New tool includes debit memo reason standardization
ARLINGTON, Va. – Jan. 04, 2017 – The Airlines Reporting Corp. (ARC), the premier driver of air travel intelligence in the travel industry, today announced the launch of Memo Analyzer version 3.0–a business intelligence tool that provides insight into debit and credit memo performance. The new iteration of the tool includes the first phase of ARC’s debit memo reason code standardization effort. Today’s announcement marks the culmination of more than two years of work by the company-sponsored Debit Memo Working Group (DMWG).
“Travel Leaders Group has eagerly anticipated the implementation for this next phase of Memo Analyzer to help us better understand more quickly the reasons why a debit memo was issued,” said Peter Vlitas, senior vice president of airline relations for Travel Leaders Group. “Thanks to the leadership of Nexion Vice President Robbi Hamida, who worked together with our industry partners in ARC’s Debit Memo Working Group, we were able to come together and find agreement on approaches to reduce memos using standard codes. All in the group deserve much credit, especially Delta Air Lines, who led the effort to map the standard codes.”
ARC previously reported the standard reason codes and definitions in March. The codes created by the DMWG include commissions, credit card chargebacks, fares, taxes, refunds, exchanges, fees, booking and miscellaneous. Currently every carrier uses their own reason codes for debit memos, making it difficult to properly categorize memos and ultimately identify root causes. Nine carriers have mapped their debit memos to the new reason codes and will be part of this release. Additional carriers will be mapped throughout 2017.
“The Delta team has been an integral part of the development of ARC’s Memo Analyzer tool which brings a standard view of debit memo definitions across the industry for the first time,” said Michael Owen, Delta’s managing director-sales development. “This new tool will allow us to work with our agency partners using the same data set, helping us reduce the number of debit memos generated.”
“The memo reason standards, which will be utilized by both ARC and IATA, will provide the industry with a better understanding of why debit memos are issued and focus our limited resources on reducing memos,” said ARC Revenue Recovery Services Manager Sarah Sager. “ARC listened to its customers who utilize Memo Analyzer, which allowed us to validate and improve the memo reason standards for both the product’s users and the industry as a whole.
Future phases of ARC’s debit memo reason standardization effort include mapping additional carriers into Memo Analyzer and the implementation of the new codes into Memo Manager–a tool that allows ARC participating carriers and travel professionals to electronically process and settle memos.
The Airlines Reporting Corporation (ARC) is the premier driver of air travel intelligence and commerce in the travel industry with leading business solutions, travel agency accreditation services, process and financial management tools and high-quality data. In 2015, ARC settled $88.3 billion worth of carrier ticket transactions for more than 9,400 travel agencies with 13,000 points of sale. Established in 1984, ARC is headquartered in Arlington, Virginia, with offices in Louisville, Kentucky, Tampa, Florida and San Juan, Puerto Rico. For more information, please visit www.arccorp.com and www.twitter.com/ARCtalk.