NP-SD-08 · Commission & Incentive Management

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Process Flow Diagram (BPMN)

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L4 Process Steps

Step	Step Name	Role / Swim Lane	System	Input	Output	KPI	Dec?	Exc?
Phase 1 1.1	Define commission tier structure by agency segment	Commercial Distribution Manager	Tableau / Power BI	Historical agency booking data, competitive intelligence, budget guidance	Draft commission tier matrix segmented by agency type and channel	Commission cost as % of total distribution revenue ≤3.5%	N	N
1.2	Model financial impact of proposed commission rates	Revenue Analytics Manager	AWS Redshift	Draft commission tier matrix, O&D revenue data from Amadeus NRM	Financial impact model with revenue-at-risk analysis and break-even volumes	Commission ROI ≥4:1 incremental revenue per dollar paid	Y	N
1.3	File commission schedules in ATPCO CAT 35	Fares & Distribution Analyst	ATPCO	Approved commission tier matrix from budget sign-off	Published ATPCO CAT 35 commission schedules distributed to all GDS platforms	Filing cycle completed ≤2 business days from policy approval; zero GDS distribution failures	N	Y
Phase 2 2.1	Validate IATA/ARC accreditation for new agency	Agency Accounts Coordinator	IATA BSP Link	New agency onboarding request with IATA/ARC number	Accreditation verification record; agency status confirmed as current and bonded	Onboarding validation completed within 3 business days of request submission	Y	Y
2.2	Configure commission parameters in GDS platforms	GDS Channel Manager	Sabre GDS	Validated accreditation record, approved commission tier assignment	Agency commission profile active and consistent across Sabre, Travelport, and Amadeus GDS	Configuration accuracy 100%; zero commission miscalculation incidents per quarter across all three GDS platforms	N	Y
2.3	Enroll agency in NDC incentive programme	NDC Channel Development Manager	NDC API Gateway	Agency NDC API certification status, signed NDC incentive agreement	Agency NDC incentive profile active; incremental booking targets and incentive rates configured	NDC share of enrolled agency bookings ≥15% within 90 days of enrolment	Y	Y
Phase 3 3.1	Extract historical agency performance data	Revenue Analytics Manager	AWS Redshift	24-month GDS MIDT data, NDC booking events, agency tier classification history	Agency performance scorecards: revenue contribution, yield, load factor uplift by route	Data extraction latency ≤4 hours for full 24-month dataset; completeness ≥99% of expected agency records	N	N
3.2	Set incentive thresholds and tier boundaries	Commercial Distribution Manager	Tableau / Power BI	Agency performance scorecards, annual incentive budget allocation from Finance	Incentive programme terms sheet: booking thresholds, earning rates, measurement period, eligible routes	Target incentive budget utilisation ≥85% by end of programme period; zero over-budget accruals	N	N
3.3	Approve override rates for strategic partner accounts	VP Sales & Distribution	SAP S/4HANA Finance (FI/CO)	Incentive terms sheet, strategic partner account plans, revenue policy guardrail limits	Signed incentive agreement with approved override commission rates; uploaded to SAP contract management	Override approval cycle ≤5 business days of proposal submission; 100% of overrides documented with ROI justification	Y	Y
Phase 4 4.1	Ingest daily booking volumes from GDS and NDC	Distribution Data Analyst	AWS Redshift	Sabre MIDT, Amadeus MIDT, Travelport MIDT feeds, NDC API booking event stream	Daily agency booking volume dashboard; commission accrual staging table updated	MIDT ingestion completeness ≥98% of expected records per day; ingestion pipeline latency ≤6 hours	N	Y
4.2	Calculate commission accruals against tier thresholds	Distribution Data Analyst	SAP S/4HANA Finance (FI/CO)	Daily booking volume data, approved tier thresholds and override rate agreements	Commission accrual journal entries posted to SAP GL; agency tier status report	Accrual calculation cycle completed within 2 hours of MIDT ingestion; accrual variance to final settlement ≤1%	Y	Y
4.3	Flag agencies approaching performance thresholds	Agency Account Manager	Tableau / Power BI	Daily accrual report, tier threshold proximity rules (within 10% of next tier)	Account management action list; proactive outreach triggers for agents within reach of next incentive tier	≥90% of threshold-proximity alerts actioned within 48 hours; conversion rate of nudged agencies reaching next tier ≥35%	N	N
Phase 5 5.1	Generate commission billing statement via BSP/ARC	Settlement & Payments Analyst	IATA BSP Link	Final monthly accrual report, confirmed flown-only booking data after cancellation netting	Commission billing statement; BSP debit memo or ARC IAR report	BSP/ARC billing statement issued within 5 business days of month-end close; billing accuracy vs accruals within ±2% tolerance	Y	Y
5.2	Post commission payables to SAP AP	Accounts Payable Accountant	SAP S/4HANA Finance (AP)	Validated BSP/ARC billing statement reconciled to accruals	Posted AP invoice; payment run scheduled in SAP; GL entries aligned to accrual period	AP posting completed within 2 business days of billing statement validation; on-time payment rate ≥98%	N	Y
5.3	Process and resolve agency dispute claims	Agency Accounts Coordinator	IATA BSP Link	Agency dispute submission referencing original booking data and billing statement line items	Dispute resolution decision; adjusted credit note issued via BSP Link if claim upheld	Dispute resolution cycle ≤15 business days; dispute rate ≤2% of total monthly invoices by value	Y	Y
Phase 6 6.1	Analyse commission ROI by channel and agency segment	Revenue Analytics Manager	AWS Redshift	Full-year commission payments from SAP, channel revenue data from Amadeus NRM, per-booking cost by channel	Commission effectiveness report with channel ROI ranking, cost-per-booking comparison GDS vs NDC, and under/over-performing agency list	Incremental revenue per £1 commission paid ≥4:1; NDC cost-per-booking ≤60% of equivalent GDS cost	N	N
6.2	Revise commission tier structure for next programme cycle	VP Sales & Distribution	ATPCO	Commission effectiveness report, Finance budget guidance for next period, Legal sign-off on rate changes	Revised commission tier matrix approved; ATPCO CAT 35 filing initiated for next programme period	Policy revision cycle completed ≤30 days before new programme period start; zero ATPCO filing errors on submission	Y	N

