to make informed choices while ensuring a fair and sustainable environment in which travel agents can operate.

 

 

 

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WTAAA demands end to unfair skiplagging penalties for agents

Kanchan Nath

- April 25, 2024

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May we all strive to emulate her virtues and remember that true wealth lies in the depth of our character, the sincerity of our actions, and the impact we have on those around us.”

Stay riveted for our next gala event, The Brand Travel Daily Media Travel Excellence Awards that recognizes and celebrates the outstanding achievements of companies and individuals in the travel, airline, and hospitality industry. They are scheduled to take place in 11 October, 2024

For inquires, to attend or sponsor next awards, kindly email here: Gary@traveldailymedia.com

If you know of any female leaders or up and coming superstars in the Travel and Hospitality industry you would like to nominate, please visit our page and complete a nomination form!
The prestigious IWTA Awards 2024 Award Winners are listed below:

content studio box

…there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you design and create an advertising campaign.

We can also organise a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

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Connect with your clients by working with our in-house brand studio, using our expertise and media reach to help you create and craft your message in video and podcast, native content and whitepapers, webinars and event formats