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Common IAR Exchange Errors Webinar Questions and Answers January 17, 2018 1 3000 Wilson Blvd., Suite 300 Arlington, VA 22201 703.816.8000 www.arccorp.com General Questions Q: When there is an Exchange with an Add Collect, IAR returns the original form of payment even though the customer may want to use a different form of payment. Is this a bug in the system that will be resolved? A: For exchange transactions, IAR always returns the original form of payment when the value in IAR reflects an exchange with refund value. This is how the system was designed. A difference in FOP can occur when the new document in an exchange is issued without a penalty, when a residual value MCO was not properly linked or when some other GDS formatting issue occurs. However, as long as the exchange is an additional collection and the customer would like to use a different FOP for the Add Collect amount, you should be able to remove and add the new credit card number in the Exchange Summary screen. Be sure to include the credit card approval code for the updated FOP. Q: When you refer to the Exchange document, are you referring to the new or old document? A: When I say Exchange document, I am referring to the old document. Q: Can a residual value that is being lost be added to the IAR Admin/Penalty field instead of the Adjustment field? A: When issuing the exchange through your GDS, you can increase the penalty amount by the residual amount. This is recommended because there is no GDS entry that will link to the IAR Adjustment field. The IAR Adjustment field is an IAR only field that was specifically designed as a workaround to accommodate the residual value that is being lost. Q: When using the IAR Partial Exchange Workaround, will IAR populate the Hawaii taxes? A: Yes, when using the IAR Partial Exchange Workaround, IAR will populate the Hawaii taxes if applicable. The IAR workaround will populate all applicable tax codes and amounts for Option 1 and all applicable tax codes for Option 2. Q: For an exchange transaction, when the new fare is lower than the original fare, should the price be adjusted to reflect the correct penalty amount? A: When issuing an exchange transaction, the transaction must be issued as defined by the validating carrier. If there is an administration penalty, you must follow the rules of the airline. If not, this can lead to the issuance of a debit memo.

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CommonIARExchangeErrorsWebinarQuestionsandAnswers

January17,2018

1

3000 Wilson Blvd., Suite 300 Arlington, VA 22201

703.816.8000

www.arccorp.com

General Questions Q: WhenthereisanExchangewithanAddCollect,IARreturnstheoriginalformofpayment

eventhoughthecustomermaywanttouseadifferentformofpayment.Isthisabuginthesystemthatwillberesolved?

A: Forexchangetransactions,IARalwaysreturnstheoriginalformofpaymentwhenthevalueinIARreflectsanexchangewithrefundvalue.Thisishowthesystemwasdesigned.AdifferenceinFOPcanoccurwhenthenewdocumentinanexchangeisissuedwithoutapenalty,whenaresidualvalueMCOwasnotproperlylinkedorwhensomeotherGDSformattingissueoccurs.However,aslongastheexchangeisanadditionalcollectionandthecustomerwouldliketouseadifferentFOPfortheAddCollectamount,youshouldbeabletoremoveandaddthenewcreditcardnumberintheExchangeSummaryscreen.BesuretoincludethecreditcardapprovalcodefortheupdatedFOP.

Q: WhenyourefertotheExchangedocument,areyoureferringtotheneworolddocument?A: WhenIsayExchangedocument,Iamreferringtotheolddocument.Q: CanaresidualvaluethatisbeinglostbeaddedtotheIARAdmin/Penaltyfieldinsteadof

theAdjustmentfield?A: WhenissuingtheexchangethroughyourGDS,youcanincreasethepenaltyamountbythe

residualamount.ThisisrecommendedbecausethereisnoGDSentrythatwilllinktotheIARAdjustmentfield.TheIARAdjustmentfieldisanIARonlyfieldthatwasspecificallydesignedasaworkaroundtoaccommodatetheresidualvaluethatisbeinglost.

Q: WhenusingtheIARPartialExchangeWorkaround,willIARpopulatetheHawaiitaxes?A: Yes,whenusingtheIARPartialExchangeWorkaround,IARwillpopulatetheHawaiitaxes

ifapplicable.TheIARworkaroundwillpopulateallapplicabletaxcodesandamountsforOption1andallapplicabletaxcodesforOption2.

