IATA To Refresh Its Settlement Plans

IATA’s Passenger Agency Conference is planning an overhaul of its 45-year-old billing and settlement plans.

The conference, which oversees non-remuneration matters in the relationships between airlines and passenger sales agents and other intermediaries, has adopted resolutions supporting the development of the “New Generation of IATA Settlement Systems,” dubbed NewGen ISS.

“The one-size-fits-all model launched in 1971 no longer fits today’s vastly different operating environment,” Aleks Popovich, senior vice president for financial and distribution services, said.

“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.”

The resolution language adopted by the Passenger Agency Conference introduces “three pillars” of NewGen ISS:  

1. a range of travel agent accreditation models to better fit agent needs;  
2. IATA EasyPay, a voluntary pay-as-you-go e-wallet payment solution for issuance of airline tickets in the BSP, and  
3. Global Default Insurance, an optional financial security alternative to bank guarantees for travel agents. 

Mitigating losses
IATA’s Passenger Agency Conference also agreed to continue development of a 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. 

“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,” Popovich said.

“But we also want to make this system more relevant for the travel agency community by having three tiers of accreditation. So if you are a multi-country travel agency, we will have a value proposition for you. If you want to stay a cash-based travel agent, we will have a value proposition for you,” he said.

“We also want to have a lighter form of accreditation to attract new travel agents.”