Passenger Rejection Reduction Project Kirk Pereira · PDF fileGlobal RM Count 2015 vs 2016 2015 average monthly rejection memo count was 1,089,843 2016 average monthly rejection memo

Passenger Rejection Reduction Project

Kirk Pereira

25th April 2017

2 ACH- 2017 – PAX RM Reduction

SIS Rejection Memo

3

How many of you remember this?

ACH- 2017 – PAX RM Reduction

4

• Global system to track the exact number of prime billings, rejections and correspondences.

Before

With


5

Why reduce rejections?

Improve cash flow

Increase efficiency

Decrease overall cost at

industry level


Global RM Count 2015 vs 2016

2015 average monthly

rejection memo count

was 1,089,843


rejection memo count is

1,045,422

4% decrease

1,112,000

1,038,224

1,100,527

1,193,323

1,036,000 1,042,170

1,210,384

994,581

1,093,4861,132,346

1,043,3641,081,706

986,456

1,045,7391,012,352

980,079

919,128

1,069,780

1,021,107

1,037,936

1,082,648 1,071,361

1,232,417

1,086,060

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015 2016

ACH- 2017 – PAX RM Reduction6

ACH RM Count 2015 vs 2016


rejection memo count

was 59,602


rejection memo count is

39,605

34% decrease

51,639

43,448

54,541

65,153

73,803

58,306

79,303

59,876

72,048

49,943

40,266

66,897

42,663

45,515

39,957 39,412 36,391

48,267

37,059

33,994

29,435 33,939

54,483

34,142

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015 2016


2016 Rejections Split by Stage

64%

28%

8%

Stage 1 Stage 2 Stage 3

Global ACH69%

22%

9%


ACH

Split by Source Code

64%

28%

8%

SRCD 456%

Others 8% (SRCD 44, 91)

SRCD 526%

Others 2%(SRCD 45, 55, 92)

SRCD 67%

Others 1%(SRCD 46, 56,

93)


ACH RM Count - Split by Quarter

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Q1(15) Q2(15) Q3(15) Q4(15) Q1(16) Q2(16) Q3(16) Q4(16) Q1(17)

