After two delayed launches this year, Iata says it is ready to launch NewGen ISS (New Generation of Iata Settlement Systems) in Southern Africa on December 1.
Asata has received several queries from agents confused between the extension of Iata’s monthly remittance to April and the roll-out of NewGen ISS in December. Within NewGen ISS, monthly remittance settlements will still be available until April 30, after which remittance frequencies will move to weekly or every second week.
Asata is advising agents to look out for a switchover to NewGen ISS notification from Iata where they need to take note of a few points, says ceo of Asata, Otto de Vries. This email should have been sent to agents by Iata at the end of October.
“Most agents will be switched over to the GoStandard Accreditation on December 1, which is essentially the same accreditation as before. However, if an agent’s risk assessment brought up any problems, Iata may inform them that they are required to switch to GoLite. This means agents can only transact with airlines through
Iata’s BSP using the Iata EasyPay and Card forms of payment. Agents can also voluntarily choose to switch over to GoLite where there is no minimum financial security requirement and they are not subjected to an annual financial review,” he says.
He adds that agents should check their risk status, which should automatically be set as ‘Risk Status A’ (a low-risk agency) and advises agents to check their Remittance Holding Capacity (RHC) amount. Going forward, If an agency’s sales approach its RHC limit, the agency will be advised by Iata and will need to take steps to avoid having cash sales suspended. To do this, the agency could settle its
BSP early or switch cash sales over to the voluntary pre-funded EasyPay account payment option, says Otto. RHC is a maximum cash ticketing threshold assigned to each travel agent.
Iata held a recent webinar for agents on the NewGen ISS implementation covering topics such as ‘Which accreditation model fits your agency’; ‘How to put an RHC management strategy in place’, and ‘How to open an Iata EasyPay account’.
“For most agents the NewGen ISS go-live is transparent. There is no action to take unless agents are close to reaching their RHC or if they want to use Iata EasyPay or apply for GoLite accreditation. When NewGen ISS is implemented, all accredited agents are automatically transitioned
to the GoStandard model. Going forward they will be able to convert to GoLite if they choose. New agents can apply directly for the GoLite or GoStandard Accreditation,” said Iata spokesperson, Perry Flint. Perry says while it is unlikely that most agents will reach their RHC, it is important for agents to understand what it is, define who will monitor it and have a strategy in place for managing it.
RHC is calculated for most agents based on the average of their three busiest sales settlement periods, plus 100%. The calculation provides room for growth so most agents will not reach the threshold, says Iata.