Q: Foranexchangetransaction,whenthenewfareislowerthantheoriginalfare,shouldthe

pricebeadjustedtoreflectthecorrectpenaltyamount?A: Whenissuinganexchangetransaction,thetransactionmustbeissuedasdefinedbythe

validatingcarrier.Ifthereisanadministrationpenalty,youmustfollowtherulesoftheairline.Ifnot,thiscanleadtotheissuanceofadebitmemo.

CommonIARExchangeErrorsWebinarQuestionsandAnswers

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Q: WilltherebeanEMDwebinar?A: Yes,therewillbeanEMDwebinarthisyear.Q: WhencanthecommissionbemodifiedinIAR?A: WhenatransactionisissuedintheGDS,agentshaveuntilthenextbusinessday,by11:59

PMETtomodifythecommissioninIAR.WhenatransactionismanuallykeyedintoIAR,thecommissioncanbemodifiedby11:59PMET,thesamedaythattransactionwaskeyedintoIAR.

Inadditiontocommission,fourotherfieldsmaybemodifiedinIARonanerror-freeE-

ticket:TourCode,TicketDesignator,CertificateNumberandMiscellaneousSupport/WaiverCode.

Q: Isthereanexchangetrainingcoursethatincludesinternationaltaxes?A: Currently,ARCdoesnotincludeinternationaltaxesinanyofitstraining.International

taxescanbecomeverycomplicatedaseachcountryhastheirowntaxes,rulesandpolicies.Besidesprocessingthetaxesthatareappliedtoatickettransaction,ARCdoesnotgetinvolvedwiththeapplicabletaxesforeachcountry.

AgoodresourcewouldbeIATA.Theymanagethesettlementplansforallcountries

excepttheUnitedStates(whichismanagedbyARC).Theywouldhavedetailedinformationintheapplicabletaxesfortheirsettlementplans.

Q: WhatisARC’sDebitMemoWorkingGroup?A: ARC’sDebitMemoWorkingGroupisagroupstartedbyARCthatconsistsofARC,airlines,

travelagents,GlobalDistributionSystems(GDSs)andindustrypartnerssuchasIATAandATPCO.Thepurposeofthegroupistoworktogetherinunderstandingwhydebitmemosareissued,whatcanbedonetoreducethemandwhatcanbedonetostandardizethedebitmemoprocess.

Thegrouphasmadealotofprogresssinceitsconceptioninlate2012.Asaresult,there

havebeensomeairlinesthathavebeenabletosignificantlyreducethenumberofmemosbeingissued.

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3000 Wilson Blvd., Suite 300 Arlington, VA 22201

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IAR Partial Exchange Workaround Questions Q: CanOption1fortheIARPartialExchangeWorkaroundbeappliedtopartialexchanges

withoutreceivingdebitmemos?A: TheIARPartialExchangeWorkaroundshouldonlybeusedasthelastoptionifyouare

unabletodeterminetheactualunusedvaluesoftheolddocumentthatisbeingexchanged.ARCdevelopedthisworkaroundwiththeguidancefromaspecificairlinetohelpprovideasolutiontomitigatethenumberofpartialexchangeerrorstheywerereceiving.Thisworkaroundusesthe“point-of-origin”exchangerepricinglogicusedbymostGDSautorepricingtoolsinsteadofthe“point-of-interruption”repricinglogicthatrepresentstheactualunusedvaluesofeachcoupon.IARisareportingsystem,notapricingsystem,soIARisunabletodetermineunusedvaluesofindividualcoupons.

Whenimplemented,ARC’sparticipatingairlineswereinformedofthisworkaroundandthepurpose.However,itisuptoeachindividualairlinetodeterminehowtheirexchangetransactionsshouldprocessed.

Q: IARdoesnotautopopulatethetaxcodesforexchangetransactions.A: WhenusingtheIARPartialExchangeWorkaround,youmustenterthetotalamountofthe

originaldocumentthatisbeingexchangedintheIAROldFareandOldTotalfieldsandthenselecttheADDbutton.IARwillthenautofilltheExchangeSupportscreenwithalloftheoriginallyreportedvaluesincludingtheoriginaltaxcodes,taxvaluesandcommission(Option1).WhentheExchangeSupportscreenisauto-filledwiththeoldvalues,youwillseethemessage:IAR separated the old fare/taxes for you based on your -Old Total-

