Learning Outcome:
By completing this lesson, you will be able to:
Introduction
The BSP system has its own language and terminology.
In this lesson you will learn the main terms used in the BSP system followed by their definitions and examples in which these terms are used.
You will find this knowledge valuable as you progress in your learning about the BSP and the internet-based communications and reporting tool called "BSPlink®".
This course also contains a glossary with shorter definitions. You may access the glossary by clicking the link on the left toolbar.
Passenger Sales Agency Agreement (PSAA)
The Passenger Sales Agency Agreement is the contract between a Travel Agent and IATA on behalf of BSP Participating Airlines.
A Travel Agency that has met the requirements and signed this agreement with IATA is called an IATA Accredited Agent.
|
|
IATA (International Air Transport Association) and BSP (Billing and Settlement Plan)
The International Air Transport Association (IATA) is the international industry trade association of airlines.
IATA's mission is to represent, lead and serve the airline industry.
IATA represents some 230 airlines comprising 93% of scheduled international air traffic.
Currently, IATA is present in over 160 countries covered through 101 offices around the globe.
The BSP facilitates reporting and settlement of sales between IATA Accredited Agents and IATA and non-IATA scheduled airlines.
|
IATA and the BSP
IATA is pivotal in the worldwide accreditation of travel agents.
Over 80% of Airlines' sales come from IATA Accredited Agents through IATA BSPs (Billing and Settlement Plan).
IATA administers worldwide the BSP and coordinates the reporting and remittance of ticket sales of IATA Accredited Agents to BSP Participating Airlines.
|
GDS (Global Distribution System) and TSP (Ticketing System Provider)
GDS is the abbreviation for Global Distribution System.
A GDS is a reservations and back office system used by Travel Agent to make reservations and issue tickets for airline travel, hotel accommodations, car rental and other travel products.
An Agent may also use the ticketing services of a local or regional IATA Certified Ticketing System Provider
|
Example:
These are some of the Major GDS systems worldwide: 
|
Data Processing Centre (DPC)
The Data Processing Centre, also known as "DPC" receives all tickets issued by the Agent as reported by the Agent's ticketing system.
The DPC validates and processes all the ticket sales data and produces sales reports, statistics and billing information that is used to settle payments between IATA Accredited Agents and BSP Participating Airlines.
|
|
"BSPlink®"
"BSPlink®" is the global interface for Travel Agents and Airlines to access the IATA Billing and Settlement Plan (BSP).
IATA Accredited Agents and BSP Participating Airlines access their Billing reports and issue refunds and corrections to Billings through BSPlink.
|
This is an image of the "BSPlink®" home page. 
|
Reporting Calendar
In order for the BSP system to operate efficiently according to agreed procedures, each participant needs to respect deadlines for the submission of transactions , availability of Billing reports and remittance of payments.
A Reporting Calendar established by the BSP includes the three main dates. The three main dates are:
|
 |
Agent Billing Analysis
The Agent Billing Analysis is a Billing report that is issued by BSP DPC through "BSPlink®".
The report lists all tickets and transactions issued by an Agent during reporting or a billing period.
The Agent Billing Analysis presents the accounting information of each issued ticket.
In some countries, the report is called an "Agent Billing Statement and Analysis", and it also includes a section with the agent sales' subtotals per airline.
|
Agent Billing Analysis reports (B/As) may have a different format depending on the country in which they are produced due to local variations. However, B/A contains all the billing information relevant to that country.
An example of an Agent Billing Analysis is on the following page.
|
This is an example of an Agent Billing Analysis.
This report covers the sales of a two week Billing period for a Travel Agent based in South Africa.
|
Agent Billing Statement
The Agent Billing Statement is a Billing report issued by BSP DPC through BSPlink.
The report shows subtotals of sales per Airline and Total sales for tickets issued by an Agent during a billing period.
The Agent Billing Statement is the basis for Agent remittance of monies owed to the Airlines.
|
Agent Billing Statement reports (B/Ss) may have a different format depending on the country in which they are produced due to local variations. Billing Statement informs the Agent the Remittance amount.
An example of an Agent Billing Statement is on the following page.
|
This is an example of a Billing Statement showing Agent sales by carrier.
Virtual MCO (VMCO) and Virtual MPD (VMPD)
Virtual MCO
A Virtual MCO or Miscellaneous Charges Order (VMCO) is used for a number of different business reasons, including payment of excess baggage, tour orders and special services. The V-MCO is issued in the GDS/TSP system.
|
Virtual MPD
Like the MCO, the Virtual Multi-Purpose Document (V-MPD) is used for a number of different business reasons, including payment of excess baggage, tour orders and special services.
The V-MPD is issued in BSPlink.
|
Agency Credit Memo (ACM)
An Agency Credit Memo, also known as an ACM, is a notification sent from an Airline through BSPlink to an IATA Accredited Agent when an Airline owes the Travel Agent money.
|
Agency Debit Memo (ADM)
An Agency Debit Memo, also known as an ADM, is the opposite of an ACM.
