In the traditional BSP model, the GDS/TSP activates and restricts an Agent’s capability for transaction issuance based on instructions from Airlines and IATA. The IATA Resolution 854 provides obligations to the TSP/GDS to fulfil to airlines’ benefit.
In the BSP NDC environment, the responsibility to fulfil these requirements moves to the Airline who will need to perform these upfront validations to check Agent status and its accesses and to accepted forms of payment before the transaction is issued in the same manner expected from TSP/GDSs. Also the NDC airline becomes responsible for reporting instantly a few sales data for risk management purpose.
The risk, in case of non-implementation of these functionalities, is that it would create an unbalanced BSP environment where TSP/GDS operated sales validated upfront would coexist with NDC sales issued that are reported without upfront validation nor immediate transmission of NDC sales data to monitor Agent overall risk.
Furthermore, the potential risks would not only be for the concerned NDC Airline but also for all other BSP Airlines participating in the same BSP. BSP Airlines may not fully collect their Agent cash sales due to potential inaction from other BSP Airlines participating using the NDC channel.
Airlines Working Group has made recommendations to the Passenger Agency Conference in order to include similar requirements to the TSP/GDS Resolution 854 within the BSP Airline Participation Resolution.
In case your airline uses IFG for NDC transactions purpose, the validations and reporting are already included in the IFG services.
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