The Future Of Airline Distribution - IATA
The Future Of Airline Distribution - IATA
The Future Of Airline Distribution - IATA
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<strong>The</strong> <strong>Future</strong> of <strong>Airline</strong> <strong>Distribution</strong> - A Look Ahead To 2017<br />
• Business-based settlement terms. By 2017, airlines will have developed a flexible<br />
approach to agency settlement and payment. <strong>Airline</strong>s will “score” travel agencies to<br />
determine settlement terms, based on factors such as an agency’s location, size, credit,<br />
reservations mix, and customer mix. As a result, a local, single-location leisure agency<br />
can expect to have more stringent payment terms than a regional branch of a global<br />
TMC. <strong>Airline</strong>s will also aim to manage their risk exposure by establishing payment terms<br />
with agencies based in part on an agency’s financial volume and the types of reservations<br />
it books (low-yield domestic versus high-yield long-haul, for example).<br />
• <strong>The</strong> existence of “alternate” settlement solution providers. Organizations like Hahn<br />
Air and eNett allow travel agencies and airlines to settle their accounts outside the<br />
traditional framework of a BSP. Use of these “BSP alternatives” will increase, with new<br />
entrants possibly entering the space. Contributing to these providers’ success is their<br />
ability to integrate their work processes into agencies existing workflows, which<br />
contributes to agency efficiency, and travellers’ ongoing shift to electronic payments.<br />
© 2012 Atmosphere Research Group, LLC. All rights reserved. 31
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