BSP Training to Airline - PowerPoint PPT Presentation

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BSP Training to Airline

IATA HK

30 May 2006

IATA HK

IDFS: AAS, BSP, CASS, DPC
Address:

1203 Harcourt House, 39 Gloucester Road, Wanchai

Contact:

2528-9321 (Tel) 2520-0329 (Fax)

Web site & email address:

http://www.iata.org/hk
cshkg@iata.org

Office hours:

0830-1230 & 1330-1730 (Monday - Friday)

Regional offfice:

North Asia regional office in BJS

IATA HK - Contacts

Agent

(225)

Airline

(73)

CRS

(6)

IATA HK

DPC BJS

ACCA

ITS BJS

Clearing Bank

Citibank

Acquiring Bank

(6)

BSP HK

BSPlink

Ticketing System Providers

Airline Charges (I)

BSP joining fees

USD 10,000 - HK & MO
one-off payment at the time of participation

Standard Traffic Document (STD) charges

USD 0.062 (HKD 0.484) per coupon
monthly collection via global charging structure

Data Processing (DP) charges

USD 0.013 (HKD 0.101) per transaction
monthly collection via global charging structure

Airline Charges (II)

Local Management Fee (LMF)

50% equally shared by all airlines, 50% in pro rata to UTP & remittance $
annual amount advised by IATA HQ & re-cut at year-end
quarterly local collection by ACM

BSPlink login fees

USD30 per login (non-IATA airlines only)
monthly local collection by ACM

Charges for optional product

monthly local collection by ACM

Agent - Monitor/Control

Assessment before approval
Annual financial/staff/STD review
Bank guarantee from agents who fail assessment
Ad hoc on-site STD/staff audit
Ticket limit
Working supply of ticket stock
Industry Trust Fund

Industry Trust Fund

Protection of 30% to airlines
Disbursement after all efforts of recovery
Fund managed by TIC
Agents contribute $3 per valid ticket
Reimburse agents when fund > $10 million
Reimburse agents when agents relinquish
New Terms & Conditions finalized in July 2005

3 Airline Working Group

Local Customer Advisory Group (LCAG)

CX, CI, KA, JL, MH, LH, LX, NX, OZ, QF, SQ, TG, UA, IATA
advise to ISS management on local customer service issues

Executive Council (EC)

CX, JL, KA, MH, SQ, TG, UA, IATA & 7 agent representatives
consider all aspects of agency program

ISS Operation Working Group (IOWG)

BA, CI, CX, GF, JL, KA, KL, LX, MH, NH, QF, SQ, UA, IATA
follow up LCAG issues & make recommendations

 meeting minutes to all airlines by email

BSP Operations

Please refer to BSP calendar

(P. 1-2)

Resolution 832 Section 1

4 irregularities within 12 consecutive months  DEFAULT

admin charge  HKD/MOP 500.00 per transaction

Void Ticket Charges

Total allowance of 15%:

7% for technical voids
8% for other voids

3-tier void ticket charges

20% >no of void > 15% ($15 @)
50% >no of void > 20% ($30 @)
> 50% ($150 @)

Unreported Transaction

1st instance

$500 per transaction

2nd instance

1 irregularity + penalty of 50% of gross fare to airline

3rd instance & onward

1 irregularity + penalty of 50% of gross fare to airline + $500 admin charge to BSP

penalty to airline - minimum $1000 & maximum $5000

Documents

ISS Service Provisions-Passenger

BSP Calendar

agent sales summaryP(P 3-4)

BSP statisticsP(P 5)

IATA Agency ListQ(P 6-11)

ticket limit listQ(P 12-13)

ticket distribution listM(P 14-15)

IDFS HK Updates (P.16)

airline contact (P 17-26)

Document for Airline

Forms

ECCB participation(P 27)
airline contact(P 28)
refund grid(P 29)
refund eligibility time frame (P 30)
BSP Quick Reference (P 31)
email address (P 32)

D  Daily M  Monthly

P  Bi-monthly Q  Quarterly

Document for Agent

BSP Calendar
Travel Agents Handbook Resolution 810
BSP Manual for Agents
BSP Quick Reference (P 33-35)
Refund Grid (P 36)
Refund Eligibility Time Frame (P 37)
BSP Newsletter (P 38)

