IATA Billing and Settlement Plan (BSP)

•  IATA’s BSP is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow of participating airlines.
• A worldwide system operates in some 160 countries and territories. 
• Over 80% of worldwide airline revenues are ticketed via IATA travel agencies in the BSP system.
• In 2007 IATA’s BSP processed US$ 220 billion

Year	Agents	Sales US$ bn	Bad debt US$ m	Bad debt % sales
2001	55 770	120	56	.046
2002	58 000	126	45	.035
2003	58 900	131	42	.031
2004	59 500	158	55	.035
2005	60 400	171	62	.036
2006	60 557	187	31	.017
2007	60 600	220	53	.024

• In all, IATA’s financial systems processed over US$315 billion during 2007
  • IATA Clearing House - US$44 billion
  • IATA Currency Clearing Service -  US$26.5 billion
  • Billing and Settlement Plan (BSP) -  US$220 billion
  • Cargo Account Settlement Systems (CASS) - US$23 billion 
  • Other - US$950 million

Agency Programme

• The IATA Passenger Agency Programme provides a system for the accreditation of travel agents that meet specific industry standards and financial and security criteria. 
• Currently there are 60,000 IATA Travel Agents 
  • operating in over 200 countries 
  • selling US$220 billion of airline tickets 
• The Passenger Agency Programme provides a standard method for agents to be recognised by both the travel industry and consumers.

Benefits

IATA Airline Members

• Access to a global distribution network of IATA Travel agents who have signed a single standard Sales Agency Agreement with IATA
• Outsourced agent verification services including legal and financial evaluation and monitoring
• Reliable credit management with a collection rate of 99.98% 
• Access to IATA’s Billing and Settlement Plan (BSP), and BSPlink that together provide a single standard interface for invoicing and payment between the agents and the airline
• Protects the IATA member in case of violation of the Passenger Sales Agency Agreement or fraudulent practices

IATA Travel Agents

• Access to approximately 230 IATA airline members using a single standard Sales Agency Agreement
• Authorisation to sell international and/or domestic tickets on behalf of the airlines
• Access to IATA’s Billing and Settlement Plan (BSP), and BSPlink that together provide a single standard interface for invoicing and payment between the agent and multiple airlines and transport providers  
• Global travel industry recognition through an “IATA Numeric Code” that provides a unique identifier for the agent
• Global consumer confidence due to IATA Travel Agents meeting industry standards identifiable by the IATA logo and branding displayed on Travel Agents premises and websites
• Provides standard procedures which ensure fair and uniform standards in all dealings with the airlines

Consumers

• Confidence that IATA Travel Agents meet industry standards and set financial and security criteria
• Unbiased advice and the option to purchase tickets on a wide range of airlines