Billing and Settlement Plan (BSP) BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines. A truly worldwide system: at the close of 2009, there were 86 BSPs, covering more than 160 countries and territories serving about 400 airlines, while gross sales processed amounted to USD 191 billion. NOTE: Earlier the head office was in sharjah but they have recently shifted it to OMAN. Benefits of a BSP Simplification: Agents issue one sales report and remit one amount to a central point. * Airlines receive one settlement covering all agents. * Simplifies and reduces work through the use of electronic ticketing on behalf of all BSP Airlines. * Agents’ sales are reported electronically.

Savings: * Less resource required for billing and collection. * Electronic distribution of billing reports, and generation of debit/credit memos (ADMs/ACMs) via BSPlink. Enhanced Control: * Increased financial control thanks to centralization and grouping.

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* Consolidated document flow, permitting accelerated quality controls. Overall process monitoring by a neutral body. Participation in a BSP AIRLINES and AGENTS both can participate in a BSP. It is open to all airlines (IATA members and non-members) serving the country or area concerned. Agents have to be accredited by IATA in order to use the BSP sustem IATA Accredited Agents: All IATA Accredited Agents in the BSP country of operation are automatically eligible for participation in a BSP.

When a new BSP commences operations in a country, all Agents are notified by IATA and invited to participate. General Sales Agents (GSAs) and Airport Handling Agents (AHA): GSAs and AHAs ay participate in a BSP (in the same way as Accredited Agents), on nomination by the airline they represent, and subject to the airline entering into a standard agreement IATA Airline Member Benefits * Reliable credit management with a collection rate of 99. 9% * Access to IATA’s Billing and Settlement Plan (BSP), and BSPlink that together provide a single standard interface for invoicing and payment between agents and airlines * Protects the IATA member in case of violation of the Passenger Sales Agency Agreement or fraudulent practices IATA Accredited Travel Agent Benefits. Authorization to sell international and/or domestic tickets on behalf of the airlines * Global travel industry recognition through an “IATA Numeric Code” that provides a unique identifier for the agent. * Provides standard procedures which ensure fair and uniform standards in all dealings with the airlines How a BSP works A BSP is the central point through which data and funds flow between travel agents and airlines.

Instead of every agent having an individual relationship with each airline, all of the information is consolidated through the BSP.Agents make one single payment to the BSP (remittance), covering sales on all BSP Airlines. The BSP makes one consolidated payment to each airline, covering sales made by all agents in the country/region. Agents are provided with a range of electronic ticket numbers to be used for sales on any airline. Working processes for Agents 1. Preparation to sell on behalf of airlines Before an agent can begin selling on behalf of airlines, the following must take place: * A range of electronic ticket numbers are assigned to the Agent. * The Airline assigns ticketing authority to the Agent to allow issue of ETs. Agents need to have access to an IATA-approved ticketing system such as a Global Distribution System (GDS).

2. Reporting by Agents The agent reports all sales and refunds at the end of the reporting period. This is done electronically, through BSPlink.

All transactions are forwarded to a central BSP Data Processing Centre (DPC). RET Files: Daily RET files are sent from the GDS to the Data Processing Center (DPC) AFTER 12 O CLOCK AT NIGHT ITS PROCESS TAKES PLACE . DPC processes this file and stores the information in their system. DPC prepares 3 reports which are the Summary Report, Detailed Report and the H.O. T file and 2 copies each are sent to : * Airlines, * agents, * BSP And these reports aid them in discovering how much they need to pay and how much they have to collect. 3.

Processing by BSP The Data Processing Centre: 1. Captures the tickets and refunds information from data files that have been transmitted by the GDS/ticketing system or other automated system such as BSPlink. 2. Processes all relevant data and produce an “Agents Billing Analysis” for each agent. This analysis is compiled from the information of one or more reporting periods. . Two types of report produced by the DPC which is sent to the BSP Link: 1) Summary Report 2) Detailed Report DPC also sends a H. O.

T file directly to the airlines. Four RET files are combined together to make HOT file which is send to the airline on daily/weekly basis. This is then updated into the Revenue Accounting System. 4. Forwards a statement of sales made by Agents to each BSP Airline.

This statement is compiled from the information of one or more reporting periods. 5. Monitors ET ranges and provide replenishment as necessary. 4. PaymentThe Agent makes just one net remittance covering all its BSP transactions for that period for all BSP Airlines. The BSP preferred method of payment is by direct debit.

If the money is in shortage and the airline hasn’t received it ,simply go to the BSP link and upload a debit memo that they can and even agents can sell. NOI – notice of irregulatory send to them if they don’t pay the money on time. 5. Follow up by Airlines The accounting department of each airline audits incoming data and addresses debit/credit accounting memoranda (ADM/ACM) to agents as necessary.

It’s a 15 day billing period cycle.