New Gen ISS Status New Gen ISS Project

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New Gen ISS Status

New Gen ISS Status

New. Gen ISS Project Vision – How is it going to impact the industry?

New. Gen ISS Project Vision – How is it going to impact the industry? Through New. Gen ISS, IATA aims to deliver a more relevant, secure and customer-centric BSP for both Agents and Airlines. Today Future Brick & Mortar, Agent choice. OTAs, of Multinational TMCs etc. Accreditation Model One Size Fits All Accreditation Inflexible approach, same Risk Management processes for all Agents Limited Payment Methods BSP Risk Management that mitigates risk exposure, new Financial Security options New Payment Solutions 2

New. Gen ISS Integrated Program Elements Ø IATA aims to deliver a more relevant,

New. Gen ISS Integrated Program Elements Ø IATA aims to deliver a more relevant, secure and customer-centric Passenger Agency Program through the following New. Gen ISS initiatives: Agency Accreditation Models Remittance Holding Capacity $ IATA Easy. Pay New. Gen ISS Global Default Insurance 3

Agency Accreditation Models From one Accreditation Model to three New. Gen ISS 4

Agency Accreditation Models From one Accreditation Model to three New. Gen ISS 4

Risk History and Events New “Risk management model” New. Gen ISS 5

Risk History and Events New “Risk management model” New. Gen ISS 5

Risk History and Events No more Irregularities but “Risk Events” 1 Authorization to use

Risk History and Events No more Irregularities but “Risk Events” 1 Authorization to use Cash Payment Method for less than 24 2 Late or short payment 3 Payment in the wrong currency 4 Payment Default 5 Failure to provide financial statements 6 Major change of ownership or change of legal status 7 Unreported change of ownership, legal status or legal name 8 Change of Head Entity’s location to another country 9 Failure to provide a Financial Security 10 Default due to common ownership 11 Prejudiced collection of funds New. Gen ISS 6

ISS RHC -New. Gen Remittance Holding Capacity Managing the Remittance Holding Capacity Ø A

ISS RHC -New. Gen Remittance Holding Capacity Managing the Remittance Holding Capacity Ø A monetary threshold to the agent’s outstanding cash sales (monies at risk) will be established for all Agents with a Cash Facility. $ Agent’s Remittance Holding Capacity Continued selling using CC and IATA Easy. Pay Option to amend financial security amount and increase/ decrease the capacity Agent’s accumulated cash sales Open to IATA Easy. Pay at anytime Open to advanced remittances at any time. Remittance Date Day 1 Day 2 Day 3 Previous Period Sales New. Gen ISS Day 4 Day 5 Day 6 . . . Current Period Sales 7

RHC New. Gen ISS Remittance Holding Capacity Calculation Assessment Fin. Review Risk History Risk

RHC New. Gen ISS Remittance Holding Capacity Calculation Assessment Fin. Review Risk History Risk Status PASS A Remittance Holding Capacity 100% PASS FAIL B FAIL PASS FAIL C Equal to financial security amount provided *The Financial Security calculation is a separate calculation defined in Local Financial Criteria New. Gen ISS 8

New. Gen ISS IATA Easy. Pay - a new industry payment method IATA Easy.

New. Gen ISS IATA Easy. Pay - a new industry payment method IATA Easy. Pay New. Gen ISS 9

New. Gen. ISS New. Gen Iata Easy. Pay – a new industry method of

New. Gen. ISS New. Gen Iata Easy. Pay – a new industry method of payment IATA Easy. Pay - a new industry payment method - New, voluntary pay-as-you-go’ e-wallet for agents - IEP gives non-accredited agents new route to accreditation through the Go. Lite model, reduces agents’ financial security amounts with IATA New. Gen ISS 10

New. Gen ISS Global Default Insurance New. Gen ISS 11

New. Gen ISS Global Default Insurance New. Gen ISS 11

New. Gen ISS Insurance Global New. Gen Default ISS GDI Benefits for Travel Agents

