The scale of ADM (Agency Debit Memo) losses took centre stage at Finchglow’s Partner Plus Connect Live, with industry leaders warning that the situation requires correction to stem unwarranted losses.
Leading the conversation, Managing Director of Finchglow Travels, Ezekiel Ikotun, revealed that industry-wide losses from ADM in 2025 have hit no less than ₦1 billion.
“As I mentioned last year, based on verified, validated statistics, by 2025 we lost nothing less than N1 billion to the ADM by the industry players. And when you trace some of the things raised they can be avoided. We have airlines that don’t even charge for ADM, simply because they put structures, systems and technologies in place to prevent such.”
He grounded the broader industry figure in Finchglow’s own experience, noting that the company alone has recorded significant annual losses.
“It’s been a major leakage for the past 20 years and averagely from my own system, we experienced a lot of leakages, which is nothing less than N70m yearly to this huge system.”
Ikotun was clear that ADM is no longer just an operational challenge. Instead, he framed it as a long-standing structural problem that has persisted for over two decades.
ADM as Compliance Tool and Revenue Lever
While ADM is officially a mechanism used by airlines to enforce fare rules and correct booking discrepancies, Ikotun suggested it has taken on an additional dimension within the ecosystem.
“For some airlines, ADM has become a product. It is now part of how revenue is generated within the system.”
He explained that while some debit memos are valid, others are often disputed especially when agencies have the systems and expertise to defend their transactions.
However, many smaller agencies lack that capacity, forcing them to absorb the charges.
“Simply because, this product to the airlines, most of the airlines outsource it. Now, to those agencies that are handling it, they’re going to be paid based on whatever they are going to make. At times, the ADMs aren’t even valid, though there’s a window for us to dispute.
Oftentimes, it can be via the GDS, if we follow due diligence, most times the GDS would ask us to send it to them and they will refund us. Sometimes, if it’s through the airlines, and we have reasons, when you say I did this and I have proof that I didn’t do it, most of the time, it’s been recalled.
But for some agencies that don’t have the knowledge to push back or defend this type of ugly situation, they are going to pay for it.”
Price Sensitivity Worsens the Impact
Ikotun linked the growing ADM burden to shifting customer behaviour. According to him, increased price sensitivity among travellers has squeezed agency margins.
This leaves little room to absorb unexpected charges.
“Customers are now highly price sensitive. If you lose even small amounts through ADM, you risk losing the entire deal.”
He added that the focus of the forum was not just to highlight the problem but to promote awareness and introduce solutions that can help agencies protect revenue.
Airlines Push for Transparency and Automation
Providing the airline perspective, Firihiewot Mekonnen of Ethiopian Airlines acknowledged the challenges while pointing to efforts aimed at reducing friction.
She said airlines are introducing system improvements that will make cost implications clearer during the booking process.
“We are developing systems that will notify agents of additional costs per segment, so they know what to expect before ticketing.”
According to Mekonnen, these automated notifications will act as a guide, helping agents avoid errors that typically trigger ADM charges.
She stressed that the goal is not to penalise agents but to ensure transparency and compliance across the booking chain.
Technology and Training as First Line of Defence
From the technology side, Travelport emphasised that many ADM cases are preventable with proper training and adherence to best practices.
The company highlighted that outdated booking habits and misuse of Global Distribution Systems (GDS) remain major triggers.
“ADM doesn’t give us joy. It eats into profits and shows gaps in how bookings are done across the industry.”
The Travelport representative, Senior Manager for Product And Helpdesk, Karen Ezechukwu, identified specific problem areas, including origin-and-destination (O&D) violations, improper ticket sequencing, and failure to follow airline inventory logic.
These issues often go unnoticed at the point of booking but later result in debit memos.
She also stressed that the travel industry is evolving rapidly, requiring agents to continuously update their knowledge and tools.
Knowledge Gap Driving Industry Losses
A key takeaway from the session was the role of knowledge gaps in driving ADM losses.
While larger agencies may have systems to detect and dispute incorrect charges, smaller players often lack the expertise to do so.
This creates an uneven playing field, where those with limited capacity bear a disproportionate share of the financial burden.
Ikotun noted that some airlines have already implemented structures and technologies that significantly reduce ADM occurrences proving that the issue is largely preventable.
Finchglow Positions Forum as Solution Platform
Rounding off the discussion, Head of Operations at Finchglow Travels, Ebiere Bekesuo, explained the importance of the Partner Plus Connect initiative.
She described it as a platform designed to close knowledge gaps and improve collaboration across the ecosystem.
“This forum brings airlines, GDS providers, and agents together to correct errors and help partners avoid losing money through ADM.”
Bekesuo noted that many agents operate without fully understanding the complexities of the travel industry, making them vulnerable to costly mistakes.
She added that Finchglow is also promoting newer solutions such as the New Distribution Capability (NDC), which reduces manual errors and improves booking accuracy.
“I see that sometimes the platform you use will determine the kind of errors you make and that’s the reason we’ve even introduced something new called the New Distribution Capability (NDC). On that platform, it is 100% assured that you’re not going to have those errors and those ADMs that my MD just spoke about. “
“So, introducing this NDC platform, would afford them (partners) the opportunity of maximising their profit, not losing money, but also doing things correctly, making their bookings correctly, and even getting many options to different routes that their passengers would want to go to.”
Industry at a Turning Point
The discussions at Finchglow’s Partner Plus Connect Live also involved major players like British Airways and Air France, each giving their perspectives and educating partners on ADMs. The conversations underscore a growing consensus: while ADM remains necessary for enforcing compliance, its current impact on agencies is unsustainable.
Better systems, stronger training, and improved transparency are emerging as the key pillars for reform.
Until then, ADM will remain both a safeguard and a significant financial threat within the travel ecosystem.
The event also featured the recognition of outstanding partners across key categories, highlighting excellence in collaboration and service delivery within the network. Credit Travels was honoured with the Overall Best Partnership (Premium Agent) award for its exceptional performance and consistency.
In the branch-specific categories, Aerovision Planet Limited emerged as the Best Partnership for Ikeja, while El Vacations Limited was recognized for Ikoyi.
Biomid Travel Center received the accolade for Apapa, Sarfun Travels was honoured for Victoria Island, and Excel Landsafe secured the Best Partnership award for Lagos Island, underscoring the strength and competitiveness of partnerships across the various locations.
