Travel Sector Crisis Deepens Over Credit Delays | By Joojo Maapa
The Ghana Association of Travel and Tour Agents (GATTA) is sounding the alarm about a serious issue plaguing Ghana’s travel industry—payment delays.
The group warns that this trend is putting many travel and tour companies at risk of going under.
In a statement signed by GATTA President Frank Annin-Bonsu and shared with AviationGhana, the group noted that when tickets are sold on credit, these agencies bear the financial burden immediately. “If clients delay their payments, it directly affects the agencies’ ability to meet their financial obligations, especially to international airlines via the IATA Billing and Settlement Plan (BSP),” they noted.
The Billing and Settlement Plan (BSP) is an integrated invoicing and payment system created by the International Air Transport Association (IATA).
Rather than having travel agents handle individual agreements and payments with each airline, the BSP streamlines the process by offering a single platform for all financial transactions. This centralized system is overseen by IATA to ensure consistency and reliability across the aviation industry.
With delayed payment by government agencies, corporate institutions and individuals, Smaller travel agents often struggle with cash flow due to frequent payment deadlines, which can be hard to meet. Even with security deposits, late or missed payments from agents put airlines at financial risk.
According to the International Air Transport Association (IATA) Billing and Settlement Plan (BSP), ticket payments are typically due within about 14 days—regardless of whether the agency has received payment from the customer.
Some airlines have even shortened that window to just seven days, which puts immense pressure on travel agencies that are already trying to cope with rising operational costs and other expenses.
GATTA reminds customers that they do more than just sell tickets; they manage the whole process. Timely payments are crucial for covering operational costs, taxes, and other unavoidable expenses
Industry insiders are also noting that ongoing issues like ticket cancellations and requests for extended credit are cutting into already slim profit margins in Ghana’s travel sector.
This warning comes at a time when Ghana’s tourism and travel industry is actually growing, with the Ghana Tourism Authority overseeing hundreds of travel operators nationwide. The sector has the potential to create up to 150,000 jobs, so the stakes are high.
GATTA is urging for better payment discipline and more structured credit systems. The group warned that if things don’t change, many small and medium-sized travel companies could face serious financial trouble, operational collapse, and even job losses in the near future.
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