ARC Group to Provide List Of Clearer Debit Memo Reasons
by Michele McDonald /The Airlines Reporting Corp.’s Debit Memo Working Group Steering Committee (DMWG) plans to standardize the categories under which debit memos are issued, in order to make it easier to understand why a debit memo was generated.
Airlines use a diverse range of terms to describe the reasons, which makes an accurate analysis of why debit memos are issued challenging for recipients.
In 2014, nearly 500,000 debit memos worth $138 million were issued. Half were related to fares, taxes or commissions.
Because these general categories do not describe a particular issue, it is nearly impossible to identify where precise action can be taken to reduce or eliminate specific debit memos.
A two-tier solution
The DMWG will work this year to create two-tier reason categories to remedy this issue, with the ultimate goal of reducing the number of debit memos.
Shannon Keever, debit memo reconciliation manager at Altour, said standardized reasons will speed up the memo resolution process because less time will be spent analyzing and requesting clarification for specific disputed memos.
In addition, she said, knowing why a debit memo was issued will help determine where to focus agent training.
For example, the DMWG believes the category labeled “Incorrect commission” is too broad a term.
Some proposed solutions to narrow the reason are “Commission on original ticket,” “Commission on exchange ticket” and “Commissionable-incorrect calculation.”
New categories, new clarity
Sub-categories suggested for commission-related reasons include: tour code/ticket designator; routing; class of service, and interline. The list of these specific terms will be expanded throughout the debit memo process as the year progresses.
The DMWG is comprised of representatives from stakeholders and other interested organizations from across the industry.
They include the 10 airlines that issue the majority of debit memos; travel agencies, ranging from sole proprietorships to mega-size; IATA; GDS companies; ATPCO, and ASTA.