It is a notification sent from an Airline through BSPlink to an IATA Accredited Agent when the Agent owes the Airline money.
|
Example:
Typical examples of reasons for ADMs, include:
Adjust an incorrect fare calculation by an Agent
Recall retained commission which is not payable
Bill a transaction that was not reported by the Agent through the BSP
|
Direct Refund (Refund Notice)
When a passenger does not use their issued ticket and the date of issue has passed, the Agent must issue a refund.
Direct refunds should be issued through the Agent's GDS/TSP.
|
|
Refund Application
A Refund Application is issued when an Agent cannot issue the refund directly through the GDS/TSP, but requests the Airline to evaluate the refund value.
The Airline receives the electronic Refund Application through BSPlink, calculates the refund value and submits the authorization through BSPlink® to be included in the Agent's billing.
|
Ticketing Authority
Ticketing Authority (TA) is the Airline's authorization to IATA Accredited Agent to issue tickets on its behalf.
When a travel agent becomes accredited by IATA in a BSP country, the BSP Manager requests all Participating Airlines to update the Agent's apply Ticketing Authorities records in BSPlink.
Airlines may not grant Ticketing Authorities automatically to all Agents. The airlines can choose which IATA Accredited Agents will be assigned a Ticketing Authority.
|
Example:
The virtual Ticketing Authority to sell tickets for an airline was earlier referred to as a Carrier Identification Plate (CIP) or a Plate, as the airline number and name was imprinted on a manual ticket using a CIP.
However, now electronic tickets are the industry standard and the list of the Agent's Ticketing Authorities is available in BSPlink® and GDS/TSP systems. If an agent is missing a Ticketing Authority, the Airline in question must be contacted directly by the Agent, as only the Airline can grant a Ticketing Authority through BSPlink®. BSPlink® system will then send an update to GDS/TSP system to allow Agent to start ticketing for that Airline.
|
Email Alert
An email alert is a form of communication between the BSP, Agents and Airlines in BSPlink®.
Email alerts contain notifications and modifications or updates to "BSPlink®" transactions and services.
|
Example:
For example, when an Airline assigns a Ticketing Authority to a Agent and the email alert function has been enabled in "BSPlink®", the Agent will receive a notification of the assignment by email.
If an Airline approves a Refund Application, then the agent will also be notified by email.
Email alerts are normally sent to Agents immediately, with the exception of Agency Debit Memos and Agency Credit Memos, for which Agents are alerted once a day.
|
The lesson ends with a set of review questions. Test the knowledge you have gained in Lesson 5! At the end of the set of questions, you will be provided with the correct answers for review.
When you have completed the review you may continue to Lesson 6 — Module Summary.
Lesson 5 — BSP Terminology
10 Review Questions
1.
|
The notification by an Airline to a Travel Agent notifying that the Agent will be charged for an amount it owes to the Airline is known as:
|
A. Agency Credit Memo
B. Agency Debit Memo
C. Multi-Purpose Document
D. Data Processing Centre
2.
|
BSP establishes a sequence of dates each billing period on which the Billing reports need to be available and by which Agent Remittance needs to be paid. What is it called?
|
A. Clearing Bank
B. Agent Billings Analysis
C. BSP Reporting Calendar
D. Billing Period
3. BSP DPC and BSPlink issues the following documents except:
A. Agent Billing Statement and Analysis
B. Breakdown of Agent Sales by carrier, i.e Billing Statement
C. Agency Debit Memo
D. Electronic Tickets
4.
|
The term "Ticketing Authority" means which of the following?
|
 A.
|
The appointment of banks by BSP to settle payments between Airlines and Travel Agents
|
B.
|
The enabling of Travel agent branch offices to access the BSP
|
C.
|
The assignment of Travel Agents by Airlines to sell tickets on their behalf
|
D.
|
None of the above
|
5.
|
The financial organization established by BSP in each country to settle payments between Airlines and Travel Agents is called:
|
A. Clearing Bank
B. Data Processing Centre
C. BSPlink
D. BSP Manager
6.
|
The central point to which Travel Agent sales are reported and which validates and processes sales data is called:
|
A. Clearing Bank
B. Data Processing Centre
C. BSPlink
D. BSP Manager
7.
|
A Travel Agent has just received an e-mail message from BSP about a new ADM (Agency Debit Memo) issued by an Airline. This is called:
|
A. An Agency Debit Memo
B. An e-mail alert
C. An Agent Group
D. A Refund Application
8. An ACM (Agency Credit Memo) is used in which of the following circumstances?
A. When the Airline owes the Travel Agent money
B. When the Travel Agent owes the Airline money
C. When the Passenger owes the Travel Agent money
D. When the Passenger owes the Airline money
9.
|
The payment by a Travel Agent to the IATA BSP as stated in the Agent Billing Statement is known as:
|
A. Agent Remittance
B. A Virtual MPD
C. Airline Debit Memo
D. Refund Application
10. Amadeus, Galileo, Sabre and Worldspan are examples of:
A. Travel agencies
B. Airlines
C. Global Distribution Systems
D. Clearing Banks
