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Big change coming to agent/airline settlements


NewGen ISS to go live in Australia on 19 November

The International Air Transport Association (IATA) announced that the New Generation of IATA Settlement Systems (NewGen ISS) will be implemented in Australia on 19 November 2018.

 

Australia will be the 6th country in Asia-Pacific to implement NewGen ISS, after Singapore (April 2018), Philippines (August), South Korea (September), India (October) and Cambodia (November) The global rollout is expected to be completed in all BSP markets by Q1 2020.

 

 

NewGen ISS 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.

 

NewGen ISS consists of four pillars:

 

  • 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. This allows travel agents a means to lower their financial security amounts held with IATA, and to issue transactions which are not included in their BSP Remittance Holding Capacity (below)
  • Remittance Holding Capacity (RHC), a risk management framework to enable safer selling and mitigate losses resulting from travel agency defaults. The RHC is calculated based on the average of the three highest reporting periods of the previous 12 months plus 100%. Furthermore, travel agents will be able to monitor and manage their RHC in order to ensure that they continue selling in a safe and secure manner.
  • 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.

 

Ahead of the launch in Australia, a series of activities are being planned to inform travel agents about NewGen ISS. These include webinars (on 27 September and 4 October) as well as seminars in Sydney (16 October), Melbourne (17 October) and Brisbane (18 October). More details on the webinars and seminars will be made available via BSPLink, email notifications, or by logging a query at www.iata.org/cs.

 

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