Travel Partners (TA) Educational Material 2020

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Outlines • Industry Abbreviations

• Types of Agents

• IATA Agents classifications

• Prerequisites for working with EGYPTAIR

• BSP Cycle

• Travel Agents Ticketing Authority

• Agents status access

• Tracking the agent performance

• Sales Policy (Backend Incentive & Upfront Commission)

Industry Abbreviations

IATA (International Air Transport Association)To organize work between airlines and travel agents through BSP.

BSP (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 to improve financial control and cash flow for Airlines.

LCAG (Local Customer Advisory Group )Airlines forum established under the IATA BSP Umbrella for interfacing between them. They deal with aspects of BSP operations that affect Members/Airlines operating in the market.

APJC (Agency Programme Joint Council)APJC comprises of five elected airlines and five elected agency representatives. Airlines are elected from agent through LCAG and Agents are elected from the agent community.

LFC (Local Financial Criteria)Local financial criteria recommended by APJC and approved by passenger agency conference (PAConf).

RHC (Remittance Holding Capacity) RHC is designed to promote safer selling and mitigate Airlines’ risk exposure in the BSP.

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Airline TicketIs a document or electronic record, issued by airline or a travel agency, that confirms that an individual is entitled to a seat on a flight on an aircraft.

ADM (Agent Debit Memos)/ACM (Agent Credit Memos)ADM/ACMs are adjustments issued by the airline for any inappropriate reported documents.

MIR (Management Information Report)This report identifies high risk agents in each BSP country with significant deviation in their sales amount, together with their related financial security coverage as provided to IATA where applicable.

Default Agent Agent that fails to fulfil with the BSP regular settlement plans in due time.

Terminated AgentAgent is transferred to a terminated status after failing to adjust his dues towards BSP within 45 days after being declared as a default agent. Accordingly, the agent is totally removed from the IATA and cannot participate anymore.

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Flown Coupon flown means completely used/flown and closed coupon.

PCC (Pseudo City Code)Office ID is an alpha numeric identifier for a Corporate User of a computer reservation system (CRS) or global distribution system (GDS).

OTA (Online Travel Agent)OTAs are online travel agents that sell their tickets through portals.

Market ShareAirlines' market share is its portion of total sales in relation to the market or industry in which it operates.

RevenueIt is the income and the value of all sales and services which allows the airlines to improve the yield.

Types of Agents :

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IATA Agent

EGYPTAIR grants ticketing authority for only IATA

accredited agencies after fulfilling all requirements.

ex: (tax card/letter of guarantee

/commercial registration).

Non IATA Agent

Non IATA agent has the ability to display or Access EGYPTAIR Inventory

Go Lite Go GlobalGo Standard

IATA Agents classifications

Go Standard

• Accreditation is for Agents accredited in one market with access to all forms of payment, including a cash facility.

Go Global

• Accreditation offers a streamlined process for large, international travel agencies, allowing them to maintain one accreditation for all BSPs they participate in, and to comply with a single global set of financial requirements.

Go Lite

• Accreditation offers more flexible process for current accredited agents and for non-accredited agents It offers a new route for accreditation. Travel Agents under this accreditation model are able to transact in the BSP using customer cards or IATA EasyPay, a pay-as-you-go e-wallet solution. However, they will not have access in the BSP Cash facility.

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Prerequisites for working with EGYPTAIR

IATA Agent:

1- IATA Accredited Agent Certificate

2- Commercial Registration

3- Letter of guarantee submitted to the IATA

4- Taxation card in addition to ownership proof

5- Proof of premises address details

NON IATA Agent:

To have the access to the airline inventory only by :

- Submitting a letter of guarantee.

- Or to pay deposit of a certain amount of money for the airline as a guarantee.

- Or an IATA Agent to guarantee the NON IATA Agent and stating responsibility.

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BSP Cycle1. Agents provide EGYPTAIR by

all requirements to get ticketing authority

2. Agents get the ticketing authority by EGYPTAIR

3. Agent start sales through BSP link (cash/credit/Easypay)

4. Every agreed period, Agent receives the invoice to start

the settlement process for BSP

5. The settlement process to BSP followed by distribution

and settlement to each airline

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Travel Agent Ticketing Authority

Step 1 : Go to the Link https://portal.iata.org

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Step 2 - click BSP link icon

Step3 A- click ticketing authority B- then click ticketing authority maintenance.C- then insert IATA no and execute

Agents Status Access:Click on ticketing authority then ticketing authority query

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Result

Tracking the Agent Performance through:

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1.BSP LINK Indicates the Sales amount & Market Share percentage for each agent periodically / monthly.Gross sales per period (Non Comparatives)

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Result

Gross Sales per month (Comparatives)

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Result

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2.Direct Data Solution ( DDS )Indicates the sales of each agent per passengers & routes.

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3.Sirax ( Revenue Management system)Indicates coupons revenue details for each agent.

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Sales Policy (Backend Incentive & Upfront Commission)

Expected Target in $ Backend Incentive Percentage

From 0 to & less than 100,000 1%

100,001 to & less than 300,000 1.5%

300,001 to &less than 600,000 2%

600,001 to & less than 1,000,000 3%

1,000,001 to & less than 2,000,000 4.5%

2,000,001 & More 6%

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B. General Backend incentive

1. Backend Incentive on flown revenueA. Backend incentive for specific agent• Analyze the market revenue for one year.• Study the revenue details (ex: Routes, RBDs...) for the top 10 agents or more in the market.• Establish a business plan to increase revenues and the market share against backend incentive.Example 1.XYZ travel agent is one of the top 10 in the market 2.XYZ travel agent yearly revenue is $100M 3.MS share is $100,000 with a market share of 0.001%4.The target is to increase the market share to be 2% for the first year

• To set general targets accompanied by backend incentives to all agents in the market.

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2.Upfront commission

• Commission to be reflected on each ticket upon issuance by the travel agent (Automated or Manually).

➢ To compete with other airlines.➢ To promote Business or Economy Cabin or both .➢ To promote specific routes or flights.➢ To promote specific form of payment (EX. Easypay).➢ To be used for short or long sales periods .