New. Gen ISS Insurance Global New. Gen Default ISS GDI Benefits for Travel Agents Benefits Global IATA Easy. Pay Default Insurance - a new industry payment method Ø New, cost- effective financial security alternative that agents can opt for Ø Agents can seek coverage under GDI for the corresponding amount of financial security required by IATA Ø Lower cost than other acceptable Financial Security types Ø Allows Agents to obtain a higher cover in a short time frame, and to increase their Remittance Holding Capacity as applicable New. Gen ISS 12

New. Gen ISS Insurance Global New. Gen Default ISS What does New. Gen ISS

New. Gen ISS Insurance Global New. Gen Default ISS What does New. Gen ISS Implementation mean? Benefits Global IATA Easy. Pay Default Insurance - a new industry payment method Ø All accredited agents transitioned to the Go. Standard model Ø Agents will be able to convert to Go. Lite model Ø Go. Standard agents will be assigned their RHC amounts & Risk Status Ø RHC Alerts/Customer Portal monitoring will be available for agents Ø IATA Easy. Pay available as an optional payment method Ø GDI available as an optional financial security New. Gen ISS 13

New. Gen ISS Insurance Global New. Gen Default ISS CURRENT STATUS OF THE PROJECT

New. Gen ISS Insurance Global New. Gen Default ISS CURRENT STATUS OF THE PROJECT Benefits Global IATA Easy. Pay Default Insurance - a new industry payment method Ø By the end of 2018, total of 40 markets representing over 25% of BSP Cash sales had been migrated to Resolution 812 Ø For 2019, the target is to have New. Gen ISS implemented in BSPs representing 90% of BSP Cash Sales Ø Remittance Holding Capacity Ø Since the first market go-live on March 2018 to December 2018 only 2. 9% of the total Agent population reached 100% of their RHC Ø IATA Easy. Pay Transactions Ø IATA Easy. Pay adoption has been progressively increasing Ø Global Default Insurance (GDI) Ø At the end of 2018, GDI was launched in 137 markets worldwide New. Gen ISS 14

New. Gen ISS Insurance Global New. Gen Default ISS To take into consideration Benefits

New. Gen ISS Insurance Global New. Gen Default ISS To take into consideration Benefits Global IATA Easy. Pay Default Insurance - a new industry payment method Ø Sunset of Monthly Remittance Ø PAConf 41 endorsed changes to remove monthly remittance frequency in a number of BSP operations. These APJCs are required to phase-out the monthly remittance by 31 December 2019. Ø Markets with Weak LFC Ø PAConf/41 endorsed changes to Resolution 800 f allowing IATA to identify markets where Financial Securities are deemed to be insufficient and to conduct a review of the Local Financial Criteria through a 3 rd party financial expert (considering Financial Security Coverage, % of Unrecovered Amount VS Total Gross Sales, number of Terminated Agents with Unrecovered Debt, Number of Days at Risk) New. Gen ISS 15

New. Gen ISS Insurance Global New. Gen Default ISS To take into consideration Benefits

New. Gen ISS Insurance Global New. Gen Default ISS To take into consideration Benefits Global IATA Easy. Pay Default Insurance - a new industry payment method Ø Ø Ø Ø New. Gen ISS Transparency in Payments (TIP) is an Industry initiative focused on providing airlines with increased transparency and control in the collection of their sales through the travel agency channel TIP reveals the different costs associated with each form of payment No form of payment is barred by TIP but agents can only use those forms to which an airline has previously given consent TIP allows agents to register their Agency Cards directly in BSPlink with individual consent of the airlines for use in BSPlink TIP was implemented across 43 markets in 2018, representing approximately 50% of BSP Card Sales globally For 2019, the target is to be live in BSPs representing an accumulated 95% of e BSP Card Sales TIP Go-Live in Croatia March 1, 2019 TIP Airline Payment Policy Distribution 16

New. Gen ISS 17

New. Gen ISS 17

Questions New. Gen ISS 18

Questions New. Gen ISS 18

For More Information Email: newgeniss@iata. org Website: www. iata. org/newgeniss Thank you! New. Gen

For More Information Email: newgeniss@iata. org Website: www. iata. org/newgeniss Thank you! New. Gen ISS 19