Imagine an airline that can precisely tailor commission incentives for travel agents based on distribution channels, encouraging adoption of NDC (New Distribution Capability) while maintaining competitiveness and profitability. This is no longer a hypothetical scenario but a reality made possible by GNR5.
The End of One-Size-Fits-All Commissions
In today's competitive aviation market, airlines face significant challenges in motivating travel agents to adopt preferred distribution strategies. Traditional commission models often fail to reflect the varying value of different distribution channels, leaving agents under-incentivized and airlines unable to maximize revenue. GNR5 (Global Net Remit 5) transforms this paradigm by enabling airlines to set flexible commission rates based on whether bookings come through traditional GDS (Global Distribution System) or modern NDC channels.
Seamless NDC Commission Processing Through BSP
GNR5 supports commission settlements for NDC services via IATA's BSP (Billing and Settlement Plan), the secure and efficient payment system that simplifies transactions between airlines and travel agents. This integration reduces operational risks while allowing airlines to focus on strategic growth.
Global Reach Through IFG Integration
The solution's seamless connection with IATA Financial Gateway (IFG) enables airlines to implement customized commission programs for any IATA-coded travel agent worldwide, whether accredited agencies or TIDS participants. This global coverage ensures consistent incentive application regardless of location or booking channel.
Dual Incentive Structures
GNR5's architecture supports simultaneous rewards for both individual agents and contracted networks or teams. This dual approach allows airlines to create targeted incentive programs for specific markets or sales channels, enhancing marketing effectiveness.
Value-Based Commission Allocation
The platform enables dynamic commission adjustments based on route value factors like distance or cabin class. This granular control helps airlines optimize costs while improving revenue performance.
Performance-Based Bonus Commissions
GNR5 supports supplemental commissions that automatically trigger when agents achieve predefined sales targets. Airlines can configure bonus parameters including rates, payment cycles, and qualification criteria to maintain continuous motivation.
Strategic Advantages of GNR5
- Channel-specific commissions: Differentiate incentives between traditional GDS and NDC bookings
- BSP integration: Secure NDC commission processing through established settlement systems
- Global implementation: Uniform incentive application across all markets via IFG connectivity
- Multi-tier motivation: Simultaneous rewards for agents and their networks
- Dynamic adjustments: Flexible commission structures based on route value and performance metrics
- Data transparency: Comprehensive reporting for distribution strategy optimization
Operational Impact
Airlines implementing GNR5 can expect measurable improvements across key operational areas:
- Increased NDC adoption rates through targeted incentives
- Enhanced agent loyalty through personalized reward structures
- Data-driven distribution strategy optimization
- Revenue growth through precision incentive programs
- Reduced administrative overhead via automated commission processing
Implementation Scenarios
The system supports diverse application cases including:
- NDC booking promotion through premium commissions
- High-value route incentives for long-haul or premium cabin sales
- Market-specific programs for geographic expansion
- Product-focused campaigns for ancillaries or package deals
- Performance-based bonuses for target achievement