ARC has released a document outlining best practices for
avoiding and managing debit memos, created by its Debit Memo Working Group.
The group -- whose members are representatives of airlines,
travel agencies, GDSs, ATPCO and ASTA -- created the document to help streamline the
debit memo process. The group spent more than one year working on it.
The best practices, which ARC said are the first in the
industry, span 15 pages outlining the responsibilities of agencies, airlines
and, in some cases, ARC itself.
It covers topics spanning the life of a debit memo, from
proper debit memo training to resolution.
For example, the entry for "automation" offers
best practices for agencies and airlines. The agency should "use GDS
auto-pricing when possible to avoid errors," while the airline should "strive
to use automation when loading all fares to ATPCO, including refunds and
exchanges," and "when an automated category conflicts with a manual
category ... the automated category should take precedence over the manual one."
In 2017, $119.4 million in debit memos were issued, down
from $145.1 million in 2016.
"When debit memos do arise, we can all leverage this
document to examine our habits, and align to the best of our ability with what
the industry has defined as best practices," Paula Peitz, director of
airline accounting for Carlson Wagonlit Travel, said in a statement. "This
will drive consistency in our process and allow us to work more effectively
with our industry partners."
The Debit Memo Working Group will revise the best practices
as necessary going forward, ARC said.