Class Notes and Assignment on Billing and Settlement Plan
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Module
TMGT 2201B
Institution
University Of Technology Mauritius
To all University Tourism Students, this PDF includes notes which can be used as an assignment also. It covers all the useful information in relation to Billing and Settlement Plan (BSP) by carefully analysing its operational mechanism and its various advantages and disadvantages to airlines as wel...
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THE IMPORTANCE OF THE
BILLING AND SETTLEMENT
PLAN BY CAREFULLY
ANALYSING ITS VARIOUS
ADVANTAGES AND
DISADVANTAGES TO BOTH
AIRLINES AND TRAVEL
AGENCIES
TABLE OF CONTENT
Introduction
Definition of Billing and Settlement Plan
IATA Settlement System
Standard Traffic Document
Difference between Standard Traffic Document and Airline Traffic Document
THE IMPORTANCE OF THE BILLING AND SETTLEMENT PLAN BY CAREFULLY ANALYSING ITS VARIOUS
1
ADVANTAGES AND DISADVANTAGES TO BOTH AIRLINES AND TRAVEL AGENCIES
, Aims of Billing and Settlement Plan
Billing and Settlement Plan Agents and Airline Relations
Advantages of Billing and Settlement Plan to Travel Agents
Disadvantages of Billing and Settlement Plan to Travel Agents
Advantages of Billing and Settlement Plan to Airlines
BSPLink
Disadvantages of Billing and Settlement Plan to Airlines
Billing and Settlement Plan Operation
The Stages of Billing and Settlement Plan
Conclusion
References
LIST OF FIGURES
Figure 1: Represents travel agents without Billing and Settlement Plan
Figure 2: Represents travel agents with Billing and Settlement Plan
Figure 3: Represents flowchart of Billing and Settlement Plan operation
LIST OF ACRONYMS
ACM Agency Credit Memo
ADM Agency Debit Memo
AST Agency Sales Transmittal
ATD Airline Traffic Document
BSP Billing and Settlement Plan
CIP Carrier Identification Plate
CRS Computer Reservation System
DPC Data Processing Centre
GDS Global Distribution System
IATA International Air Transport Association
IDFS IATA Distribution and Financial Services
ISS IATA Settlement System
PAConf Passenger Agency Conference
SAF Standard Administrative Forms
STD Standard Traffic Document
THE IMPORTANCE OF THE BILLING AND SETTLEMENT PLAN BY CAREFULLY ANALYSING ITS VARIOUS
2
ADVANTAGES AND DISADVANTAGES TO BOTH AIRLINES AND TRAVEL AGENCIES
, TSP Ticket Service Provider
INTRODUCTION
BSP was previously known as the Bank Settlement Plan because of the introduction of a
chosen clearing bank for each country. Nowadays, it’s called the Billing Settlement Plan as it
continues to stimulate a consistent and well tested system that simplifies the settlement of
tickets to the airlines via the clearing bank. The first BSP created by IATA Member Airlines
was inaugurated in 1971 in Japan. Today, BSP is a system involving over 140 countries
globally.
DEFINITION OF BILLING AND SETTLEMENT PLAN
BSP is a technique of offering and issuing STDs and of accounting and reconciling accounts
between airlines and travel agents. The main aspect of the BSP is the use of the neutral STD.
Once a BSP is applied, then participating airlines may no longer have to issue stocks of their
own tickets to agents. Instead, agents issue STDs acquired and distributed by ISS
Management.
ISS Management
ISS management is represented in each area of BSP operation by an ISS manager who
assures that suitable assistance, guidance and data at the local level are accessible to all
BSP parties. He also informs the agency administrator of irregularities and defaults. It is
the effective area of IDFS in Geneva. Its main functions are to develop and manage
BSPs, to provide general BSP administration and to guide airlines, agents, the clearing
bank and DPC on procedures and assuring the application of industry policy and latest
methods. The responsibility of the clearing bank is to timely receipt and control of
agent’s remittances, reporting of remittance discrepancies to BSP management and to the
DPC for recalculation of BSP Airlines share and lastly the timely payment to BSP
airlines of remittances obtained from agents.
STD
STD is the collective name set for neutral electronic tickets, VMPDs and agents refund
vouchers. All STDs are to be delivered in strict numerical order to assure continuous
security of the documents and to prevent pointless inquiries by ISS of “missing” or
actually unreported documents. BSP STDs accept no airline identification until after
validation. In addition to this, validation is an important aspect because with the
introduction of electronic ticketing and its implementation industry-wide, manual tickets
and manual validation equipment has been phased out. In the electronic ticketing
environment, all ticket validation will be inserted as information elements in the
THE IMPORTANCE OF THE BILLING AND SETTLEMENT PLAN BY CAREFULLY ANALYSING ITS VARIOUS
3
ADVANTAGES AND DISADVANTAGES TO BOTH AIRLINES AND TRAVEL AGENCIES
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