This is the fifth blog article in our series about the airline offer and order life cycle. Modern airline retailing requires transforming to a world of offers and orders where the right offer is delivered to the right customer at the right time, and the resulting order is managed as part of a seamless traveler experience.
It’s the last and final stage of the airline offer and order life cycle, and, likely the most complex and misunderstood. Order servicing and settlement occur after an airline has created, distributed, and presented an offer to a customer, and after a purchase has been made. The offer has been converted into an order, which must now be effectively managed throughout the remainder of the process, including itinerary changes, revenue accounting, and financial reconciliation among the airlines and their partners.
In this installment, we’ll delve into the critical need for data, automation, and interoperable solutions that help airlines succeed and deliver seamless experiences in today’s modern airline retailing landscape.
What does servicing and settling an airline order mean?
Once a traveler completes a booking, two critical processes must follow to ensure the experience—and the revenue—are managed correctly:
- Servicing: Support any changes to the order, including exchanges, cancellations, and refunds.
- Settlement: Reconcile the money across all parties involved in fulfilling the order—tax authorities, partners, payment processors, and more.
Both are essential. And both require accurate data, automation, and coordination behind the scenes.
Getting it right for a seamless post-purchase experience—for both travelers and partners
Today, many servicing processes to handle changes in a customer’s journey are still manual, creating delays, errors, and frustration during what can already be a stressful time for travelers. Fortunately, this is changing through advancements in technology, data, and access.
Modern servicing must be automated, flexible, and informed by real-time, contextual data—empowering travelers and agents to make changes wherever the customer chooses to interact, whether through self-service tools, mobile apps, call centers, or airport counters. Static records or legacy rules are no longer enough to deliver a traveler-centric process that maintains customer trust and satisfaction.
The need for a seamless customer experience is only part of the story. Throughout the life of an order, including any changes or cancellations that may occur, airlines must also accurately account for and settle revenue. The revenue accounting process includes reconciling recognizing if/when the trip has taken place (called “lift”), taxes, partner allocations and commissions, and any adjustments due to disruptions or refunds.
It’s no surprise that in the world of modern retailing, airlines are moving away from each party having to calculate and adjust settlement figures after the fact to instead use real-time, data-driven processes to get it right the first time – including tax data. In a world where automation and interoperability are the norm, manual processes no longer make sense.
How ATPCO supports servicing and settlement
ATPCO plays a central role in powering this post-purchase ecosystem—helping airlines and partners bridge the gap between offer creation and revenue reconciliation. Our service and settlement solutions are designed to streamline servicing processes and eliminate settlement disputes.
Here’s how we help:
- Capture and distribute total price data: We provide all essential data for automated servicing—ensuring the policies, fees, and calculations are available at every touchpoint.
- Provide essential data for revenue accounting: We deliver and post standardized sales and usage data directly into pricing and accounting systems, ensuring traceability through changes, exchanges, and refunds.
- Serve as a single source of tax information: Our tax data combines IATA-sourced rules and amounts with airline-specific exceptions, giving you a complete view. We’re also co-developing the next-generation Taxes, Fees, and Charges system with IATA to support the future of airline retailing.
Ready to go deeper? Join our upcoming webinar
The customer journey doesn’t end with a purchase—and neither does your airline’s responsibility to support and settle every order efficiently. With the right data and systems in place, servicing and settlement don’t have to be the painful parts of the life cycle—they can be the smoothest.
In our upcoming webinar on 12 August, we’ll explore how automation, data, and industry collaboration are transforming the final stage of the offer and order life cycle. You’ll hear how to streamline servicing and settlement—and how ATPCO is building solutions to support your strategy.
Watch the order servicing and settlement webinar