Tobringbackonlythetaxcodes(Option2),youmustenteranamountthatislessthanthetotaloftheoriginaldocumentthatisbeingexchangedintheIAROldFareandOldTotalfield.WhentheExchangeSupportscreenisauto-filledwiththeoldtaxcodes,youwillseethemessage:Please review taxes - Leave -Tax Amt- blank if not required for exchange

CommonIARExchangeErrorsWebinarQuestionsandAnswers

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3000 Wilson Blvd., Suite 300 Arlington, VA 22201

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Q: DoestheIARPartialExchangeWorkaroundreturnthecommissionamountinadditionto

thetaxes?A: Yes,whenusingOption1oftheworkaround,IARwillreturnalltheoriginallyreported

values,includingtheoriginalcommissionamount,forthedocumentthatisbeingexchanged.

Q: WhenusingtheIARPartialExchangeWorkaround,canmorethanonecouponnumberbe

enteredintotheexchangecouponfieldontheIARExchangeSupportscreen?A: Yes,intheCouponfield,enterthecouponnumbers.Forexample,when

exchangingCoupons1,2and3,enterjustthosecouponnumbersintheCouponsfield:

Q: Whenperformingapartialexchangetransaction,howdoIgettheunusedtaxesfortheold

documenttopopulateinIAR?A: Whenissuingapartialexchange,itisrecommendedthatyouuseyourGDS’sexchange

repricingtoolsothatyourGDSformatwillsendthecorrectdatatoIAR.YourGDSrepresentativecanprovideyouwithmoreinformationontheirautomatedexchangerepricingfunctionality.

Asalastoption,youcanusetheIARPartialExchangeWorkaround.Thisoptionhowever,

willreturnthefulloriginalvaluesoftheolddocumentthatisbeingexchanged.Q: WhenusingOption1oftheIARPartialExchangeWorkaround,Ithoughtyoucanjustadd

theoriginaltotalamountoftheolddocumenttotheOldTotalfield(nottheOldFarefieldaswell),clicktheNextbuttonandalloftheoriginaltaxeswouldbeadded.

A: Actually,theworkaroundwillbringbacktheoriginaltaxcodesandamountswhenyouenterjustthefulloriginaltotalamountintheOldTotal,butyouwillneedtopressEnteronyourkeyboardinsteadofselectingtheADDbutton.IfyouselecttheADDbutton(insteadofpressingEnter)andhaveonlycompletedtheOldTotalfield,youwillgetanerrormessageindicating,OldFareplusOldTaxesmustequalOldTotal.WhentheExchangeSupportscreenisauto-filledwiththeoriginallyreportedvaluesusingeithermethod,youwillseethemessage:IAR separated the old fare/taxes for you based on your -Old Total-

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CommonIARExchangeErrorsWebinarQuestionsandAnswers

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3000 Wilson Blvd., Suite 300 Arlington, VA 22201

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Q: WilltheIARPartialExchangeWorkaroundworkforbothdomesticandinternationaltaxes?

A: Yes,theIARPartialExchangeWorkaroundisapplicabletoalltaxes,includingInternationaltaxesthatwereappliedtoatickettransaction.

Companion MCO for Residual Value Questions Q: WhatisanexampleofaMCOnotbeingallowedforresidualvalue?A: Eachindividualairlinedefineswhetheraresidualvaluecanbeapplied(I.e.refunded,

issuedtoaresidualvalueMCO,lost/forfeited).AnairlinemayprohibitaMCObeingusedforresidualvaluebasedonclassofservice.Typically,lowerfareoptionshavethemostrestrictions.Manyairlineshaveapolicythatanyresidualvalueisforfeited(lost).

Q: IfwedonotwanttocreateaMCOforresidualvalue,cantheresidualamountberemoved

fromtheexchangetransaction?A: Yes,iftheresidualvalueisconsideredaforfeited“Lose-it-Amount”,youcanusetheIAR

Adjustmentfieldtoaccommodatetheresidualamount.Remember,youmusthandletheresidualvalueasdefinedbythevalidatingcarrier.Anydeviationcanleadtotheissuanceofadebitmemo.

Q: AreMCO’sstillbeingusedorarehavetheybeenreplacedbyEMDs?A: MCOsarestillusedandwillbethelastremainingpaperdocumentasoftheendofJune

2018.

EMDswilleventuallyreplaceMCOs,howeverwearenotthereyet.TheuseofEMDsarecurrentlydefinedbythefunctionalityofeachindividualairline.Somecarriersdosupportagents’abilitytoissueEMD,includingEMDsforresidualvalue.AtthistimeIARcannotautomaticallylinkaresidualvalueEMDtoitsexchangetransaction.

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Q: WhentryingtolinkacompanionMCOtoanexchangetransaction,IenterFutureAirTransportationintheMCO’sTypeofServicefield.TheMCOdoesnotlinkinIAR.

A: IARcanonlyperformtheautomatedlinkingofaresidualvalueMCOtoitsexchangetransactionwhentheinformationissentfromtheGDStoIAR.IARcanonlyautomaticallylinkaresidualvalueMCOtoitsexchangewhen:1. ThenewMCOincludesthenewexchangedocumentnumberinthe'ISSUEDIN

CONNECTIONWITH'fieldandtheword'RESIDUAL'or‘FUTURE’inthe'TYPEOFSERVICE'field

2. ThenewexchangeticketandtheMCOareissuedonthesamedayAnydeviationsuchasmisspellingofthewordsResidualorFutureorissuingtheMCOonadifferentdate than thenewexchangewill interrupt the linkingprocessand IARcannotperformtheauto-link.Remember, you cannot manually perform the link by typing the word “Future” or“Residual”ontheMCOInformationscreen.Instead,youmustenterthe10-characterMCOdocumentnumberunderthe“Exchanges:NewDocuments”fieldontheFinancialDetailsscreenofthenewexchangedocument.

Q: WhenissuingacompanionMCOforresidualvalue,mustIenterFutureorResidualValue

intheMCO’sTypeofServicefield?InormallyenterCreditandmanuallylinktheMCOtotheexchangeinIAR.

A: TheresidualvalueMCOauto-linkingfeaturewasaddedtoIARtohelpimproveandstreamlinetheexchangereportingprocessforagents.WhenissuingaMCOforresidualvalueinyourGDS,inorderfortheMCOtoautomaticallylinktotheexchangetransactioninIAR,youwillhavetoentereitherFutureorResidualValueintheMCO’sTypeofServicefield.Itisokifyouchoosetoentersomethingelse,butkeepinminddoingsowillcausetheMCOtonotautomaticallylinktotheexchange.YouwillthenhavetomanuallylinktheMCOinIAR.

Q: IsthereamaximumnumberofMCOsthatcanusedforanexchangetransaction?A: Themaximumnumberofnewdocumentsthatcanbeaddedtoanexchangetransactionis

20.ForcompanionMCOsissuedforresidualvalue,unlessinstructedbytheairline,onlyoneMCOshouldbeissuedforthefullamountoftheresidualvalue.Anydeviationandresultinadebitmemo.

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3000 Wilson Blvd., Suite 300 Arlington, VA 22201

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Q: HowdoesanEMDissuedforresidualvaluelinktoanexchangetransaction?A: Currently,thelinkingprocessforEMDsissuedforresidualvalueisnotyetavailable.Ifa

carriersupportsissuanceofanEMDtotransferresidualvalue,youmustmanuallylinkthatEMDtoitsexchangetransactioninIAR.FullEMDfunctionality,includinganEMDInformationscreenandauto-linkingofresidualvalueEMDsisplannedasafuturephaseofIAR.

GDS Questions Q: IARdoesnotautopopulatethetaxcodesforexchangetransactions.A: WhenissuingapartialexchangetransactionthroughyourGDS,IARwillonlypopulatethe

unusedtaxes/taxcodesunderthefollowingsituations:

• GDSRepricingtool–IARwillpopulatetheunusedtaxcodesandtaxvalueswhenyouusethecorrectGDSexchangeauto-repricingformat.

• IARPartialExchangeWorkaround(Option1)-IARwillpopulatetheoriginaltaxes(taxcodesandassociatedamounts)ifyoumanuallyentertheoriginaltotalofthedocumentthatisbeingexchangedintheIAROldFareandOldTotalfieldontheIARExchangeSupportscreen.

• IARPartialExchangeWorkaround(Option2)–IARwillpopulatetheoriginaltaxcodes(nottaxamounts)ofthedocumentbeingexchangedwhenyouenteranamountthatwaslessthantheoriginaltotalinboththeIAROldFareandOldTotalfieldsontheIARExchangeSupportscreen.

