Ticket Issuance, Reissue & Refund: Rules, Processes & GDS Workflow

Key Concepts & Workflow

Ticket issuance, reissue, and refund are three critical phases in airline ticketing that ensure compliance with IATA regulations, fare rules, and passenger rights. Mistakes here can lead to financial losses or legal disputes. This unit explains:

1. Ticket Issuance: How tickets are generated in GDS, validated, and stored.
2. Reissue: Correcting errors (e.g., wrong passenger name, date, or fare basis) and its impact on penalties.
3. Refund: Rules for partial/full refunds, including unused tickets, cancellations, and fare differences.
4. GDS-Specific Steps: How Amadeus, Sabre, and Galileo handle these processes.
5. Penalties & Fees: No-shows, rebooking fees, and refund deductions.
6. Documentation: Required records for audits (e.g., PNR history, ticket coupons).

1. Ticket Issuance: From PNR to Physical/Electronic Ticket

Ticket issuance is the final step after a reservation is confirmed in the GDS. It converts a Passenger Name Record (PNR) into a ticket document (paper or e-ticket).

How It Works

1. PNR Confirmation: The travel agent or airline confirms the booking in GDS (e.g., Amadeus).
2. Ticket Number Assignment: A unique 6-digit ticket number is generated (e.g., ABC123).
3. Fare Basis & Rules: The system checks if the fare rules (e.g., minimum stay, blackout dates) are met.
4. Taxes & Surcharges: Applicable taxes (e.g., YQ tax in Nepal, fuel surcharges) are added.
5. Ticket Coupon Generation:
   • Paper Ticket: Printed with coupons (each coupon represents a flight segment).
   • E-Ticket: Sent via email with a PDF containing the same details.
6. Validation: The ticket is validated in the GDS to ensure no errors (e.g., incorrect fare basis).

Real-World Example: Ncell Recharge Refund (Analogy)

Just like Ncell deducts a small fee for refunding a recharge, airlines charge penalties for reissuing tickets (e.g., $150 for a name correction). The process is similar:

• Original Transaction: PNR → Ticket (like a recharge).
• Modification: Reissue (like a refund request).
• Fee Deduction: Penalty applied (like Ncell’s refund fee).

flowchart TD
    A["PNR Created\n(Booking Confirmed)"] --> B["Fare & Taxes\nAdded in GDS"]
    B --> C["Ticket Number\nAssigned (e.g., ABC123)"]
    C --> D["Ticket Coupon\nGenerated (Paper/E-Ticket)"]
    D --> E["Ticket Validated\n& Issued to Passenger"]
    E -->|"Error?"| F["Reissue Process\n(Penalty Applied)"]
    E -->|"No Refund?"| G["Flight Departure"]

Types of Tickets

2. Reissue: Correcting Errors in a Ticket

Reissue occurs when there’s an error in the original ticket (e.g., wrong name, date, or fare). Airlines charge a reissue fee (typically $150–$250 per ticket), which is non-refundable.

Common Reasons for Reissue

• Passenger Name Correction (e.g., spelling mistake).
• Date/Time Change (e.g., shifting a flight from 8 AM to 10 AM).
• Fare Basis Error (e.g., wrong fare code applied).
• Route Change (e.g., Kathmandu–Delhi via Mumbai instead of direct).
• Class of Service Upgrade/Downgrade (e.g., Economy → Business).

Step-by-Step Reissue Process in GDS

1. Access PNR: Open the passenger’s PNR in GDS (e.g., Amadeus).
2. Check Fare Rules: Ensure the change complies with airline fare conditions.
3. Apply Reissue Fee: The system adds the penalty to the ticket.
4. Generate New Ticket: A new ticket number is issued (old ticket becomes void).
5. Passenger Notification: The agent informs the passenger of the fee and new details.

Worked Example: Daraz Order Cancellation (Analogy)

Imagine you ordered a product on Daraz but made a mistake in the address. Daraz may:

• Refund partially (if the item is returned).
• Charge a cancellation fee (like an airline’s reissue fee).
• Issue a new order (like a reissued ticket).

For Airlines:

• Original Ticket: Kathmandu–Delhi, ₹5,000, Passenger: "Raj Kumar."
• Error: Name is "Raj Kumar Thapa."
• Reissue Cost: ₹1,500 penalty.
• New Ticket: Same flight, corrected name, total fare now ₹6,500.

sequenceDiagram
    participant Agent as Travel Agent
    participant GDS as Amadeus/Sabre
    participant Passenger as Passenger
    Passenger->>Agent: Requests Name Correction
    Agent->>GDS: Checks Fare Rules & Applies Reissue Fee
    GDS-->>Agent: New Ticket Number (ABC456)
    Agent->>Passenger: Issues New Ticket + Penalty Invoice

Penalties for Reissue

3. Refund: Getting Money Back

Refunds happen when:

• A passenger cancels the ticket.
• The ticket is unused (no-show).
• There’s a fare difference (e.g., cheaper fare found later).

Refund Rules by Scenario

How Refunds Work in GDS

1. Check Refund Eligibility: The GDS verifies if the ticket qualifies (e.g., non-refundable fare = no refund).
2. Calculate Amount: Deduct taxes, surcharges, and penalties (if any).
3. Process Refund:
   • Bank Transfer: To the original payment method.
   • