Airlines and online travel agencies (OTAs) and people employed there – the time is tough for all. Ever since the pandemic, the airlines' industry has taken a historic hit. Agent/Agency Debit Memo or ADM could pose a respite to the companies in this situation. Nevertheless, it would tend the travelling agents and hence the customers to bear significant losses on their flight bookings done during the lockdown period. So, what is the solution to this? Here is more on this discussion.
What is ADM for Refunds?
An
agency debit memo (ADM) is a notice issued by a carrier to a travel agent,
requiring the recipient to pay a sum of money to the former. The payment
demanded is compensation for the loss incurred to the airline due to
non-adherence of the airline's policy by the travel agent.
The
entire ticketing lifecycle from flight reservation to post-ticketing billing
adjustment (cancellation to refund)relies on several factors like commission,
exchanges, fares, chargeback, fees, refunds, taxes, bookings and miscellaneous
issues. Involvement of multiple factors makes the calculation of loss and
recovery a tedious task.
How big is the ADM for refunds problem?
According
to IATA, for every US$900 of the ticket sold, ADM can recover US$1.In 2015,
airlines issued 2.3 million ADMs transactions for a value of US$579 million,
and it took a whopping amount of US$150 million to manage the ADM process. The
complexity of fare rules and ticket issuance and refund processes not just cost
the airlines in terms of revenue but also in terms of poor customer experience.
The delayed processing often blamethe sour relationship between OTAs and
airlines.
How to solve the ADM for refunds issue?
Thanks
to AI, Machine Learning, and NLP (Natural Language Processing) that automate
the ticketing system and ADM refunds processes. Fare Note Interpreter from IGT
Solutions is one such tool that uses these advanced technologies to add value
to the aviation industry's stakeholders. It expedites the processes and reduces
the probability of errors by successfully interpreting even the most complex
fare rules. It's compatibility with popular reservation systems, and GDS makes
its adoption easier.
Therefore,
if you too are looking for an ADM for refunds solution
for your business, IGT solutions may well help you out.
