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ADM Management & Reduction

Agent Debit Memo (ADM) is the legitimate accounting tool used by airlines to collect adjustments for Standard Traffic Documents (STDs) issued by Agents (Reso 850m) (pdf). In 2015, airlines have issued 2.3 million ADMs transactions for a value of US $ 579 million, incurring an estimated industry cost of US $ 150 million to manage the ADM process.

The cost incurred by the industry for the management of ADMs is extremely high. To respond to this issue, the Passenger Agency Steering Group had established a dedicated ADM Strategy Group as well as the ADM User Group (Formerly referred to as ADM Working Group) in order to support industry initiatives that would facilitate ADM reduction and improved ADM management..

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What do Airlines and Travel Agents have to say about ADMs?

The ADM Reduction Project team conducted an ADM Market Analysis to get market-based data around the topic of ADMs from IATA Member Airlines and Accredited Agents. The ADM Market Analysis Report provides intelligence that will help IATA building a strategy to promote the ADMWG/ADMUG best practices in a more efficient manner.

 

The ADM Management & Reduction Project has initially been endorsed by the Passenger Steering Group (PSG). It has been initiated in order to support the formation of the ADMUG and facilitate the initial phases of establishing standards and initiatives. The objectives of this project are to:

  • Reduce the need for ADMs in various areas, thereby reducing the workload, resources and time spent on post-billing revenue auditing
  • Streamline various work processes and enhancing the ADM process, creating a lean post-billing settlement process
  • Enhance the communication process within the existing workflow and improve business relationships

After identifying inefficiencies in the current distribution chain, solutions found within the ADMUG are resulting in a reduced need for post-billing revenue recovery via ADMs, and their implementation started taking place in 2017 and is on-going.

More information on the need to reduce ADMs (pdf).

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