Standard Admin Forms

Refund Notice (P 39)
Universal Credit Card Charge Form

Standard Traffic Document

Auto Ticket

on OPATB2 coupon
Flight Coupon, Agent Coupon, Pax Receipt, Credit Card Charge Form

E-Ticket

on plain paper
share same pool of ticket number & same ticket limit with ATB2
Flight Coupon, Agent Coupon, Pax Receipt, Credit Card Charge Form

Auto MCO

on OPATB2 coupon
separate ticket limit & ticket number (form code: 191, 192)
Exchange Coupon, Agent Coupon, Pax Receipt, Credit Card Charge Form

OPATB2

Net Payable = 952-[(952+20618)*9%]+118

= - 871.30

ET on Plain Paper

ABACUS TRAVEL

ETKT **AGENT COUPON** 99999992 **ITINERARY**

CATHAY PACIFIC AIRWAYS 1 OF 1 CGHDLR/1B CX 504B HKGNRT 10APR

CHAN/TAI MAN MR BEE17

12MAR03 OCX 509B NRTHKG 15APR

BEE17

SUBJECT TO REFUND CHARGES

HKG CX TYO Q4.23 446.22CX HKG446.22NUC896.67END R

OE7.798680SITI

HKD 7000

80HK FP/VI4100000000000001 M00880009/06

134SW FCI04

40YR

HKD 7254

160 9698127788 2 PRI FFVV

7766/ HKD 7000 0700254

ET in HK

Implemented in 1998
Certified ET system providers

Abacus, Sabre, Amadeus, Worldspan, Galileo, TravelSky
test not required if launched in other BSP via same GDS

IATA ET target

40% by 2005 !
72% by 2006 !!
100% by 2007 !!!

ET implementation Stat(P.40)
Reissuing Paper Ticket into ET(P.40)

Auto MCO

Auto Ticket & AMCO in Billing Analysis

Comments: Tour code  Credit Card details  RFIC

Ticket Limit

Controlled by CRS
Limit in terms of number of ticket per period
Airline decide on total ticket limit
Agent decides allocation among CRS (P 41)
New authorization or permanent change

must be coordinated by IATA office
inform IATA 1 working day in advance
effective from 1st day of next BSP period

Temporary change

airline liaise with GDS directly

Remit Schemes

Normal & 3 Net Remit schemes:

Credit Card Sales

By default, for normal tickets only
Net fare on credit card at individual airline’s discretion

NR2A

airlines absorb all merchant fees
implementation without involvement of IATA

NRCC

airlines absorb merchant fees on net-fare
agents absorb merchant fees on mark-up
Inform IATA at least 1 month in advance before implementation

Refund with airline directly
Daily ECCB processing

Credit Card Charge Form

2 types of CCCF

automated ATB CCCF coupon
manual CCCF (submission of CCCF required only)

Submission

1st 3 cps of CCCF + copy of agent coupon (submission of CCCF required only)

Reporting deadline

2 working days after ticket issue
penalty at HKD 500.00 per transaction

Reconciliation

DPC follow up unreported cases
reconciliation report to airline at the end of sales period

Output for Airlines

2 daily output:

CSI for airlines report (invoice report-RPAICCDT)
Daily credit card summary (RPAIDCSM)

Zipped into 1 file

HKafXXXX _yyyymmdd_eccbyymmdd.zip

CCCF sent to airlines by DHL every Monday

Invoice Report & Summary

Invoice report (RPAICCDT) (P. 42-44)

details of every credit transaction
filename: HKafXXXX_yyyymmdd_adhi00.pdf

Invoice summary (RPAIDCSM) (P. 45)

total sales per card
total sales of all agents
filename: HKafXXXX_yyyymmdd_dcsmhi00.pdf

Refund Procedures

Refund with BSP or Airline?

