General Body Meeting

1
General Body Meeting

• September 17, 2008

2
DTTAG Executive Committee Members
President Iain Andrew Vice-President Samir
Andraos Executive Committee Members Asim
Arshad Narendra Bhatia Pradeep Havaldar Nasir
Jamil Khan Sandra Owen Sunil DSouza (to be
ratified at GBM)
3
DTTAG Meetings

• Executive Committee members have invested over
  220 hours in meetings so far this year.
• This includes Executive Committee meetings every
  month and meetings with DCCI DCAA and DTCM.

4
Membership Trend
5
Financial Statement
Cash Flow (Dec07- Aug08)

• Notes
• - General Administrative Expense
• Staff Salary inc.eosb paid. 195,218.90
• Telephone
  4,385.28
• Website Hosting
  20,000.00
• Stationary 3,000.00
• Petty Cash
  2,500.00
• Misc. Expense
  530.00
• 225,868.18

• Sponsorship
• EmQuest 100,000.00
• Holiday Autos 25,000.00
• 125,000.00

6
DTTAG Website
Regularly updated DTTAG website

• Accessible and informative.
• Interactive send comments and messages
• Updated News Events on the Travel Trade
• Sponsorship details
• Minutes of meetings
• Stats show increased usage month on month

7
Standardization Charges

• Holiday Charges
• To recognize the level of effort that we all put
  into arranging holiday packages and in order to
  protect and enhance your income, DTTAG is
  recommending that all Travel Agencies with effect
  from 1 January 2008 charge a deposit of no less
  than AED 100 per package.  it is not unusual for 
  a holiday booking to take an experienced  travel
  consultant several  hours of research and
  planning and therefore a minimal charge to cover
  this effort is justifiable to your customer. This
  deposit would be refunded to the customer when
  the package is booked and paid.
• Refund Charges
• Using the time and knowledge of a travel
  consultant, administration, communication,
  financial reconciliation and loss of
  opportunity are the main elements why DTTAG
  recommends all travel agent to charge a minimum
  DHS100.00 refund processing fee on the top of
  airline charges. .Passengers accept that airlines
  charge cancellation fees then why not the
  agents? The ever increasing cost of running
  business is the main challenge for any businesses
  entity.  Our valued customers must comprehend and
  adhere to our request and pay the cost of unpaid
  services if we are to continue to provide them
  with a wide range of quality travel products and
  services.
• Reissues etc.,
• DTTAG recommends that we levy a Miscellaneous
  Service Charge of Dhs. 25/- per passenger, for
  reissue of tickets revalidation of tickets
  reconfirmations authority to board messages. 
• These activities are time consuming and labour
  intensive particularly when reissued documents
  have to be forwarded to the airline office
  concerned

8
Key Issues

• IATA Bank Guarantees
• IATA SSI Issues
• 0 commission
• By Laws No. 6

9
IATA Bank Guarantees

• DTTAG researched alternatives to BGs
• Entered into discussion with IPP, IATA and EK.
• Introduction of Default Insurance Scheme in lieu
  of BGs.
• List of agents willing to participate in the
  scheme (advise DTTAG)
• Agents to advise IATA Gulf HQ of sales figures
  and default history last 2-5 years.

10
IATA SSI Update

• The PA Conference approved limiting SSI
  participation to GSAs only, regarding the
  amendment of Resolution 850a governing the SSI
  programme in the GA
• Currents SSIs (non GSAs) must convert to IATA
• Deadline for such conversion to be decided at the
  next PAConf

11
Managing 0

• A review of other markets shows-
• Transaction fees can be structured to cover
  expenses and generate profit margin.  
• Airlines do not adopt zero commission
  simultaneously so transparency essential.
  Transaction fees charged to all customers and
  commission refunded for airlines paying
  commission to the agencies.Thus customers do not
  have to be informed each time an airline moves to
  zero commission.
• Travel Consultants need training to charge the
  fees and for up selling / cross selling. 
• Accounting systems need to be upgraded to handle
  the change and MIS reports should reflect the
  service charges.

12
Managing the Transition

• Staff to be educated on the value they deliver.
• Travel companies to focus on products and
  services consumers will find difficult to locate
  and book on the web.
• Specialise in specific products and destinations,
  develop niches to differentiate from competitors
  and help improve profitability.
• Notify clients of service fees and any
  additional fees - up front.
• Effective communication and awareness building
  with customers is key to ensure changes are
  understood and accepted.

13
The Way Forward

• DTTAG recommends-
• Travel agents concur with key airlines approach
  and include minimum service fee of 7 on all
  fares (including taxes,) on tickets issued after
  1st October.
• Individual agencies can consider increasing
  charges based on credit terms, volumes etc.
• Additionally, agencies should levy further
  charges for reissues, refunds, ok to board etc.

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Why 7

• Current rising costs warrant maintaining 7 as a
  minimum.
• Need to demonstrate to airlines our intent and
  ability to maintain income levels and comply with
  their recommended approach.
• By retaining optimum income levels, we can
  attract quality employees decent working
  environment adequate training and improve
  service standards that are currently of concern
  to all.

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Sample Service Fee Menu
16
By Laws No. 6

• By Law 6 in now being implemented by the DTCM for
  new licenses and renewals.
• Copy of the By Law is available on the DTTAG
  website, www.dttag.com

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Sponsors
EmQuest
Emirates Airlines
Holiday Autos
AIG Insurance
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DTTAG Office Location
Gold Diamond Park, Bldg 3, Office 3008, Sheikh
Zayed Road, P.O. Box 117227-Dubai, UAE Tel
971 4 3418799 Fax [phone]