BSP Account Full Tutorial (Travel Agent Guide)
The International Air Transport Association created the Billing and Settlement Plan (BSP) to simplify financial transactions between airlines and travel agencies.
Instead of paying each airline separately, travel agents sell tickets and pay all airlines through one system called BSP.
1. What is BSP?
BSP (Billing and Settlement Plan) is a payment system that manages money between:
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Travel agencies
-
Airlines
-
Financial institutions
Travel agencies report all ticket sales to BSP, and BSP distributes the payments to airlines.
Example airlines using BSP:
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Emirates
-
Qatar Airways
-
Air India
2. How BSP Works
The BSP system works in three main steps.
Step 1 – Travel Agent Sells Ticket
Using systems like Amadeus Global Distribution System, the agent books and issues a ticket.
Example route:
From Bengaluru to Dubai.
Step 2 – Ticket Sale is Reported to BSP
Every ticket issued by the agent is automatically recorded in the BSP system.
The system records:
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Ticket number
-
Airline code
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Passenger details
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Fare amount
Step 3 – Agent Pays BSP
Instead of paying airlines individually, the travel agency pays one combined payment to BSP.
BSP then distributes the money to each airline.
3. Requirements to Get BSP Access
To access BSP, your agency must first be accredited by the International Air Transport Association.
Requirements include:
✔ Registered travel agency
✔ Valid office location
✔ Financial stability
✔ Bank account for settlement
✔ IATA Numeric Code
Without IATA accreditation, you cannot use BSP directly.
4. BSP Account Registration Process
Step 1 – Apply for IATA Accreditation
First apply through the IATA Travel Agency Accreditation program.
Once approved, you receive:
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IATA Numeric Code
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Access to BSP system
Step 2 – Register for BSP Link
After approval, create an account on BSP Link.
BSP Link is the online platform used by agents to manage BSP transactions.
Functions include:
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View ticket sales
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Check airline invoices
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Submit disputes
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Track financial reports
5. Understanding BSP Reporting Periods
BSP works on reporting cycles.
Example structure:
| Week | Activity |
|---|---|
| Week 1 | Ticket sales recorded |
| Week 2 | BSP invoice generated |
| Week 3 | Agent payment due |
Agents must pay BSP before the payment deadline.
6. BSP Payment Methods
Travel agents usually pay BSP through:
Bank Transfer
Payment transferred to BSP clearing bank.
Direct Debit
BSP automatically deducts payment from the agency bank account.
7. BSP Link Features
BSP Link allows travel agents to manage many tasks.
Main Functions
✔ View ticket sales reports
✔ Monitor refunds
✔ View airline debit memos (ADM)
✔ Submit travel disputes
✔ Track payment history
8. BSP Reports for Travel Agents
Important BSP reports include:
Billing Analysis Report
Shows:
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Ticket sales summary
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Airline breakdown
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Total payment amount
Agent Credit Report
Shows credit status and outstanding payments.
9. Airline Debit Memo (ADM)
Sometimes airlines issue an ADM (Airline Debit Memo).
Reasons include:
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Incorrect fare
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Ticketing mistake
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Refund errors
Agents must either:
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Pay the ADM
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Dispute it through BSP Link
10. Refund Processing in BSP
If a passenger cancels a ticket, the agent can process a refund.
Steps:
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Submit refund request
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Airline approves refund
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BSP adjusts the financial records
The refunded amount appears in the next BSP billing report.
11. Advantages of BSP
Using BSP offers many benefits for travel agencies.
Benefits
✔ Simplified airline payments
✔ One payment for multiple airlines
✔ Automated financial reporting
✔ Faster settlement process
This system is used worldwide by thousands of travel agencies.
12. Common BSP Errors
Travel agents may encounter some issues.
Late Payment
If the agency misses the payment deadline:
-
BSP may suspend ticketing access.
Ticketing Errors
Incorrect fare or taxes can lead to Airline Debit Memos (ADM).
13. BSP vs Non-IATA Agents
Some agencies do not have IATA accreditation.
These agencies must work through:
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Ticket consolidators
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Larger IATA agencies
They sell tickets but do not access BSP directly.
