Many travel agencies often find themselves in a frustrating situation where they receive a very large airline debit memo which amounts to a substantial financial burden, often reaching high five figures. The process of disputing these memos using ARC’s Memo Manager can be quite challenging, as most airlines tend to respond with a generic denial and insistence on payment, without taking the time to address the agency’s defense. This situation is unfortunately all too common, especially for smaller agencies with lower ARC sales volumes.
If you are facing difficulties in resolving a large airline debit memo, there are several options available to you. One potential avenue is to leverage the support of a consortium, franchise, or host agency that may have more influence and clout with the airline. These entities can engage with the carrier on your behalf and potentially prompt a more thorough review of the situation. Additionally, enlisting the help of an attorney to draft a formal letter to the carrier can sometimes yield positive results, especially if the attorney has established connections within the airline’s legal department.
Legal Recourse as a Last Resort
While mediation or arbitration processes are not typically available for airline debit memo disputes, there is a legal option that you can pursue, albeit at a significant cost. By engaging an attorney to file a lawsuit for a “declaratory judgment,” you can compel the airline to provide a substantive response and present supporting documentation for their position. Although this route can be expensive and time-consuming, it may be necessary if you are unable to reach a satisfactory resolution through other means.
In some cases, it may be prudent to adopt a wait-and-see approach and observe how the situation unfolds. While the risk of having your agency’s ticketing privileges revoked by the airline is a possibility, it may not have a significant impact on your operations if you do not frequently issue tickets on that specific carrier. Moreover, airlines are typically reluctant to escalate matters to legal action, preferring to address disputes through administrative channels.
Dealing with a large airline debit memo can be a daunting challenge for travel agencies, particularly those with limited resources and bargaining power. By exploring various avenues for resolution, including seeking assistance from industry partners and legal professionals, agencies can improve their chances of achieving a favorable outcome. While the process may be arduous and costly, taking proactive steps to address the issue can ultimately lead to a more satisfactory resolution.