IATA’s Billing and Settlement Plan (BSP) is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA-accredited passenger sales agents, as well as to improve financial control and cash flow for its approximately 400 participating airlines.
It is a worldwide system that operates in some 181 countries and territories with participation from some 38,000 travel agent head offices. In 2015, IATA’s BSP processed $230.3bn.
Aleks Popovich, IATA senior vice president (Financial and Distribution Services) said, “IATA Settlement Systems are the financial back office of the air transport industry. Since its introduction 45 years ago, the Billing and Settlement Plan (BSP) has successfully facilitated the distribution and settlement of funds between travel agents and airlines, which totalled more than $230bn in 2015.
"But the one-size-fits-all model launched in 1971 no longer fits today’s vastly different operating environment. NewGen ISS will ensure that IATA’s Passenger Agency Program continues to deliver enormous value to airlines and travel agents by providing more flexibility and options with greater financial security.”
IATA Passenger Agency Conference (PAConf) in Singapore adopted Resolutions supporting the development of the New Generation of IATA Settlement Systems (NewGen ISS).
The resolution text adopted by the PAConf will enable the introduction of three pillars of NewGen ISS:
A range of travel agent accreditation models that can better fit travel agent needs, IATA EasyPay – a voluntary pay-as-you-go e-wallet payment solution for issuance of airline tickets in the BSP, and Global Default Insurance – an optional financial security alternative to bank guarantees for travel agents.
IATA said the PAConf also agreed to continue development of the fourth pillar of NewGen ISS – a new risk management framework to enable safer selling and mitigate default losses in the BSP. A joint travel agent and airline working group was established to define a proposal by early next year. The related Resolution text will then proceed to the PAConf for voting in 2017.
“We are taking a working-together approach to this important pillar of NewGen ISS in order to respond to travel agent requirements for flexibility while creating a structure that enables safer selling and greater protection of ticket funds,” said Popovich.
It is a worldwide system that operates in some 181 countries and territories with participation from some 38,000 travel agent head offices. In 2015, IATA’s BSP processed $230.3bn.
Aleks Popovich, IATA senior vice president (Financial and Distribution Services) said, “IATA Settlement Systems are the financial back office of the air transport industry. Since its introduction 45 years ago, the Billing and Settlement Plan (BSP) has successfully facilitated the distribution and settlement of funds between travel agents and airlines, which totalled more than $230bn in 2015.
"But the one-size-fits-all model launched in 1971 no longer fits today’s vastly different operating environment. NewGen ISS will ensure that IATA’s Passenger Agency Program continues to deliver enormous value to airlines and travel agents by providing more flexibility and options with greater financial security.”
IATA Passenger Agency Conference (PAConf) in Singapore adopted Resolutions supporting the development of the New Generation of IATA Settlement Systems (NewGen ISS).
The resolution text adopted by the PAConf will enable the introduction of three pillars of NewGen ISS:
A range of travel agent accreditation models that can better fit travel agent needs, IATA EasyPay – a voluntary pay-as-you-go e-wallet payment solution for issuance of airline tickets in the BSP, and Global Default Insurance – an optional financial security alternative to bank guarantees for travel agents.
IATA said the PAConf also agreed to continue development of the fourth pillar of NewGen ISS – a new risk management framework to enable safer selling and mitigate default losses in the BSP. A joint travel agent and airline working group was established to define a proposal by early next year. The related Resolution text will then proceed to the PAConf for voting in 2017.
“We are taking a working-together approach to this important pillar of NewGen ISS in order to respond to travel agent requirements for flexibility while creating a structure that enables safer selling and greater protection of ticket funds,” said Popovich.