Fact Sheet - IATA Billing and Settlement Plan
- 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 improve ...
- A worldwide system that operates in some 177 countries and territories
- In 2012 IATA’s BSP processed $251.8 billion
Full Answer
What does BSP stand for in airline industry?
BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines.
What is BSP and ARC?
What are BSP and ARC? BSP or Billing and Settlement Plan is an IATA electronic billing system to run and simplify the interchange of data and funds between travel agencies and airlines. Sounds complicated, but in plain English, BSP is a payment mediator between airlines and travel agents.
What are the advantages of BSP?
The advantages for airlines Simplification of the system of monetary settlements. Hassle-free receipt of money. Obtaining the completed infrastructure of the bank, a unified agent network, which allows you to cover the entire market by attracting agents.
What does ARC stand for in airline industry?
ARC (Airlines Reporting Corporation) gives out these numbers to accredited agencies, which in turn allows those travel agencies to issue airline tickets. But the use of an ARC number extends beyond air tickets—travel agencies will use it to book everything from a hotel to a cruise ship.
How does a BSP operate?
BSP Finance provides Finance Leasing and Commercial loans for its Lending customers and Term Deposits for its investments customers. Lending products are priced on a case by case basis according to the clients credit worthiness. Fees are fair with no hidden costs or surprises.
What is BSP refund?
BSP - Ticket Refund 24hrs. Refund within 24 Hours of Ticket Issuance. Tickets may be refunded within 24 hours only using the following options: Note: Does not apply to PNRs booked as group blocked space. GDS (Automated Refund)
What are the disadvantages of BSP?
Disadvantages of BSP BrushesBSP is very slow if a lot of brushes are used; lots of brushes can hinder performance and often causes geometry errors (missing brush faces, flickering geometry)BSP isn't as intuitive and user friendly as it is in older engines such as Source or Quake.More items...•
How does BSP maintain price stability?
Essentially, the BSP performs a balancing act to maintain stability. It participates in currency trade to prevent the peso from moving up too fast or from dropping too fast, as both could trigger adverse effects on the economy. In moderating the movements of the peso, the BSP does not favor one sector over another.
What is the role of BSP in supply and demand?
economy supporting overall demand for goods & services which, in turn, increases inflationary pressures, the BSP "tightens" the faucet to reduce the money supply. When there is "too little money" in the economy which dampens overall demand for goods and services, the BSP "loosens" the faucet to expand money supply.
What is KPI in airline industry?
Key performance indicators (KPIs) are data metrics used to track performance in aviation safety management systems (SMS). This “performance” was not intended to measure only safety, but also quality and financial performance as well.
What is IATA and ARC?
The International Air Transport Association (IATA) and the Airlines Reporting Corporation (ARC) are two organizations that handle travel transactions among suppliers, consumers and agencies. An IATA number or an ARC number that is issued to a travel agency is a mark of its legitimacy, and gives it supplier recognition.
Who owns ARC?
ARC, which is owned by nine major airlines, also offers its transactional data within various industries, including financial. In 2019, ARC processed more than $97.4 billion worth of transactions for its customers.
What is ARC data?
Powered by Global Air Sales ARC is the trusted provider of settlement services between airlines and travel agencies, accrediting travel agencies, including travel management companies, leisure and online travel agencies, to sell airline tickets.
How do travel agents pay airlines?
A travel agent makes money by charging fees for separate elements of travel. For example, instead of charging a commission for booking tickets with airlines or hotel rooms, travel agents earn money by charging a service fee for each booked part.
What is BSP airline?
BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines.
Who can participate in BSP?
Participation in a BSP is open to all airlines (IATA members and non-members) serving the country or area concerned.
What is the main feature of settlement systems in the market?
So, the main feature of the settlement systems in the market is the use of common standard ticket forms. When the BSP system is operating in the country, the airlines participating in the BSP system stop selling their services through an agent network with their own transportation documents.
What is BSP in insurance?
BSP (Billing and Settlement Plan) is a universal settlement system that replaces individual schemes of relations between agents and carriers. It is designed for the effective interaction of participants through the consolidation of information and financial flows. The advantage of the BSP is the work with the electronic ticket ...
What is the advantage of BSP?
The advantage of the BSP is the work with the electronic ticket of the standard sample. Nowadays, more than a hundred countries are using the BSP system in order to simplify settlements. A distinctive feature is the use of the single ticket by all member countries.
How many parts are there in the third stage of the payment cycle?
During the third stage, the system is introduced and the cycle is launched, during which the payment is made monthly, and each month is divided into 4 parts.
