Rising Conflict over Agency Debit Memos

Chinedu Eze

There is a growing conflict between international airlines and travel agencies in Nigeria, which has to do with Agency Debit Memo (ADM), a kind of deterrent measure against agents who violate the booking process.

It is a formal document issued by airlines to travel agents through Billings and Settlement Plan (BSP) whereby airlines are penalised by billing them to deter them from violating the booking process.

The travel agents on the other hand accuse airlines of using the system to rip them off, arguing that the airlines can use technology to remove false bookings from their system.

It is estimated that in 2025, travel agencies in Nigeria lost about N1 billion to the airlines, a development that compelled agents in Nigeria to insist that international carriers that operate to the country must drop the system, noting that some airlines have modern system that sieve through bookings and reject those that are false.

The issue resurfaced in Lagos at the PartnerPlus Connect Live, organised by Finchglow Travels with the theme: ‘Profit Protection & ADM Control Strategies’.

The Managing Director of Finchglow Travels, Ezekiel Ikotun, explained that Agency Debit Memo had been an official notification issued by airlines to travel agencies or booking agents. According to him, it is a charge from an airline to an agent for booking-related issues.

He described the Agency Debit Memo as huge slippage that has been existing in the last 20 years, disclosing that Finchglow alone has lost about N70 million in one year to the system.

He said that the matter must have to be reviewed by airlines because travellers have become price sensitive and their behaviour has changed, so every penny counts.

“Based on verified, validated statistics, by the end of 2025, the industry lost not less than N1 billion to the ADM. And when you trace some of the things that have been put in place, it can be avoided. We have airlines that don’t even hit the ADM, simply because they put structures, systems, and technologies in place to prevent it,” Ikotun said.

In other words, some airlines have sophisticated system that reject a booking request that violates the process instead of accommodating it and billing the travel agencies.

“So, we’re bringing this up simply because we want to educate both the airlines and the partners, to let them see some of the new technologies available in the industry and globally, which can help save our partner’s rental income. And also for the partners, to be aware of what to do to avoid losing money,” Ikotun said.

He also alleged that some airlines might be using the punitive system as revenue generating window because these airlines appointed agents that bill the travel agencies and generate funds from them.

“Those agencies that are handling the process for the airlines are going to be paid based on whatever is possible (generated). Sometimes the ADMs aren’t even valid, even though there’s a window for us to distribute them.” Ikotun added.

Reacting to the allegation, the Sales Manager of Ethiopian Airlines in Lagos, Adetola Alabi, denied the allegation that ADM is used by airlines to generate income and dismissed the allegation that it is a weapon used by airlines to fiscally punish travel agencies.

According to her it helps to ensure that those violations do not occur in the system.

“Remember, regardless of what the agency does, the airline has paid. There’s no weapon anywhere. That’s why we try as much as possible to do all of those things that will minimise all of those costs. The travel agencies are our partners and we don’t want to bring any hardship to our partners. Number one thing is intermittent training. Number two is an upgraded software, which we have also done now, that if you do this (violate the process), it will be like a pop-up for warning.

She alleged that there could be efforts to circumvent the system while booking for tickets, hence the deterrence, disclosing that even when the system signals the booking agent (pop up) that there is an error, some ignore the signs and continue to make the booking.

“Remember again, systems are built by people and other people move to circumvent that system. Do you know that even some people, after it pops up and it warns them, they will still bypass it? It is only when the cost comes, you hear them cry. We are not weaponizing any punishment against anybody. We want to enable people to make profit and I love this game. I don’t want an airline to sell for N2 million and then they are bringing in N3 million as a loss and that is why it is good to do it right too. How do you see it when someone enters fictitious names 294 times? It is ridiculous. So even with the system in place, people will still circumvent it. We don’t just forgive such deliberate act,” she said.

According to Alibi, airlines don’t want people to be manipulating the systems.

“A fare they were meant to buy for N3 million, they manipulated it and they paid for it at N1.2 million. Remember, the airlines do this business and they still want to make money. So, let’s all do it right. If you need a promo ticket, you can quickly put that in advance. If you need a seat to be confirmed, you can always bring it to us, we will confirm it, as long as that seat is available and that we are partners.

So, there is a system, there is training, and we try as much as possible to keep doing this over and over so that everybody can be happy again,” Alabi said.

Ethiopian Airlines’ Area Manager, Nigeria, Firiehiwot Mekonnen, further explained and said the airline was also advancing its technology for that process that would drastically minimise such violation and ability to circumvent the system.

She said the system would give signals (auto-message) to anyone making the booking in such a way that will clearly show any derailment in order to properly guide the agent while making the booking.

“We know that even though the system is automatic, the advancement being made will be more convenient for you. What we are trying to do now is that, we are developing a system that will definitely discourage the violation of the process,” Mekonnen said.

Speaking about the forum, Head of Operations Finchglow Travels, Ebiere Bekesuo, said the forum aimed to enlighten travel agencies, airlines and others. It is a forum where operators come to share knowledge.

“Over the years, we’ve had the programme where we bring in all our partners and even airlines and Global Distribution System (GDS) to come and share knowledge. The basic reason why we do this is because a lot of people do not understand the travel industry. The ecosystem is a place where if you’re not careful, you make a lot of mistakes and I’ve realised that over time, at least in my more than a decade in the industry, I’ve learnt that what you don’t know is bigger than you,” she said.

Now that the Agency Debit Memos issue has come to the front burner, there is indication that the conflict about it will be resolved between the airlines and the travel agencies.