Travel Agency
Reconciliation for travel agencies, TMCs, and OTA affiliates
Reconciliation in Travel Agency
Travel agencies and travel management companies (TMCs) earn revenue through airline commissions via IATA BSP, hotel commissions from aggregators, and service fees from corporate clients. BSP (Billing Settlement Plan) settlements are the industry standard — airlines pay commissions through the IATA BSP cycle, netting off debit memos, ADMs (agency debit memos), and clawbacks in fortnightly settlements. TMCs additionally reconcile online booking tool (OBT) platforms, hotel aggregator payouts, and TDS deductions under Section 194H on all commission income. A mid-size TMC processing ₹50 Cr in travel spend per year handles 15,000–40,000 booking transactions annually.
Where reconciliation breaks down
These are the structural problems that generic tools cannot solve for Travel Agency businesses.
IATA BSP settlement reconciliation
BSP settlements aggregate commission earnings across all airlines in a fortnightly cycle, net of ADMs (agency debit memos), ADCs (agency credit memos), and refund charges. Reconciling the net BSP remittance against individual booking records — and validating ADMs — requires BSP file parsing and booking-level matching.
TDS on commission income (Section 194H)
Airlines and hotel aggregators deduct TDS at 5% under Section 194H on commission payments. Reconciling TDS deductions across multiple principals, matching against Form 26AS, and tracking for credit requires a per-principal TDS register that most agency accounting systems lack.
OTA affiliate and sub-agent settlement
Agencies earning commissions through OTA affiliate programmes (MakeMyTrip, Yatra, EaseMyTrip) receive fortnightly or monthly settlements with commission rates that vary by booking type and quarter. Settlement formats differ across OTAs and change periodically.
Corporate client billing vs booking actuals
TMCs bill corporate clients on an agreed fee-per-booking or management-fee model, with the travel cost passed through at net rates. Reconciling client billing against actual booking costs — and verifying that mark-ups and fees are correctly applied — requires transaction-level billing verification.
How TransactIG solves this
TransactIG is built by Terra Insight with travel agency-specific configuration, not generic matching logic.
BSP settlement file matching
TransactIG ingests IATA BSP settlement files, parses ADMs and ACMs, and matches net commission against individual bookings in the GDS or front-office system — flagging disputed ADMs automatically.
Section 194H TDS tracking
Commission TDS from airlines, hotels, and OTAs is tracked per principal by quarter, reconciled against Form 26AS, and prepared for TDS credit claiming — across all commission sources in one register.
Corporate client billing verification
Booking-level billing accuracy is verified by matching the billed amount against the actual booking cost plus agreed fee, with exceptions flagged for correction before invoice issuance.
Reconciliation patterns
Configuration presets
No custom development
These presets are included with every Travel Agency deployment of TransactIG. Go live in 2–4 weeks.
Frequently asked questions
How does TransactIG handle IATA ADMs that we dispute?
ADMs are classified as a named variance type in the BSP pattern. Disputed ADMs are flagged with the booking reference and ADM amount, and tracked until resolved — either matched against the airline credit or written off after a configurable period.
We earn commissions from 15 different airlines. Can TransactIG track TDS per airline?
Yes. TDS deductions are tracked per principal (airline, hotel chain, or OTA) with quarterly summaries for Form 26AS matching and TDS certificate collection.
Can TransactIG integrate with our GDS for booking data?
TransactIG supports file-based integration with Amadeus, Galileo, and Sabre exports. API-based integration is available for platforms with open API support.
We manage group bookings where final headcount changes after invoicing. How is this handled?
Group booking amendments are matched as a named variance type, with credit and debit note amounts tracked against the original booking. The reconciliation report shows final vs invoiced headcount per group.
Ready to automate Travel Agency reconciliation?
Terra Insight will walk you through a live TransactIG demo using travel agency transaction data — matching patterns, variance taxonomy, and ERP integration.