Auditing Module for Travel Transaction Pricing Compliance
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Solution Overview
Problem
The airline industry faces significant management costs due to the need for auditing transactions to ensure compliance with pricing rules, leading to acceptance of small errors and potential losses in revenue, as generating Agency Debit Memos (ADMs) for discrepancies is costly and can result in indirect sellers pricing tickets below the correct price without incurring penalties.
Innovation Solution
A system and method that includes an auditing module within a Global Distribution System (GDS) to verify if the quoted price for airline tickets matches the correct price based on carrier-specific business rules, utilizing historical data to determine actions such as rejecting or allowing transactions, issuing warnings, or setting flags for ADMs, thereby reducing errors and discrepancies.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If carriers issue Agency Debit Memos (ADMs) to recover pricing discrepancies, then revenue loss is reduced, but management costs increase significantly
Solution Approach 1:
The system performs preliminary auditing of transactions against pricing rules before finalizing the sale. By checking compliance in advance and identifying discrepancies early, the system can prevent revenue loss without requiring costly post-transaction ADM issuance. The auditing module evaluates each transaction against carrier pricing rules and historical data before the transaction is completed, allowing proactive correction rather than reactive recovery.
Solution Approach 2:
The auditing system enables indirect sellers to self-correct pricing errors by providing real-time feedback on compliance issues. The system automatically identifies pricing discrepancies and guides sellers through corrections, reducing the need for carrier intervention and ADM issuance. This self-service approach allows sellers to maintain compliance independently, reducing overall management costs for both carriers and sellers.
2Device complexity
If carriers accept small pricing errors to avoid ADM issuance costs, then management costs are reduced, but revenue loss increases
Solution Approach 1:
The system implements continuous feedback loops where transaction data is automatically audited against pricing rules and historical compliance patterns. The auditing module provides real-time feedback to indirect sellers about pricing compliance, enabling them to correct errors immediately. This feedback mechanism allows the system to maintain high compliance rates without costly ADM issuance, as sellers can self-correct based on system feedback rather than waiting for penalty issuance.
Solution Approach 2:
The system replaces the mechanical process of manual ADM issuance and recovery with an automated electronic auditing system. The auditing module automatically detects, flags, and tracks pricing discrepancies, replacing the need for manual review and ADM generation. This substitution of automated electronic auditing for manual ADM processes reduces management costs while improving compliance detection accuracy and speed.
3Ease of operation
If indirect sellers price tickets below correct price to avoid penalties, then ease of operation is improved, but reliability of pricing compliance deteriorates
Solution Approach 1:
The system performs preliminary compliance checking before transactions are finalized, allowing indirect sellers to adjust pricing within compliance boundaries before sale. By evaluating pricing rules in advance and providing guidance on compliant pricing options, the system enables sellers to operate with flexibility while maintaining reliability. Sellers can make pricing decisions with confidence knowing the system has already validated compliance, eliminating the need to deliberately underprice to avoid penalties.
Data Source
AI summary
Methods, systems, and computer program products for auditing of transactions involving the sale of travel services by an indirect seller. An auditing module receives data defining a transaction proposed by the indirect seller. The module compares a quoted price for the transaction to a correct price for the transaction to determine if there is a pricing discrepancy. If a discrepancy exists, the module classifies the transaction and searches a business rules database maintained by a travel service provider for business rules relevant to the classification. The audit module further queries a historical sales deviation database to retrieve seller history data, and selects the relevant business rule having the best match to the seller history data. The audit module then determines whether to allow or block the transaction, issue a warning, or suggest an Agency Debit Memo based on an action defined by the business rule having the best match.