issued by 15% of the airlines. About 80% of ... purchased further in advance. FOLLOW ... Data obtained and used with per
IMPACT OF AGENCY DEBIT MEMOS ON TRAVEL AGENCIES ADMs by the numbers In 2015, there were over $650M in ADMs globally! ($142M from ARC & $530M from IATA/BSP)
About 80% of ADMs are driven by approx. 20% of the BSPs countries
80% of total ADMs are issued by 15% of the airlines
Sizing the problem AVERAGE AMOUNT OF A DEBIT MEMO (BASED ON ARC DATA) 2010 | $218
ADM RATE BY AGENCY BUSINESS SEGMENT ADM payout per ticket (USD)
2015 | $291
60% OF DEBIT MEMOS ARE FOR AMOUNTS LESS THAN $25 sometimes the service fee paid to dispute the memos is more expensive than the memo itself
$0.35
$0.84
$0.87
$0.45
CORPORATE
LEISURE
CONSOLIDATOR
ONLINE
*Based on data from 2013 - 2015 from Sabre Global Consulting engagements across multiple regions and all major GDSs
ONLY ABOUT ONE THIRD OF MEMOS ARE DISPUTED
Consolidators have the highest ADM per ticket payout due to work with multiple sub-agencies
about half of those disputes are accepted by ARC and IATA
Since the issuing agency carries the liability, ADMs often fall on the consolidator
GLOBAL ADM DISTRIBUTION COUNTRIES WITH HIGHEST ADM VOLUME
COUNTRIES WITH HIGHEST ADM DOLLAR AMOUNT Argentina $35M Brazil $33M United Kingdom $30M India $26M Saudi Arabia $22M
FAST FACTS: chargeback debit memos
Discount Economy drives more chargeback debit memos than any other cabin class (59%)
Best practices to help prevent ADMs
Equip your agency with the right tools to reduce ADMs Policy & Procedures
Technology
FOLLOW ALL THE BEST RULES SET FORTH BY ARC AND BSP
UTILIZE FRONT AND MID-OFFICE TECHNOLOGY TO AUTOMATE PROCESSES
Organizational ADM TRACKING IS KEY Set up an adequate tracking process to help operational teams understand the reasons and scope of the problem
Last minute tickets, purchased 0-7 days before the flight, drive twice as many chargeback memos compared to tickets purchased further in advance
INCLUDE ADM PAYOUT RATE PER TICKET to the operational key performance indicators (KPIs)
CENTRALIZE TICKETING, REFUND AND EXCHANGE OPERATIONS
Visa has started to accept the flight manifest documents in the ARC market for disputing fraud claims relevant to credit card chargebacks
TARGETED TRAINING FOR DEBIT MEMO AVOIDANCE
Sources Data obtained and used with permission from the Airlines Reporting Corporation and IATA ADM analysis conducted in engagements by Sabre Consulting Services
