
Tips to Avoid Debit Memos
Churning
o Definition: Repeatedly booking and canceling segments within the same or
multiple PNR
o Tip: Avoid unnecessary bookings and cancellations. Only book flights when you are confident that your client will travel, also advise your client about the limit of changes of each airline, being the most common 3 counts allowed.
Duplicate Bookings
o Definition: Booking the same flight segment multiple times for the same passenger. Duplicate bookings are more than one booking with the same customer name, same departure and arrival airports. This applies even if the segments are booked in different PNRs, through different booking systems and/or different booking classes.
o Tip: Carefully review all bookings before confirming to ensure no duplicates exist.
Inactive Segments / Unproductive Segments
o Definition: Flight segments within the CRS/GDS PNR with UN, NO, UC, DL, DS, HX, IX, RM, US, UU, CN, WN or WK codes. Travel agents must remove inactive segments from their CRS/GDS PNR at least 48 or 24 hours before the scheduled departure of each flight segment depending on each airline.
o Tip: Carefully check all of your reservations everyday and when see any of these codes fix it right away.
Fraudulent/Fictitious Bookings/Fictitious Name
o Definition: Creating bookings with false passenger information or for travel that will not occur. Examples of such reservations include reservations with PNR names such as SCHEDULE/A/B/C, MOUSE/MICKEY, SMITH/A/B/C and TEST/AIRLINE.
In addition, PNRs should not be created for training and testing purposes. The training mode provided by the GDS/CRS should be used when testing a feature or training sta.
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It is prohibited to create segments and/or PNRs to: hold or block seats in view of expected demands circumvent fare rules
request and/or sell airline space other than at the specific request of a
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customer or to satisfy GDS/CRS productivity agreements
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o Tip: Always verify passenger information and ensure all bookings are legitimate. When possible verify information with the client’s document/ID/passport.
No-Shows
o Definition: Passengers who do not show up for their booked flights without proper notification or when a travel agent fails to cancel a reservation (ticketed or non- ticketed)
o Tip: Ensure passengers are aware of cancellation policies and encourage them to notify the airline in advance if they cannot travel.
Married Segments / Point of Commence / O&D
o Definition: Booking segments on different airlines that cannot be combined or
ticketed together.
Any manipulation and/or alteration that bypasses the matched segment and point of origin (POC) logic will be subject to PNR cancellation (when ticketless) or to the imposition of an ADM/invoice per passenger and per broken O&D segment. The use of previous and/or subsequent segments (matched or not) to modify the O&D and POC logic is not permitted. This prohibition includes the misuse of other airlines’ itineraries. In case a travel agency issues a ticket based on a PNR with a manipulated segment an ADM will be mentioned.
Main points considered as bad practices by IB:
- **GDS change** (book in 1A, continue in 1S booking and/or issuing)
- **Manipulation of married segments** (book LHRMADVLC married, break the link, issue LHRMAD)
- **O&D manipulation** (book SCL-MAD with LA + MAD-LHR with IB, not married, cancel SCL-MAD)
- **Manipulation of the Point of Beginning (POC)** (book the arrival flight before the departure flight)
IB evaluates under POC O&D:
- **POC**: Availability for LIM-MAD may be different depending on whether it is the
departure or arrival flight.
- **O&D**: Availability for LIM-MAD may be different between LIM-MAD-BCN, LIM-MAD and LIM-MAD-ORY.
o Tip: Carefully review flight itineraries and ensure all segments can be ticketed properly.
Commission Violations
o Definition: Taking commission when a ticket is no commissionable or overclaiming.
Debit memos might be due:
- Tickets Non-Commissionables: no commission is payable. Usually a debit memo is raised to recall the commission taken
- Blackout Dates: Periods when certain fares or travel dates are not eligible for commission
- Overclaimed Commission: Usually a debit memo is raised to recall the commission taken in excess. Example the route JFK-EZE on AA class H is commissionable at 5%, it was taken 8% commission. An ADM will be raised to recall 3% extra.
o Tip: Carefully review fare rules and ensure you are aware of any commission restrictions. Always check the contract with the Airlines before issuing a ticket and claiming commission for the most updated information about commission.
Refund Violations
o Definition: Some bookings are non-refundable when fare conditions do not permit a refund, other are refundable but require a penalty to be paid to the airlines, or requires a waiver from the airline to be accepted in cases of medical conditions for example. Incorrectly applying or failing to apply taxes when issuing refunds could also lead to a debit memo.
Some taxes that are non refundable: PE, AR, TT, N8, ED, ZP, XF, YR and YQ.
o Tip: Carefully review refund rules and ensure all taxes are handled correctly.
Exchange Violations
Definition: A change made to a booked ticket for various reasons such as change or fix of name, change of itinerary, change of date of travel, etc. Some of the reason that could raise a debit memo when exchanging a ticket is changing the passenger’s name without a waiver from the airline, under collecting fare or taxes, reissue fee not collected, penalty fee not applied.
Tip: Carefully review exchange rules and ensure all taxes are handled correctly.
Chargebacks
o Definition: A chargeback is a process where a customer disputes a transaction with their bank or credit card company and requests a refund.
This is a very serious malpractice that could cause the definitive rupture of contract with the airline and so it’s a very serious and urgent type of debit memo.
Companion / Group Fee Violations
o Definition: A violation occurs when an agent books a companion fare that requires two to nine passengers to travel together, but subsequently splits the PNR, allowing only one passenger to fly on the discounted fare.
o Tip: Never apply discounted fares to non-qualifying passengers. Only apply negotiated or discounted fares exactly as instructed. When in doubt, ask our team for guidance.