Beginning this week, we shall be providing our readers with information, analysis and insights on the New Generation IATA Settlement System ( NewGen ISS) that was formally adopted by IATA during the 2017 Passenger Conference and is set to be fully implemented from this year.
The aim is to inform and educate travel agents so that they can adequately prepare for the coming changes.
So, what is NEWGEN ISS? This is a program developed and launched by IATA to deliver faster, safer and more cost effective and relevant financial settlement services and solutions to airlines and travel agents that rely on the IATA Settlement Systems (ISS).
Billing Settlement plan (BSP) has run the selling, reporting and remitting for IATA accredited agents for nearly 50 years. BSP was launched in 1971, at a time when the total global travel was less than 400 million passengers. As of 2017 more than 4 billion air passengers fly each year and over $200 billion transacted through the BSP.
Why NewGenISS? According to IATA, NewGen ISS is the next chapter for BSP with the aim of empowering travel agents and airlines to tackle the current challenges and prepare for the future.
The New Generation of IATA Settlement Systems (NewGen ISS) purposes to transform the current ISS business model which facilitates the distribution and settlement of funds between travel agents and airlines. You will find that in every single part of the world, IATA is losing its agents. Therefore, IATA is moving from the concept - one size fits all, i.e. something is done in India, it should be all over the world. They want to move away from that approach and are offering new accreditation models, they are targeting risk management and they are asking agents and industry players to get used to new ways of doing things.
What is the difference between today and tomorrow? First, NewGen ISS is a strategic programme, and it aims at transforming IATA’s settlement systems and renewing the passenger agency programme.
NewGen ISS has different parts; primarily, one size fits all – what the current IATA is all about. The new IATA would be an a la carte sort of plan. Secondly, low risk management criteria, currently because the risk is very high on airlines and they are now connecting remittance to risk profiles. The existing situation is ‘pay later’, New Gen ISS says ‘pays faster’.
There are three levels in the NewGen ISS; Accreditation no cash, accreditation with cash and multicountry accreditation. Cash in this case means credit.
IATA is coming up with major areas;
1). Agency accreditation model, whose main aim is to increase the number of IATA agents.
2). Credit management
3). IATA Easypay
4). Global default insurance.
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