New air transport settlement system goes live in NorwayStaff Writer | March 9, 2018
The International Air Transport Association (IATA) announced that Norway became the first market to implement the New Generation of IATA Settlement Systems (NewGen ISS).
Air traffic The BSP processed $236.3 billion
It represents the most extensive and ambitious modernization of the IATA Billing and Settlement Plan (BSP) since it was created in 1971 to facilitate the global distribution and settlement of passenger funds between travel agents and airlines.
In 2017, the BSP processed $236.3 billion in airline funds with virtually 100% on-time settlement.
"As the first market to implement NewGen ISS, travel agents and airlines in Norway are in the vanguard of a vital transformation to modernize the industry's settlement functions while ensuring the viability of the travel agent shopping channel used by millions of passengers every day.
"While Norway is a relatively small travel market, it is technologically advanced and has a history of embracing new solutions, making it the ideal environment to go live with NewGen ISS," said Aleks Popovich, IATA's Senior Vice President, Financial and Distribution Services.
IATA EasyPay - a new voluntary pay-as-you-go e-wallet solution for issuance of airline tickets in the BSP with a low cost per transaction. As a secure form of payment, IATA EasyPay transactions are not part of a travel agent's cash sales at risk.
Remittance Holding Capacity (RHC), a risk management framework to enable safer selling and mitigate losses resulting from travel agency defaults. For the majority of travel agents, RHC is calculated based on the average of the three highest reporting periods of the previous 12 months plus 100%.
Three levels of travel agent accreditation, offering agents greater flexibility. Travel agents will be able to choose among the model most applicable to their business, as well as to convert across levels as their business evolves.
Global Default Insurance – an optional financial security alternative for travel agents that presents a cost effective and flexible alternative to bank guarantees and other types of security.
Norway will also be the first market to roll out another vital innovation when the Transparency in Payments (TIP) initiative is launched there in April. TIP is an industry initiative focused on providing airlines with increased transparency and control in the collection of their sales through the travel agency channel.
At the same time, it will enable travel agents to take advantage of new forms of payment for the remittance of customer funds. No form of remittance is barred by TIP, but travel agents can only use those forms to which an airline has previously given consent.
Importantly, if an airline consents, TIP allows travel agents to use their own credit cards - previously not supported in the BSP. ■