What is the first stage of the airline agent system?
At the first stage, the connection to the Agents system is made . Before carrying out this procedure, the airline must be checked for compliance with financial criteria and requirements, which must be confirmed by relevant documents. All employees must be aware of the company’s entry into the system and they are required to review the regulatory materials.
What is a BSP?
BSP is a conduit, kind of similar to a GDS. As GDSs aggregate inventories across all connected airlines and present a wide variety of them to agents, BSP collects payments from agents and distributes them across airlines.
What are BSP and ARC?
BSP or Billing and Settlement Plan is an IATA electronic billing system to run and simplify the interchange of data and funds between travel agencies and airlines. Sounds complicated, but in plain English, BSP is a payment mediator between airlines and travel agents. BSP is a conduit, kind of similar to a GDS. As GDSs aggregate inventories across all connected airlines and present a wide variety of them to agents, BSP collects payments from agents and distributes them across airlines.
Why does BSP exist?
Why does BSP exist? Well, BSP acts as a single point of remittance and settlement of money. Without it, each travel agent would have to connect individually with every single airline. And of course, BSP is a system that belongs to IATA, while IATA itself is owned by airlines and represents their interests. So, instead of vetting each individual travel agent to allow them to ticket flights, an airline trusts IATA to do that instead.
How often does a clearing bank pay?
The agent pays the clearing bank on a schedule (usually, once a week). And finally, the bank distributes money to the appropriate airlines. These are just basic steps. For instance, if you also receive commissions from airlines, they will be netted from the remittance.
What's new
The BDISG (BSP Data Interchange Specifications Group), PASB (Pay-Account Standards Board) and PSC (Passenger Services Conference) have endorsed various amendments to DISH Revision 23 Standards reflected in this new DISH Update Bulletin Publication 2021/1, declared effective 1 April 2021.
DISH Revision 23 Previous Bulletins
The BDISG (BSP Data Interchange Specifications Group), PASB (Pay-Account Standards Board) and PSC (Passenger Services Conference) have endorsed various amendments to DISH Revision 23 Standards reflected in this new DISH Update Bulletin Publication 2020/1, declared effective 1 August 2020.
DISH Amendment Process
New business requirements and amendments to the DISH are to be forwarded to [email protected] using the DISH Amendment Form (doc). The proposal will be submitted to the next meeting of the BDISG.
Key Benefits of DISH
The DISH defines the reporting standards to enable GDSs to report ticket and miscellaneous documents sales made by BSP travel agents to the IATA Data Processing Centers, to enable the Sales data to be provided to airlines and credit card acquirers, and aids Remittance and Settlement.
What is BSP in travel?
1. Since its launch in 1971, IATA’sBilling and Settlement Plan (BSP) has successfully facilitated the distribution and settlement of funds between travel agents and airlines safely and securely. However, the rules for the BSP were established in an era of paper ticket stock, brick-and-mortar travel agencies, limited payment methods ...
What is the TIP framework for BSP?
The TIP framework for BSP sales is based on four key principles: •The first principle is Transparency: providers of Alternative Transfer Methods will need to enlist with IATA, and provide relevant information about their products by enrolling their products. Travel agents and airlines will have access to this information •The second principle is Individual airline consent: each individual airline will have the possibility to review enrolled products and provide its individual consent to accept or not Alternative Transfer Methods. This consent can be done at different levels of granularity (by country, enrolled product and agent) depending on airline’s commercial and legal policy •The third principle is Transaction validation and monitoring. To ensure that the TIP framework works soundly, there will be two steps of validation. •First, upfront validation whereby the airline consent is checked before the ticket is issued •Then post-ticketing monitoring This means that all BSP transactions will be monitored by IATA after ticket issuance in order to detect potentially non-compliant transactions and reported to each airline •The fourth and last principle is related to Infringement and consequences. In case of infringement to their consent policy, 14
How many agents can participate in the BSP?
6 Agents may choose to participate in the BSP with or without a cash facility. Only those agents participate with a cash facility will be required to undergo a financial assessment. The new risk management framework will operate under the following key principles: The criteria applicable to perform the financial assessment of travel agents will be related to the accreditation model the agent has selected. The historical performance of the agent in the BSP related to its ability to pay and capacity to comply with financial requirements will be factored into the applicable risk management conditions. All agents that choose to participate in the BSP with a cash form of payment (i.e. ability to issue cash sales) will have a monetary limit to cash sales or ‘Remittance Holding Capacity’ (RHC). The applicable RHC will be calculated based on the agent’s risk status, historical BSP cash turnover and remittance frequency.