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GlobalFares Self Study Guide - Appendix B

Note: All Examples Are for Illustration Purposes Only

Appendix B:  Impact to PrivateFares Users

Handling Surcharge Exemptions

Pre-GlobalFares the next generation

Post-GlobalFares the next generation

Creating Selling Fares

Appendix B:  Impact to PrivateFares Users

GlobalFares the next generation has an impact to PrivateFares users regarding:

Surcharge exemptions if you are utilizing Agency PrivateFares for net/flat fares or discount fares with rule overrides.

Creation of selling fares if rule Category 35 does not specify a selling level.

Handling Surcharge Exemptions

GlobalFares the next generation has an impact to you regarding surcharge exemptions if you are utilizing Agency PrivateFares for net/flat fares or discount fares with rule overrides.

Pre-GlobalFares the next generation

Agency PrivateFares net/flat contracts validate the surcharge information manually maintained in the GlobalFares database.  Markets with surcharge exemptions are added to the table as filed by the airline.  Agency PrivateFares validates the exemptions as coded on the existing table, based on a match by the simple Carrier/market key. 

Because you are not able to exempt surcharges, you had to adjust your contracts to account for the surcharges.  For example, if the net/flat rate was $200 from Denver to LAX, with the surcharges, it could price $240.  If the net/flat rate of $200 was exempt from surcharges, but that market was not listed as exempt on the table, you may have adjusted your rate to $160, in order to obtain the $200 rate.  On the other hand, if Denver to LAX was exempt for the airline that provided the net/flat rate, your rate of $200 was valid and did not need to change.

If you utilize PrivateFares 1 for percentage discounts with no rule overrides GlobalFares the Next generation does not affect you, as GlobalFares applies surcharges appropriately according to the base fare rules.

Post-GlobalFares the next generation

With the implementation of GlobalFares the Next generation, the manual surcharge table no longer exists.

The ATPCO product includes a more complex key of Tariff/Carrier/Rule, rather than just Carrier/market.  ATPCO's surcharge category (12) provides automated advanced surcharge application to PrivateFares 1 net/flat fares.

PrivateFares I net/flat contracts utilize the surcharge information listed in an airline's general rule category 12.  They do not apply any exemptions listed in a specific Tariff/Carrier/Fare rule category 12, since the PrivateFares I net fare does not have an associated Tariff/Fare rule to direct it to the appropriate data.  This results in the change of surcharge applications and could require additional adjustments in the amount of net/flat rates in your PrivateFares I contract.

If you use PrivateFares I for percentage discounts with no rule overrides, the change in surcharge application does not affect you, as surcharges are applied appropriately according to the base fare rules.

There may not be a change to the contract required, but you need to verify the contract to ensure that the amounts have not changed due to the new surcharge application.

Creating Selling Fares

If Category 35 specifies no selling level, you can use Agency PrivateFares to create the selling level. 

To use Agency PrivateFares to create a selling level fare you must have update authority in category 35. Additionally, if you specify a minimum/maximum selling fare or a selling fare range, the result of the Agency PrivateFares calculation must comply with the selling fare parameters specified in the category.

Example 1

NET fare = USD 100.00.

Category 35 states a selling fare range of USD 125.00 to USD 150.00.

Agency PrivateFares contract states to increase fare by 30%.

The Agency PrivateFares fare displays and quotes because it falls within the selling fare range specified by the carrier.

Example 2

NET fare = USD 100.00.

Category 35 states a selling fare range of USD 125.00 to USD 150.00.

Agency PrivateFares contract states to increase fare by 10%.

The Agency PrivateFares fare does not display or quote because it does not fall within the selling fare range specified by the carrier.

There is no check at contract build time to ensure you have update authority or that the resulting fare falls within any min/max fare parameters specified.  You can use the net fare detail display to ensure update authority and to determine if the carrier has filed min/max fare parameters. You can create the Agency PrivateFares contract, but if you do not meet the category 35 rules, GlobalFares does not display or quote the fare.

You can redistribute to other locations a selling fare created using Agency PrivateFares that is based upon a net fare with category 35 without having redistribution authority in category 35.

 

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