Learning Outcomes:
By completing this lesson, you will be able to:
Describe the BSP ticket issuance, reporting and remittance process
Identify the steps in reporting and remitting sales through the BSP
Introduction
This lesson will provide you with a greater understanding of how the BSP system works in relation to ticket issuance, reporting and remittance.
The Process Flow: How A BSP Works
As mentioned in Lesson 1, a BSP is the central point through which sales data and funds flow between travel agencies and airlines.
IATA Accredited Agents receive one Billing Analysis Report and issue one single payment to the BSP (called a remittance), which covers sales for all BSP Participating Airlines in a given sales period.
The BSP DPC produces one Billing Analysis Report and the BSP instructs the Clearing Bank on amounts to be settled to each BSP Participating Airline for sales issued by the IATA Accredited Agents.
Preliminary Steps
Before an IATA Accredited Agent can begin selling airline tickets on behalf of airlines, the following preliminary steps must be taken. . . .
Preliminary Step 1
Agencies must have access to an IATA-certified ticketing system such as a Global Distribution System (GDS) or a Ticketing System Provider (TSP). A range of electronic ticket numbers are assigned by IATA to the GDS or TSP and then assigned to the Agent for ticket issuance.
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DID YOU KNOW
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a GDS is a computerized reservation system used to create passenger reservations and issue electronic tickets? The major GDS systems in the world are: Amadeus, Galileo, Sabre and Worldspan.
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Preliminary Step 2
The Travel Agent has to obtain ticketing authorities from the BSP Participating Airlines on whose behalf the Agent intends to issue electronic tickets. This is done by contacting each airline individually.
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Key Learning Points:
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In order to be able to issue tickets, an Agent must first be assigned a range of electronic ticket numbers as well as the authority to issue tickets on behalf of BSP Participating Airlines.
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Reporting Steps
Reporting by travel Agents is a process involving two steps and two entities —
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Reporting Step 1
All electronic transactions (electronic tickets and refunds) are reported electronically at the end of each day in a single data file by the agent's GDS or TSP to the BSP DPC.
Reporting Step 2
When the Data Processing Centre receives all the ticket and refund data, it:
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Validates and processes all relevant data
Produces a report called an "Agent Billing Analysis" for each Agent
Produces an "Airline Billing Analysis" for each Airline
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The Agent Billing Analysis contains all tickets and refunds issued by the agent during the billing period.
The Airline Billing Analysis contains all tickets and refunds issued for the airline by all its agents during a billing period.
Payment
Agent Payment
The Agent issues one payment called "Remittance" covering all its BSP transactions for the billing period for all BSP Participating Airlines. The BSP preferred method of remittance is by electronic fund transfer (EFT).
Airline Revenue Accounting Control
The revenue accounting department of an airline makes quality control and audit checks on the tickets issued by the Agent. Discrepancies and/or ticketing errors are addressed directly to the Agent, in the form of an Agency Debit Memo (ADM) or Agency Credit Memo (ACM).
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Key Learning Points:
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While the ticket sales are reported automatically daily through the Agent's GDS, the Agent has to input any refunds to the GDS system during the reporting period.
All the data is transmitted to the BSP Data Processing Centre (DPC) by the Agent's GDS.
The DPC validates the ticket and refund data received through GDSs and produces an Agent Billing Analysis containing all tickets issued by the Agent during the reporting period.
The DPC also produces an Airline Billing Analysis for each BSP Airline containing all tickets issued by Agents on its behalf.
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Important Dates
In order for the BSP system to operate efficiently, each participant needs to respect deadlines for the submission of data and remittance of payments. A calendar is established by the BSP that includes the following important dates.
REPORTING DATE
The reporting date is the last day of the reporting period.
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BILLING DATE
The billing date is the day by which the Data Processing Centre (DPC) must have produced the agent billing reports and when those reports must be available to Agents and Airlines.
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REMITTANCE DATE
This is the latest date by which the Agent's remittance must reach the Clearing Bank. The exact remittance dates are published annually to Agents in a Reporting Calendar.
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Now let's look up these dates for an agency located in Canada. . . .
Key Learning Points:
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BSP sets a Reporting Calendar, with deadlines by which reporting, billing and payment (remittance) must take place.
There are 3 main deadlines in the BSP Reporting Calendar for Agents: Reporting Date; Billing Date; and the Remittance Date.
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Study Check 
1.
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The three main deadlines for IATA Accredited Agent are the reporting date, the billing date and the __________?
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2.
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Which entity forwards to each BSP Participating Airline an Airline Billing Analysis containing all ticket sales made by IATA Accredited Agents on their behalf?
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3.
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Discrepancies are addressed directly to the Agent, in the form of a particular type of Memo. What is it called?
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4.
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The DPC processes all relevant data and produces a report called an __________ for each agency.
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5.
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Agencies need to have access to an IATA-approved ticketing system such as a __________.
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