Transparency in Payments  10th Apr 2018

Implementation of TIP is aligned with and is occurring in conjunction with IATA's NewGen ISS program, which is the modernization of the IATA Billing and Settlement Plan (BSP).

The BSP was created in 1971 to facilitate the global distribution and settlement of funds between travel agents and airlines. NewGen ISS aims 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 BSP.

Transparency in Payments (TIP) is an industry initiative focused on providing airlines with increased transparency and control in the collection of their sales through the travel agency channel. At the same time, it will enable travel agents to take advantage of new forms of payment for the remittance of customer funds.

In November 2017, the Passenger Agency Conference (PAConf) approved the Resolution text incorporating provisions related to Transparency in Payments.

The TIP initiative will enable each airline to clearly define its payment policy based on transparent product information, and travel agents will be able to use new transfer methods.

Benefits for Airlines

  • A resolution framework to ensure transparency and control for each individual airline
  • Tools to manage airline consent policy
  • Tools and reports to monitor compliance with each airline's consent policy

 

 Benefits for Agents

  • A resolution framework to provide access to alternative transfer methods, based on airline individual consent
  • Tools to manage the enrolment of an agent's own card, and consult the airline consent list

No form of payment is barred by TIP. However, agents will have to use those forms to which an airline has previously given consent. Importantly, TIP allows agents to use their own credit cards if an airline approves, which previously was not supported by Resolution 890. 

 

TIP's implementation will in March 2018 with a limited geographical and functional scope, and will be completed worldwide by end of 2019.

Source: http://www.iata.org/whatwedo/airline-distribution/Pages/transparency-payments.aspx

 

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