120,010

128,580

155,700

107,264

78,445 78,152

67,747

81,239

66,136

24,269

61,529

47,829 36,760 40,940

36,488

25,441 31,925

27,095

5,349 7,153 7,698 13,082 8,750 9,430

7,300 9,400 8,252

STG1 STG2 STG3


Our Approach

Analyze & Report

Contact & Give Recommendations


Measuring progress

𝑺𝒖𝒎 𝒐𝒇 𝑺𝒕𝒂𝒈𝒆 𝟏 𝑹𝑴𝒔 𝒐𝒇 𝑷𝒂𝒔𝒕 𝟏𝟐𝒎𝒐𝒏𝒕𝒉𝒔

𝑺𝒖𝒎 𝒐𝒇 𝑷𝒓𝒊𝒎𝒆 𝑩𝒊𝒍𝒍𝒊𝒏𝒈𝒔 𝒐𝒇 𝑷𝒂𝒔𝒕 𝟏𝟐𝒎𝒐𝒏𝒕𝒉𝒔× 𝟏𝟎𝟎%

8.02%7.71% 7.65%

7.34%7.03%

6.68% 6.45%

5.76% 5.53%5.02% 4.92% 5.07%

4.56% 4.44% 4.24% 4.14%

0.00%

5.00%

10.00%

Ratio

ACH


8.02%7.71% 7.65%

7.34%7.03%

6.68% 6.45%

5.76% 5.53%5.02% 4.92% 5.07%

4.56% 4.44% 4.24% 4.14%

0.00%

5.00%

10.00%

Ratio

ACH

Measuring progress - example

𝑺𝒖𝒎 𝒐𝒇 𝑺𝒕𝒂𝒈𝒆 𝟏 𝑹𝑴𝒔 𝒐𝒇 𝑨𝒑𝒓 𝟐𝟎𝟏𝟔−𝑴𝒂𝒓 𝟐𝟎𝟏𝟕

𝑺𝒖𝒎 𝒐𝒇 𝑷𝒓𝒊𝒎𝒆 𝑩𝒊𝒍𝒍𝒊𝒏𝒈𝒔 𝒐𝒇 𝑨𝒑𝒓 𝟐𝟎𝟏𝟔−𝑴𝒂𝒓 𝟐𝟎𝟏𝟕× 𝟏𝟎𝟎% =

𝟐𝟗𝟑,𝟐𝟕𝟒

𝟕,𝟎𝟕𝟗,𝟓𝟖𝟔× 𝟏𝟎𝟎% = 𝟒. 𝟏𝟒%


14

Trend of Rejections

8.02%7.71% 7.65%

7.34%7.03%

6.68%

6.45%

5.76%5.53%

5.02% 4.92% 5.07%

4.56% 4.44% 4.24% 4.14%

7.21% 7.10% 7.04% 6.92% 6.77% 6.67%

6.64% 6.42% 6.37% 6.31% 6.24% 6.27% 6.21% 6.18% 6.16% 6.14%

0.00%

5.00%

10.00%

Ratio ACH ALL SMIs


ACH 2016 rejection reason codes

15

Reason

Code*

Reason

Description

Stage 1

Count

Stage 1

%

Stage 2

Count

Stage 2

%

Stage 3

Count

Stage 3

%Total

1B Fare Reclaim 178,603 59% 104,848 78% 24,597 71% 308,048

1G Tax Reclaim 80,555 26% 13,902 10% 5,317 15% 99,774

1A Fare/Tax/ISC 19,892 7% 4,429 3% 1,354 4% 25,675

1C ISC Reclaim 11,136 4% 8,226 6% 2,102 6% 21,464

2BDuplicate

Billing5,264 2% 326 0% 152 0% 5,742

Top 5 rejection reason codes sorted as per stage 1


Action at our end


Monitor and inform


Monitor the monthly trend of rejections

Report on the monthly / quarterly trend

SIS SG

IBSOPS WG

Contact airlines with high volumes

Provide personalized reports that contain

Trend of rejections against prime coupons billed

Trend of rejections against prime coupons received

Top 5 airlines that should be looked into

Top reason codes used

Recommendations and observations

Follow-up with a call to discuss the report


Improve data quality validations in SIS

19

Mandatory reason remarks for all RM stages

Mandatory reason remarks for 5Z billing memos


SIS RM analysis reports


SIS RM analysis reports




Similar Report for Payables


Recommended Action

What can you start doing?


Monitor Incoming Rejection Trends

Is there a higher number of rejections being received

Is there a problem with your prime billings

If yes, make changes immediately so that your next

cycle of billings are not affected

If there is an interpretation issue - talk to your

interline partner

DO NOT WAIT FOR IT TO GO TO CORRESPONDENCE


Monitor trends of Raised Rejections

Is there a higher number of rejections than usual

If yes, is it against any particular airline or scenario

Check a sample and identify the cause

If there is an issue at your partners end - contact

them


Monitor Key Changes

New SPA agreements

New tax codes / change in rules

Change / Upgrade of your Revenue Accounting /

Proration / Tax Engines


Important

Its not a one-way street

You have to work with your interline partners to make this successful

ONE WAY


In Conclusion

What

Reduce

Unnecessary

Rejections

Why

Increase efficiency

Improve cash flow

Decrease cost

How

Bill correctly

Monitor your

incoming

rejections trend

Discuss with your

billing partners


31

Questions?



Meet us during the next few days

Or contact us at

[email protected]

Documents

Passenger Rejection Reduction Project Kirk Pereira · PDF fileGlobal RM Count 2015 vs 2016 2015 average monthly rejection memo count was 1,089,843 2016 average monthly rejection memo