China Southern Airlines GDS Booking Policy

Please find the circular from China Southern Airlines regarding the booking policy and O&D sales guidelines required to strictly follow in order to avoid ADM.


Business Circular

Date: 1st MAY 2019
To : All CZ sales office and agents
Subject: China Southern Airlines GDS Booking Policy 
Dear Travel Agents,
In an effort to reduce distribution costs without compromising the many services we offer to our customers, China Southern Airlines (CZ) has implemented a formal GDS booking policy. The policy is intended to reduce the costs associated with inactive segments and other booking-related practices which cause negative inventory consequences.
This policy applies to all GDS subscribers including travel agents (Accredited and Non Accredited) . ( IATA and NON IATA agents both ) 
1.      Booking and ticketing policy terms
When the agent uses GDS to make reservations on CZ’s flights, the flight seat reservations and sales shall be carried out in accordance with the regulations of CZ. The following behaviors shall not occur:
a)    False ticket number
b)    False passenger information
c)    One ticket or one passenger name for multiple seats
d)    One passenger’s multiple flight trips that are not possible at the same time
e)    One passenger repeatedly booking and cancellation on same travel dates and OD
f)      Refund whilst holding inventory
g)    Invalid ticket whilst holding inventory
h)    Other irregularities ticket handling operations

1.2.    Removal of non-productive status codes
(1) During booking, agents should leave passengers’ contact or agents’ mailbox information in PNR. When agent receive Q message concerning schedule change or flight cancellation, agent has the responsibility to inform passenger as soon as possible through effective ways, such as email, phone call or messages on APP.
(2) GDS agents should promptly remove all non-productive segments with status codes of HX, NO, UC, UN, HL, SC, TL, TN, UU, US, PN ,WL, WN ,DL, DS, IX, MM, RM, GL from the PNR.

2.      Punishment on violation
2.1.    Accredited agents ( IATA )
For violation on ITEM 3 and cost unnecessary booking fee of GDS, the agent should compensate for the loss as below:

b)    Duplicate booking - Multiple seats for a passenger, including but not limited to multiple seats with the same origin and destination, or multiple flight trips that are not possible at the same time, and duplicated booking in different GDS. The agent should compensate for $8 per flight segment for duplicate booking.
c)    Churning - More than 3 times of cancellation and booking on the same passenger name, flight date and itinerary. 5 US dollars compensation for each segment since the fourth time.
d)    Inactive Segments - It is agent’s responsibility to monitor the queues and release inactive segments with HX, UN, UC, NO, SC, TK, TL, TN, UU, US, PN, WL, WN, DL, DS, IX, MM, RM, GL or WK status codes from the booking. Fail to remove these segments in 24 hours before departure would result in a 5 US dollars compensation for each segment.
e)    Fictitious Name - pay 8 US dollars per flight segment for compensation.
f)      Any other violations - 5 US dollars compensation for each segment.

2.2.    Non accredited agents ( NON IATA )

If more than 3 times violations are found, the agent will be blocked according to the BIDT billing audit data. If the agent applies for unblocking, it must compensate for the loss according to the violation standard of the accredited agents beforehand. 
China Southern Airlines will monitor all transactions to identify booking abuses and practices which are not in line with this policy.
 As always, we thank you for your support!

CHINA SOUTHERN AIRLINES COMPANY LIMITED
Passenger Marketing & Sales Division



O&D SALES GUIDELINES


1. Definition and System Setup Parameters

1.1 Definition of O&D

O&D is the abbreviation of Origin & Destination (hereinafter abbreviated as OD), which refers to the travel demand of passengers from the place of origin to the destination. The system splices the flight segments into an end to end itinerary according to certain rules, and judges the passenger value. Generally, continuity, connecting time, round trip, and deviation rate are the key factors to determine whether an itinerary should be considered as a single OD.

1.2 System Setup Parameters of O&D

1.2.1 OD is not the concept of segment. OD needs to meet continuity requirements, which means the destination of the former segment and the origin of the latter segment shall be the same city. At present, when the transit points are the different airports in the same city, the system will consider the itinerary as a single OD.
1.2.2 OD needs to meet connecting time requirements, which means connecting time between domestic flights shall not more than 8 hours; connecting time between domestic and international flight shall not more than 24 hours; connecting time between international flights shall not more than 24 hours.
1.2.3 3. The destination of the latter segment shall not be the same as the origin of the former segment, which means round trip and open jaw itinerary will not be considered as a single OD but combined by multiple ODs.
1.2.3.4 At present, the deviation rate set by the system is no more than 3. When the deviation rate of an itinerary exceeds the set parameters, the system will consider the itinerary is combined by multiple ODs.

