Agency Debit Memos (ADMs), generated when issues arise with airline transactions, have been a growing issue for travel agents in today’s ever-changing travel industry.
According to a recent study from IATA, about 80 percent of total ADMs are driven by 20 percent of countries, and 80 percent of total ADMs are issued by only 15 percent of the airlines worldwide. Considering there were over $650M paid out in ADMs in 2015, it’s no wonder agencies are keen to reduce these penalties!
By working closely with travel agencies to understand this issue, both the Sabre Global Consulting and Global Operations teams have gained valuable information on ADMs over the years.
One of the travel agencies we worked with is Virtuoso – a leading network of expert luxury travel advisors. Often yielding complex travel itineraries for their customers, ADMs have historically been an issue for Virtuoso.
Virtuoso shared two years of ADM data for analysis, and worked closely with Sabre Consultants. As a result of the engagement, Sabre were able to provide deep insights in to Virtuoso ADMs and provide a set of recommendations – including the optimization of Sabre Automated Exchanges.
Based on Sabre recommendations, Virtuoso’s bottom line has improved significantly:
- ADMs issued on Sabre tickets decreased by 64%
- The value of these ADMs reduced by 57%
Steve Wooster, Director of Services & Air Operations at Virtuoso is extremely pleased with these results:
“The insights provided by Sabre analysts have proven to be a substantial benefit to our business. Commission quoting accuracy is now 90% and fare/commission quoting time has decreased from 15-45 minutes to a matter of seconds”.
Does your agency need to reduce ADMs too? Read the full Virtuoso case study here.