Check against BSP Quick Reference

No( in-Direct Refund)

Yes (Direct Refund)

BSPlink Refund Application

Auto Refund

Refund Notice

Printout

Refund Notice

+

Supporting Documents

Separate envelopes

Sort in ascending

for different Airlines

order

Send to BSP as part

of report submission

Send to BSP as part

of report submission

Auto Refund

For tickets refundable with BSP
Refund Notice not for reconciliation purposes
Exceptions

net refund amount with decimals
commission rate has decimals
late MCO from airline
no ticketing authorization

guidelines for agents

Auto Refund - Refund Notice

Calculation of net refund amount:

1. Net Refund = (6990*.93)+120+93+234-125=6822.70

2. Net Refund = (6990+120+93+234-125)-(6990*0.07)=6822.70

Auto Refund - BSP Report (Cash)

Auto Refund – BSP Report (Credit Card)

Balance Payable (CC sales only) = -357.70 (recall commission)
Balance Payable (Cash+CC) = -18.00

(Transaction Cash – Taxes – Commission)

Auto Refund – (Credit Card)

954

Refund Notice

BSPLink Refund Application workflow

Agent issue RA in BSPlink

Agent submit RA printout + supporting docs to airline

Airline check if docs are complete & refund is valid

Yes

No

Airline calculate or check ref amount

Airline reject RA in BSPlink

Airline check if refund is credit card

(submission of CCCF required)

Agent follow up RA

Yes

No

Airline enter & auth ref amount in RA

Airline send refund to their HO

Airline reject RA in BSPlink

Ref amount auto inclusion in report

Refund Application (I)

Use BSPlink Refund Application form (P 46)

paper refund application not accepted (except basic agents only)

Refund Application number

prefix “5400” + 6-digit serial number

Submission to airline directly:

Printout + Flight Coupons + Passenger Coupon
Printout + Electronic Ticket record (E-ticket)

“Refund to Passenger” is gross refund amount

Net Refund = Refund to Pax - Commission

Refund Application (II)

Authorize or reject

airline start processing upon receipt of documents
auto inclusion in current billing once authorized

Operations

airline can only modify the stub area
agent can delete or modify if not authorized
airline cannot delete when authorized
value in "Sub total credit" is exactly the amount to be refunded to the cardholder via credit card company

Refund Application Query

Authorize or reject

Refund Authorization & Rejection

0

Click to reject

Click to authorize

Refund Authorization

Airlines Remarks

Refund Application – Credit Card

credit card number

Refund Application in Billing–Credit Card

Airline – ECCB report

Airline – Billing report

Refund Application in Billing – Credit Card

Refund Application in Billing - Cash

ADM & ACM Workflow

Airline issue ADCM in BSPlink

Agent dispute the ADCM

Yes

No

Agent provide additional info or doc to airline

ACM auto inclusion in current report

ADM will be automatically kept

on hold for 14 days

Airline deactivate ADCM in BSPlink

Airline investigate if dispute is honourable

No

Yes

Airline delete original ADCM in BSPlink

Airline activate ADCM in BSPlink

Airline raise ADCM of different amount

ADCM auto inclusion in report

Yes

No

AL raise new ADCM

No further action

 IATA Resolution 850m

ADCM in report

ADM & ACM Issuance

2 options BSPlink: online form & upload
Operations

“Reason for Memo” – 20 lines x 45
no modification once issued
can delete or deactivate if not billed

ADCM number

ADM – “60” + 3-digit airline code + 5-digit serial number
ACM – “81” + 3-digit airline code + 5-digit serial number

Fare & Tax

for ADM, Airline’s Calculation > Agent’s Calculation
for ACM, Airline’s Calculation < Agent’s Calculation

ADCM Form

specify billing period

(ADM will be automatically kept

on hold for 14 days)

only “Difference” will be reported

Replace manual Adjustment Request Form
Airlines may switch off during transitional period or reject
Will phase out all manual Adjustment Request Form end of this year
Serial No

ADM Request: 67777 00000 – 67777 9999
ACM Request: 87777 00000 – 87777 9999
Number will be automatically assigned as soon as an agent raised a request

ADM/ACM Request (II)

Email Alerts

Auto sent to Enhanced airlines after agent make ADCM requests
Auto sent to Enhanced agents after airlines authorize or reject ADCM requests

Supporting Documents

Agents are still required to submit supporting documents to airlines
Airlines may consider to allow agents to use the “attachment” function to make online submission where appropriate