1.3 Definition of Married Segment

If two or more segments are spliced into an OD and evaluated according to the OD revenue management, all segments will be identified as married segment.
Segments with class indicators followed by the same numbers in PNR means they belong to the same married segment group, and multiple married segment group can be existing in one PNR. For example, segments with class indicators followed by number 1 means they belong to the first married segment group, and segments with class indicators followed by number 2 means they belong to the second married segment group, and so on. Different number means different married segment group.
Screenshot example from Travelsky is as below:

2 Operation Rules

OD revenue management is a process of dynamic evaluation of value. The system inputs all the final optimization results into the process, and then performs the evaluation of value to complete the effective allocation of seat resources.

2.1 Booking and Ticketing

2.1.1 In OD mode, the display result of availability is a dynamic display process. The system will recalculate in each query according to the current inventory. Queries and reservations can get more accurate results in OD mode.
2.1.2 When enquiry, the system will provide with the latest availability results according to the PNR that has not yet been transacted/signed. If need to create a new query, please make sure that the PNR has been transacted/signed or ignored, otherwise availability results may be affected.
2.1.3 When booking and ticketing, please process according to the real travel intention of passengers. After booking according to OD rules, the corresponding segments will be bound as married segment. The booking of a connecting OD through separate local ODs (availability requested per segment) shall be considered as a married segment abuse.
2.1.4 If the married segment group is partially cancelled, the system will give feedback on acceptance or rejection based on the system evaluation. If cancellation is accepted, the corresponding segments will be deleted; if cancellation is refused, the reservation system will prompt CAN NOT BE CANCELLED, and reservations will only be accepted if the whole married segment group is cancelled at the same time.
2.1.5 When the passenger requests to issue tickets separately in multi-segment transport, the sales staff should take the initiative to inform the passenger of the change and refund regulations, baggage rules, requirements of flight documents for different types of tickets, and that separate tickets cannot enjoy the through check-in service. The tickets can only be issued after passenger’s approval.

2.2 Ticket Change

2.2.1 Voluntary Change

In the case of voluntary change, whether the married segment can be cancelled depends on the real-time evaluation results of the system. If the married segment group can be partial cancelled, the subsequent steps can be taken. If the married segment cannot be cancelled (the system prompts CAN NOT BE CANCELLED), then the married segment group should be cancelled at the same time before applying for the new itinerary.
For example, the system prompts CAN NOT BE CANCELLED after partial cancellation of the PNR, then it is necessary to cancel the whole married segment group.
Screenshot example from Travelsky is as below:

Since the new reservation may result in large fare difference, the sales staff must inform passenger of the fare arising from such changes in advance, and the passenger shall accept the fare difference before the sales staff processes the ticket change.

2.2.2 Involuntary Change

Due to the flight disruptions, the corresponding married segment will be automatically unbound according to the flight change information in PNR. If the married segment group can be partial cancelled, the subsequent steps can be taken. If the married segment cannot be cancelled (the system prompts CAN NOT BE CANCELLED), after verifying the involuntary situation, the instruction can be executed through the corresponding married segment group: MSC BSR/segment number/segment number…. After that, segment cancellation, reservation and ticket exchange can be operated. If it is necessary to re-bind the married segments due to human errors, after verifying the situation, the instruction can be executed: MSC BPS / section number/section number/ to re-bind the married segment.
For example, the first flight is disrupted and needs to process involuntary change, and the system displays that the segment 2 cannot be cancelled. Screenshot example from Travelsky is as below:

As segment 1 and 2 are belong to the same married segment group which are applied to involuntary handle procedure, the sales staff can unbind the married segment by using instruction MSC:BSR/2/3, then cancel the segments and process as usual.
Screenshot example from Travelsky is as below:

The manual unbinding of the married segments of tickets under involuntary situation can only be operated by prior authorization (11/12 level) in ICS system. The agent shall contact its authorized CSN sales office (including customer service center) in the situation of involuntary change unbinding.

The CSN sales office (including customer service center) must strictly follow the rules of OD system to operate instructions, or a notice of criticism will be circulated when unbundling against the rules.


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