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Process Attributes

Identification

Process IDNP-SD-08

L1 DomainNetwork Planning & Scheduling

L2 ProcessSales & Distribution

L3 NameCommission & Incentive Management

L4 Steps17 across 6 phases

Decision Gates8 (all with iteration loops)

Exceptions10 documented

Swim Lanes (Roles)

Commercial Distribution Manager

Revenue Analytics Manager

Fares & Distribution Analyst

Agency Accounts Coordinator

GDS Channel Manager

NDC Channel Development Manager

VP Sales & Distribution

Distribution Data Analyst

Agency Account Manager

Settlement & Payments Analyst

Accounts Payable Accountant

Systems & Tools

Tableau / Power BIAWS RedshiftATPCOIATA BSP LinkSabre GDSNDC API GatewaySAP S/4HANA Finance (FI/CO)SAP S/4HANA Finance (AP)

Key Performance Indicators

Define commission tier structure by agency segmentCommission cost as % of total distribution revenue ≤3.5%

Model financial impact of proposed commission ratesCommission ROI ≥4:1 incremental revenue per dollar paid

File commission schedules in ATPCO CAT 35Filing cycle completed ≤2 business days from policy approval; zero GDS distribution failures

Validate IATA/ARC accreditation for new agencyOnboarding validation completed within 3 business days of request submission

Configure commission parameters in GDS platformsConfiguration accuracy 100%; zero commission miscalculation incidents per quarter across all three GDS platforms

Enroll agency in NDC incentive programmeNDC share of enrolled agency bookings ≥15% within 90 days of enrolment

Extract historical agency performance dataData extraction latency ≤4 hours for full 24-month dataset; completeness ≥99% of expected agency records

Set incentive thresholds and tier boundariesTarget incentive budget utilisation ≥85% by end of programme period; zero over-budget accruals

Airline-Specific Risks & Pain Points

Legacy GDS commission structures limit dynamic per-segment tier adjustments; IATA Resolution 818 constrains net-rate transparency, reducing ability to differentiate incentive rates by booking window or route

Incomplete NDC booking attribution in data lake distorts channel profitability calculations — NDC and GDS bookings not tagged consistently in Redshift, leading to underestimation of NDC cost savings

ATPCO CAT 35 supports net fares rather than explicit commission rates, requiring workaround constructions that reduce transparency for agency partners and complicate audits under IATA Resolution 850

IATA accreditation lapses and bond failures are not automatically propagated to GDS agency profiles — risk of continuing commission payments to deaccredited agencies discovered only at BSP settlement

Managing parallel commission configurations across Sabre, Travelport, and Amadeus requires manual triple-entry with no centralised commission API — errors typically discovered only at monthly BSP/ARC settlement, creating retroactive adjustment workload

Many TMCs and leisure agencies lack technical capability for full NDC API integration; incentive uptake is constrained by agency IT readiness rather than demand, reducing the effectiveness of shift-to-NDC distribution strategy

Inputs / Outputs

Primary InputHistorical agency booking data, competitive intelligence, budget guidance

Primary OutputRevised commission tier matrix approved; ATPCO CAT 35 filing initiated for next programme period

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