GDS Policy

PRECISION AIR SERVICES PLC
GDS Booking Policy
Amended March 2017


1. INTRODUCTION

Increasing operating costs has been a significant factor affecting the aviation industry in the recent past. Cost efficiency is therefore a key success factor that the industry must pursue. Distribution costs account for a significant portion of the airline industry costs so any savings on them greatly contributes to an airlines’ positive financial performance.

With this in mind, Precision Air (PW) would like to enlist the co-operation of our valued Travel Trade Partners (Travel Service providers) to help minimize distribution costs incurred in the process of booking and selling the PW product through Global Distribution Systems (GDS).

Precision Air would like to assure the trade that this policy is in line with the general industry practice and is intended to eliminate the avoidable distribution costs caused by improper GDS booking practices.

2. PURPOSE OF A GDS POLICY

Travel Service providers should take note that Precision Air pays a fee for each booking created, cancelled or changed. These fees are charged even when the passenger has actually never travelled.

A limited volume of transactions per booking is acceptable and forms a natural business pattern, however, it is when such bookings become abnormal that a corrective action needs to be taken and fraudulent practices need to be penalized.

The guidelines and expectations as set in this policy address the “how” of reserving seats and ticketing itineraries while using a Global Distribution System (GDS) so as to eliminate unnecessary and avoidable costs.

By means of this policy Precision Air wishes to lay guidelines for applying best practices for GDS usage and the action that will be taken for each abuse.

We wish to reiterate the fact that following these guideline will not only benefit Precision Air but will also benefit our Travel Trade Partners (Travel Service providers) by ensuring that a true and accurate seat availability position for Precision Air is reflected in the GDS at any point in time. This ultimately allows Travel Service providers access to a greater number of seats for firm and definite passengers and ultimately increased Sales.

Precision Air counts on your support and commitment towards this goal.

3. DEFINITION OF ABUSIVE GDS PRACTICES

Any booking and/or ticketing practice that results in unnecessary and avoidable distribution costs and/or loss of seat sale opportunities are termed as GDS misuse or violation. These improper practices result in excess GDS fees.

4. IMPLEMENTATION DATE

Precision Air is implementing this policy with immediate effect. The penalties tabulated in page 8 under section 10.1. It’s a continuation of the booking policy which was applicable from 15th March 2013. Travel Service providers are therefore requested to implement this immediately.

5. APPLICATION

This policy applies to all Travel Agencies of Precision Air including Travel Service providers, Online Travel Service providers and any person or entity accessing Precision Air inventory via internet or any other electronic means.

Travel Service providers must ensure that all its employees in all of its locations are made aware of this policy and of its future amendments.

The terms and conditions of this policy and its associated practices and procedures are subject to change upon notice by Precision Air.

6. Auditing of Bookings

Precision Air reserves the right to audit all booking transactions to identify non-compliant booking practices.

7. Fraudulent Booking Practices Covered in this Policy

7.1 DUPLICATE BOOKINGS

7.2 FICTITIOUS NAMES AND SPECULATIVE BOOKINGS

Examples of Fictitious Names:

- Mouse/Mickey                         - Test/Tango
- Tango/AAA                             - Obama / Barack
- Smith/A/B/C                            - NTBA/XXX
- Test/Precision                          - SHAH/TEST

7.3 INACTIVE SEGMENTS

7.4 CHURNING OF BOOKINGS

Churning of bookings refers to situations where Travel Service providers continually book, cancel and rebook segments or entire reservations without necessarily ticketing.

7.5 PASSIVES

7.6 INVALID TICKETING

7.7 PASSENGER AND TRAVEL SERVICE PROVIDERS 24 HOUR CONTACT

7.8 BOOKING ON DAY OF DEPARTURE

7.9 NAME CHANGES

8. PRECISION AIR TICKETING POLICY AND RECOMMENDED GDS BEST PRACTICES

9. TERMS OF APPLICATION

10. PROCESS FLOW FOR DEBIT MEMO

Please note: Blocking access to PW inventory may be considered for persistent abusers


10.1 DEBIT MEMO FEE STRUCTURE Table 1: Penalties for Abusive GDS Practice

Table 1: Penalties for Abusive GDS Practice

ABUSE CATEGORY MEASURE PENALTY
Duplicate Bookings Count and Cost of Duplicate Bookings USD 7 per duplicate bookings. Blocking access to PW inventory may be considered for persistent abusers
Fictitious Bookings Count and Cost of Fictitious bookings USD 7 Per Fictitious bookings. Access to PW inventory may be blocked for persistent abusers.
Inactive Segments Number of Inactive Segment USD 7 Per Inactive segment. Access to PW inventory may be blocked for persistent abusers.
Churning Identify segments where values of the following fields match: Passenger Name + Agency (IATA) Number + Departure Date + Flight Number + City Pair (origin / destination). If more than 3 bookings are found for segments with the above conditions, an ADM is raised ADM penalties of USD 7 per segment / passenger. Access to PW inventory may be blocked for persistent abusers.
Passive Bookings Count and cost of Passive bookings USD 7 Per Passive segment. Access to PW inventory may be blocked for persistent abusers.
Passenger or Agents 24/7 Contact Count of and avoidable costs associated with Passengers not advised of disruptions due to lack of Passenger or Travel Service providers contact in PNR. Service Providers cost that would have been avoided if contact information was provided will be billed to the booking agency.
Invalid Ticketing Count of bookings with invalid tickets USD 7 Per booking with invalid ticket. Access to PW inventory may be blocked for persistent abusers.