Travel Agency Accounting Guide (BSP + Ticketing)
Travel agency accounting is different from normal business accounting because agents sell airline tickets on behalf of airlines. Most payments are processed through the Billing and Settlement Plan (BSP) created by the International Air Transport Association.
Understanding BSP accounting helps agencies track ticket sales, airline payments, commissions, and refunds.
1. How Travel Agency Revenue Works
Travel agencies earn money from several sources.
Main Income Sources
✔ Airline commission
✔ Service fees
✔ Tour packages
✔ Hotel bookings
✔ Visa processing charges
For example, an agent might sell a ticket on Emirates or Air India and charge a service fee.
2. Airline Ticket Accounting Structure
A flight ticket price includes several parts.
Example ticket:
| Component | Amount |
|---|---|
| Base fare | ₹15,000 |
| Airline taxes | ₹4,000 |
| Total ticket price | ₹19,000 |
The travel agent collects ₹19,000 from the customer.
However, most of this money belongs to the airline.
3. Travel Agent Commission
Some airlines pay commission to travel agents.
Example:
Ticket price = ₹19,000
Commission = 3%
Agent earns:
₹570
Commission rates vary depending on the airline.
Example airlines:
Qatar Airways
Singapore Airlines
4. Service Fee Model
Many travel agencies now charge service fees instead of relying on airline commission.
Example:
Ticket price = ₹19,000
Service fee = ₹500
Customer pays:
₹19,500
The ₹500 belongs directly to the travel agency.
5. BSP Accounting Workflow
Travel agencies using International Air Transport Association BSP follow a specific accounting process.
Step 1 – Issue Ticket
Ticket issued using systems like:
Amadeus Global Distribution System
Ticket data automatically goes to BSP.
Step 2 – BSP Records the Sale
BSP records:
Ticket number
Airline
Fare amount
Taxes
Example airline route:
From Bengaluru to Dubai.
Step 3 – BSP Invoice Generated
Every week or reporting cycle, BSP creates an invoice showing:
Total ticket sales
Airline payments due
Commission adjustments
Step 4 – Travel Agency Pays BSP
Instead of paying each airline separately, the agency pays one combined payment to BSP.
BSP distributes the money to airlines.
6. BSP Reports Explained
Travel agents regularly check BSP reports to track finances.
Billing Analysis Report
Shows:
Total tickets sold
Total airline payments
Commission amounts
Agent Credit Report
Shows the agency's credit limit and outstanding payments.
Refund Report
Tracks all ticket refunds processed during the BSP cycle.
7. Airline Debit Memo (ADM)
Sometimes airlines send ADM (Airline Debit Memo) through BSP.
Reasons:
❌ Wrong fare calculation
❌ Ticketing mistake
❌ Incorrect tax
Example airlines issuing ADMs:
Emirates
Lufthansa
Agents must either pay the ADM or dispute it in BSP Link.
8. Refund Accounting
If a passenger cancels a ticket:
Agent processes refund
Airline approves refund
BSP adjusts the financial record
Refund amount appears in the next BSP report.
9. Travel Agency Expense Tracking
Agencies also track business expenses.
Common Expenses
Office rent
Staff salaries
Internet and software
Marketing costs
Travel booking system fees
Good accounting ensures the agency stays profitable.
10. Accounting Software for Travel Agencies
Many agencies use accounting software to manage finances.
Popular options:
Tally
QuickBooks
Zoho Books
These tools help track:
Ticket sales
BSP payments
Customer invoices
Business profits
11. Monthly Travel Agency Financial Report
A typical agency monthly report includes:
| Category | Amount |
|---|---|
| Ticket sales | ₹8,00,000 |
| Service fees | ₹50,000 |
| Hotel bookings | ₹1,20,000 |
| Expenses | ₹1,00,000 |
| Net profit | ₹70,000 |
Tracking financial data helps improve business growth.
12. Tips for Travel Agency Accounting
✔ Always reconcile BSP reports weekly
✔ Keep separate accounts for ticket sales and service fees
✔ Monitor ADMs regularly
✔ Maintain accurate records for tax filing
Proper accounting helps avoid financial disputes with airlines.
