ADM Reduction & Management Project

Transcription

1 ADM Reduction & Management Project

2 INTRODUCTION 1 ADM Reduction Project About the ADM Working Group Agent Debit Memo (ADM) is the legitimate accounting tool used by airlines to collect adjustments for STDs issued by Agents. (Reso 850m). Over time, Airlines and Agent community have expressed their respective concerns to IATA about the administrative costs for managing ADMs. With the purpose of supporting the industry in this area, in 2013, the PSG ADM Working Group mandated IATA to develop BSPlink to align with changes in resolution 850m. Despite the efforts of the developments in ISS systems, volume of ADM and Disputes keep on increasing and thus the Administrative cost for the industry to manage Debit Memos. This project consists of a set of actions to categorize the issuances of ADM by formalizing the reporting of Reasons for Memo issuance and reduce the number of issuances by analyzing the root causes, through improved controls and training. The goal is to reduce or eliminate ADMs by fixing problems in the industry supply chain through the close collaboration of the stakeholders. ADMs are an enormous source of friction between business partners, therefore the ADMWG involves all industry actors (Airlines, Agents and their Associations, GDSs, ATPCO, ARC & IATA SMEs) working together in a data-focused and blame-free environment, where constructive solution-oriented discussions take place to bring in reduction of the workload required for capturing revenue leakages, thereby reducing ADM volumes and settlement timeframes, as well as improving business relationships amongst the industry. The aim of the Working Group is to improve the efficiencies in our current distribution chain, which have been identified through ADM data. We work on identifying, developing and implementing solutions that would result in a reduced need for post-billing revenue recovery through ADMs. Our goal is for the industry to work together more effectively and efficiently.

3 HIGHLIGHTS 2

4 ADMWG PROCESS 3 During the course of 2015 and 2016, IATA ADM Management & Reduction project team has facilitated three workshops where the Working Group members have first gone through ADM data. ADM Data

5 ADMWG PROCESS 4 During the course of 2015 and 2016, IATA ADM Management & Reduction project team has facilitated three workshops where the Working Group members have first gone through ADM data, identified and defined main reasons for ADMs. ADM Data Main reasons for ADMs

6 ADMWG PROCESS 7 During the course of 2015 and 2016, IATA ADM Management & Reduction project team has facilitated three workshops where the Working Group members have first gone through ADM data, identified and defined main reasons for ADMs, and conducted a thorough Root Cause Analysis. Root Cause Analysis ADM Data Main reasons for ADMs

7 ADMWG PROCESS 8 During the course of 2015 and 2016, IATA ADM Management & Reduction project team has facilitated three workshops where the Working Group members have first gone through ADM data, identified and defined main reasons for ADMs, and conducted a thorough Root Cause Analysis, followed by the identification of possible solutions and. Root Cause Analysis ADM Data Main reasons for ADMs Possible Solutions

8 ADMWG PROCESS 9 During the course of 2015 and 2016, IATA ADM Management & Reduction project team has facilitated three workshops where the Working Group members have first gone through ADM data, identified and defined main reasons for ADMs, and conducted a thorough Root Cause Analysis, followed by the identification of possible solutions and a final roadmap that incorporates all solutions which implementation will result in a reduced number of ADMs. Root Cause Analysis ADM Data ADM Reduction Main reasons for ADMs Possible Solutions

9 PARTICIPATION 10 HOW COULD TRAVEL AGENTS BENEFIT? Have a global view on ADM issues, know what are the drivers and reason behind ADM issues, see beyond the local market The opportunity to engage direct discussion between all industry actors and address common issues (Airlines, GDSs, ATPCO, IATA) To be part of global solutions where Agents direct input are considered and participate in piloting solutions

10 PARTICIPATION 11 HOW COULD AIRLINES BENEFIT? Reduce industry costs associated to ADMs Improve settlement of Airlines sales Build trustworthy Agent-Airline relationship Additionally, since it is expected that through NDC, Airlines would take the responsibility of Fare Calculation, Commissions and Taxes; these related ADMs would be significantly reduced if not eliminated. This project would be a good learning opportunity for the airlines to getting ready for efficiently manage fares, commission and taxes under NDC Agents

11 PARTICIPATION 12 HOW CAN I BE PART OF THE ADM WORKING GROUP? We need your participation! We welcome all Airlines, Agents, Travel Agent Associations and GDSs to contribute on the ADM reduction project by understanding the inefficiencies in our distribution chain, using ADMs as a kind of measure as well as a magnifying glass for us to identify where the major pain points are in order for the ADM Working Group to be able to address them and find consistent solutions. Our group has a wide scope of participants, and we maintain the balance of the group by encouraging constructive discussions that are free of emotions. We let data drive the discussions and everyone reflects on their own processes as much as they discuss about others. We do not get into commercial discussions, but to share how each other s processes works or does not work- in order to find where the issue is and find a solution to it. If you would like to participate in this initiative, please feel free to join our extranet, or contact us through ADMProject@iata.org. Click here to join our extranet

12 PARTICIPATION 13 HOW TO HELP US TO UNDERSTAND YOUR NEEDS? We need your participation! We are conducting a global Market Research through a survey campaign in order to understand the situation of airlines and travel agents with regards to ADMs as well as to provide concrete solutions for specific needs. The purpose is to obtain market-based data that proves what is really at stake with ADMs and understand the best way for IATA to promote best practices efficiently. Your involvement in this study is fundamental for IATA to have a precise comprehension of the market. Please respond the survey and help us spread the word to EVERYONE in the industry possible! Airlines- please let your fellow agents know that you are in a working group, which aim is to reduce ADMs and a better relationship with them, AND ask them to help us by completing the survey! Click here to access the survey for airlines Agents- please let your Head Office- Rev. Accounting people know about this study and help us by completing the survey! Click here to access the survey for agents Travel Agent s Associationplease help us promote this initiative to your members by placing the survey link on your newsletters and mention that you are part of the ADMWG, we welcome any comments from your Agents! Click here to access the survey for agents

13 Our member s testimonies We hope to reduce the number of ADMs and settle dispute progresses down to an acceptable degree. Also, give more details to ADM reason for a better understanding of the agents. -Cuma Soysal, Controller Sales & Data Control Department- Turkish Airlines ADMs represent a major irritation element for travel agents, as an Association representing the agents we see benefit from this initiative as the ADMs will be reduced to a more acceptable level. We hope that by reducing ADMs, they will become an exception to the rules, not the rules itself. -Lars Thykier, Managing Director- Association of Danish Travel Agents and Tour Operators The ADMWG has made significant progress in Partnering with ARC helped pave the way to quickly mapping ADM reason codes and identifying common as well as uncommon ADM issues given the fact that IATA encompasses many countries with unique requirements. -Tim W. DeLaney, Delta Finance Division Manager- Revenue Recovery ADM reduction will improve the whole industry. First, it will reduce the pain points such as the workload generated, the revenue leakage on airline and/or distribution side and the damaged brand image perceived by stakeholders. Secondly, it will solve root causes of misalignment between carriers and agents. - Guillaume Donnier, Product Manager, Pricing-Reissue-Refund- Amadeus

14 Thank You!