GDSs Close IATA's Troublesome E-Ticketing Loophole

The major global distribution systems appear to have solved a looming crisis for travel management companies caused by the approaching withdrawal of neutral paper tickets as part of the International Air Transport Association's drive to 100 percent electronic ticketing.

Although IATA will not let travel agents issue tickets on neutral paper stock after May 31, not all airlines will be capable of providing agents with e-tickets for all bookings. This left TMCs and other agents with the prospect of issuing a cumbersome workaround known as a Multiple Purpose Document. TMCs say the MPD duplicates data input, creating more work, wrongly issued tickets and inaccurate management information.

Now Sabre, Galileo, Worldspan and Amadeus have told TMCs they will install a much more efficient solution by June 1. Known as a virtual miscellaneous charge order, it allows TMCs to issue an electronic MCO that the passenger can swap at the airport for a paper ticket. The V-MCO can also be used for more traditional MCO functions, such as infant tickets and excess baggage, which also can prove problematic to issue as e-tickets.

"Sabre has developed an MCO solution, which will be ready on 1 June," a Sabre spokeswoman confirmed to Business Travel News.

The news follows the release of an angry joint communiqué last week by European travel agent association ECTAA and the Guild of European Business Travel Agents, criticizing IATA for refusing even to discuss the problem at a meeting on April 23. They claimed IATA "refused to provide any feedback or start any discussion because of...legal action that has been filed against [it]." This is believed to take the form of a complaint by the Association of Canadian Travel Agents to Canadian competition authorities.

ECTAA and GEBTA want IATA to retain neutral paper stock until all airlines are capable of providing e-ticketing. ECTAA and GEBTA said only 90 percent of tickets issued by agents in Europe are e-tickets. Amadeus said 91 percent of the tickets it generates are electronic, and the IATA Web site quoted 94 percent adoption. IATA's figures show significant regional variation. The United States, Europe and North Asia all are in the high 90s, but Africa and the Middle East are around 80 percent and the countries of the former Soviet Union only 60 percent.

Tony Berry, distribution services director for HRG, welcomed the GDSs' late intervention. Their solution integrates with agents' GDS back-office systems, whereas IATA's MPD solution does not. "From a TMC's point of view, MPD was a disaster," he said. "It would have been very error-prone. We applaud the GDSs for coming up with a paperless version of the miscellaneous charge order."

However, Berry warned travel managers that not all airlines will accept the virtual MCO, although he expects that number to be small. "There will still be issues with some complex itineraries, especially if travelers try to book at the last minute," he said. "I would encourage booking as early as possible."