Commission and Margin

Owned by Vanni Sanvincenti
Last updated: 11 Jul 2023 by Jakub Bielecki (Deactivated)
2 min read

Commission

The Airline may provide information relating to the commission that will be applied to the sale of an Offer.

The Airline may provide a commission percentage or set value within a Commission structure, not both.

An Airline may provide more than one commission structure with different Commission Codes, for example the Airline may send a ‘standard’ or ‘supplemental’ commission.

Commission Response Elements

Airline Advises a Set Value Commission

An airline may advise the Seller that an Item has a set commission value.

<iata:Commission> <iata:Amount CurCode="CHF">1.00</iata:Amount> </iata:Commission>

Airline Advises a Percentage Commission

An Airline may advise the Seller that an Item has a set Commission percentage. If a percentage is provided, the airline shall also provide the amount to which the percentage is applied to.

<iata:Commission> <iata:Percentage>1.00</iata:Percentage> <iata:PercentageAppliedToAmount CurCode="CHF">1.0</iata:PercentageAppliedToAmount> </iata:Commission>

Airline Advises Commission Type

An airline may advise the Seller the type of commission that is being applied to the Offer item using the CommissionCode element

<iata:Commission> <iata:Amount CurCode="CHF">1.00</iata:Amount> <iata:CommissionCode>STANDARD</iata:CommissionCode> </iata:Commission>

Commission Code

Note there is no codeset for this element.

04. Airline Advises Multiple Commission Types

An airline may send multiple commissions which would be applied.

Margin

A Seller may apply a margin to an Airline Offer before quoting a price to the Customer.

This document describes the scenario in which the Seller is the Merchant of Record and the Airline does not set the amount that is ultimately quoted to the Customer.

Out of Scope

  • Airline as Merchant of Record

  • Airline sets the amount that is quoted to the Customer

Adding a Margin to an Offer

The process for the Seller to apply a margin to an Offer is possible by following the below process.

  1. The Seller sends a Shopping Request to the Airline

  2. The Airline responds with Offers and the price of each Offer, including applicable taxes, fees & charges

  3. The Seller may choose to add an additional amount (margin) to the Airline Offer and quote a combined Airline Offer Price + Margin to the Customer

  4. If the Seller wishes to proceed with the Order, the Seller asks the Airline to create an Order for the amount quoted in the Airline Offer (less the margin),

  5. The Seller collects payment from the Customer. The Seller can bill the customer for Airline Price + Taxes, Fees & Charges + Margin in one single transaction

  6. The Airline creates an Order for the amount agreed between Seller and Airline, including any applicable taxes, fees and charges.

  7. The Airline’s Order will not contain any record of the Seller’s margin

  8. The Airline can mask the price so that it is not visible to the customer and can indicate to the Seller that the price is masked, using the Price Mask Indicator

  9. The Seller pays the Airline the agreed amount, the Airline Offer Price, via BSP/ARC