Q: WehavehadanissuewithexchangetransactionsbeingvoidedintheGDS.Thevoidstatus

appearsintheGDSandontheairlineside,howeverthevoiddoesnotshowinIAR.Whenthishappens,wehavetorefundthetransactions.

A: IfyouvoidedatickettransactionthroughyourGDS,howeveritdoesnotappearinIAR,theremayhavebeenatransmissionissuewiththeGDS.Whenthisoccurs,youneedtonotifyARC’sCustomerCareCenterimmediately.Theywillbeabletoescalatetheissue.

AbestpracticeistocheckyourIARsalesreportsdailytoidentifyanydiscrepancies.

Whenyoucheckyoursalesreportdaily,youwillbeabletoidentifyanymissingvoidtransactions.ThiswillallowyoutovoidthetransactioninIARsincethetransactionwill

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3000 Wilson Blvd., Suite 300 Arlington, VA 22201

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stillbewithintheIARvoidwindow.Thiscanoccurwhenadocumentisissuedthenexchangedlaterthatsamedayforanewdocumentandthenboththeolddocumentandthenewdocumentarevoided.Whenthevoidfortheolddocumentisreceivedbeforethevoidforthenewdocument,IARrejectsthatvoidbecauseIARshowsthatdocumentstillusedintheexchangeforthenewdocument.

Refundingaticketthatcannolongervoidedcanresultinadebitmemoiftheticketis

non-refundable.Q: WhichGDShasthemostexchangeerrors?A: ExchangeerrorscomeacrossallGDSs.AlloftheGDSsofferarepricingtoolthatcanbe

sendtheunusedvaluesofanolddocumentbeingexchangedtoIAR.However,allagentsdonotusetherepricingtoolsandtheGDSrepricingtoolcannotalwaysbeusedforeveryexchange.

Toprovidesomebackgroundinformation.Eachnight,GDSssendARCatransactionfile

calledtheSystemProviderReportingFile(SPRF)thatcontainsalloftheirdailytransactions.Eachtransactionhasaspecificfilelayoutthatcontainsdifferentrecordsbasedonthetransactiontype.

Inthelate90’swhenARCdevelopedarecordlayouttobeabletoreceivetheunused

valuesforanexchangetransaction,theGDSswerenotabletosupportitbasedonprogramming.Astimewentby,eachGDSdevelopedrepricingtoolproductswhichwouldbeanalternativethatcouldsupporttheircustomerswhenissuingpartialexchanges.

Q: WhatarenumericcodesthatareusedtoidentifyeachGDS?A: TheGDScodesare:

• Amadeus-7906• Apollo-5880• Farelogix–9413• Galileo-7733• Sabre-0011• Worldspan-5235

Q: HowdoIaccesstheGDS’srepricingtool?A: ToaccessyourGDS’srepricingtool,youwillneedtocontactyourGDSrepresentative.

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3000 Wilson Blvd., Suite 300 Arlington, VA 22201

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Q: WheredowefindtheexchangepoliciesintheGDSbesidesintheGDStariffdisplay?A: YourGDSrepresentativecandirectyoutowhereticketingpoliciescanbefoundinyour

GDSsystem. OnARC’scorporatewebsite,includedinourlistofparticipatingairlines,mostairlines

havealsoprovidedalinktotheirindividualpolicies.Dependingontheairline,youmayberequiredtologintoasecurewebportal.ProvidingthislinkwasinaninitiativethatcamefromARC’sDebitMemoWorkingGroupinorderforairlinestobemoretransparentontheirpolicies.

ARC’sParticipatingAirlinesQ: DoesSabrenolongerguaranteeanAutomatedExchange?A: EachGDShastheirownpoliciesregardingtheirrepricingtool.Youwillneedtocheck

withyourGDSrepresentativeaboutanyguaranteeoption.

Airline Questions Q: Whatisthetimeframefortheissuanceofdebitmemosbyairlines?A: Thetimeframeinwhichdebitmemosareissuedvarybyairline.ARC’sDebitMemo

WorkingGroupisworkingtodefineandputintopracticeastandardizedtimeframefortheissuanceofdebitmemos.Thisischallengingbecauseeachairlinehasdifferentprocessesinplacewhichdefineswhenadebitmemoisissued.

For example, when a ticketing violation is identified, an airline may issue a debit memo as soon as the transaction was processed and settled while another airline may wait until after the passenger has used the ticket.