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IATA BSP

Consolidator

System (IBCS)

Revenue and sales management solutions for the airline industry

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IATA BSP Consolidator

System (IBCS)

Question:

Given that over 80% of global airline

passenger sales are conducted through

BSP, why hasn’t every airline maximised

their sales and their distribution network

by joining every BSP in the world?

Answer:

Regrettably, it is a business reality that

not all BSP are financially viable for all

airlines. Joining fees and monthly fixed

costs quickly erode revenue potential.

Solution:

To address the above conflict, IATA

Distribution Services (IDS) in conjunction

with APG Global Associates, have

established IBCS, the BSP Consolidator

System.

What is the IATA BSP Consolidator

System?

IBCS is an IATA product and is revolutionary

in addressing the potentially restrictive

expense structure associated with standard

BSP participation and allowing many airlines

access to the considerable benefits of BSPs

in many more markets.

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Regular BSP Membership Costs

Traditionally, BSP costs have been low when ticket volume is high, and expensive when

volume is small; owing to high joining fees and prorated administrative fees based on

the number of participating carriers. BSP costs typically consist of:

• Joining fees of up to USD 25,000 per BSP/Country

• Annual Administration fees of up to USD18,000 assessed on a per carrier basis

• Monthly Local Management fees of up to USD 1,000 (varies per BSP)

• Unit Transaction Process (UTP) fees - vary from USD 0.0283 - USD 0.6633

per transaction processed.

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No Major Capital Expenditure

IBCS is especially suited for scheduled service airlines in two circumstances:

• Established airlines seeking to increase sales in marginal markets

• Small and Start-up Airlines

IBCS helps airlines to generate marginal sales revenues without the burden of

high BSP joining and running fees.

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Advantages Of The IBCS Program

• Full BSP membership in a program backed by IATA

• Delivers the IATA Agent Sales Channel, accounting for 80% of airline revenues

• Affords automated neutral ticket issuance via GDS

• Available worldwide in 86 BSPs (over 100 countries)

• Features a “Pay as you Earn” variable cost system

• Remittance on BSP payment cycle directly to airline

• Participants eligible for IATA Currency Clearance System (ICCS)

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IBCS Costs

IBCS has a nominal up front joining and annual fee; variably costed administrative fee

based on productivity; and a surcharged UTP.

• joining fee of USD 1000 per BSP - A one time levy paid upon joining a BSP (if the

airline is a member of more than 10 BSPs, the airline also has the option of joining 5

BSPs for the single joining fee of USD1, 000 under the IBCS Extend programme, see

next page).

• flat annual membership fee of USD500 per airline - Paid yearly regardless of the

number of BSPS joined

• 3% variable cost administration fee based on productivity – assessed monthly on net

value of tickets sold through BSP

• surcharged UTP - USD 2.50 per UTP

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New Product – IBCS Extend

Available to airlines already present in at least 10 BSP either directly

or via the IBCS program

• joining fee of USD 1000 for a block of any 5 BSPs

• annual fee, administration fee, and SCU cost remain the same

• Additional Service provided by the consolidator: for a period of 6 months from the

airline’s activation in the BSP, APG will send a weekly E mail to all IATA travel agents

located in the relevant BSP, in their local language, informing them of the distribution

policy and rules of the IBCS airline.

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APG IBCS Services

• Handles application formalities for the airline with the BSP offices

• Functions as the local carrier representative to BSPs

• Executes agreements between the airline and the BSP

• Controls agent ticketing authorities (if required)

• Performs a monthly basic ticket audit of tickets sold through BSP

• Processes Travel Agent Debit/Credit Memos (ADMs/ACMs)

• Provides an active interface with IATA

• Set up and maintenance of banking and credit card facilities (if required/not available in all BSPs)

• Set up local banking relationships

• Assist in local credit cards acceptance/clearance process

• Travel Agent Helpdesk

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IBCS - Why Now?

IATA created IBCS to enable airlines to cost effectively generate revenues in

marginal markets, while simultaneously stimulating BSP membership, increasing

transactional throughput and thereby reducing costs for all BSP members.

IATA chose APG Global Associates to administer the IBCS program worldwide,

functioning as the liaison between the airlines in the IBCS and the BSPs in those

countries where APG GA has a presence.

The IBCS program is now available in BSPs throughout the world via the extensive

network of the APG Association which now covers over 100 countries.

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Facts and Figures – IBCS Globally

• 230 different airlines since its creation

• 900+ active airline/contracts (over 1200 since its creation)

• Revenue processed to date: USD 900 million

• Double digit yearly growth

• Product available in 86 BSPS worldwide

• An average of a new Carrier/BSP IBCS agreement signed every day

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IBCS Summary

• Full BSP membership, backed by IATA

• Variable Cost Based

• Open to both IATA and non-IATA airlines

• Automated neutral ticket issuance via GDS

• Remittance received directly from the BSPs

• No long term contracts - 90 days notice

• Conversion to normal BSP without penalty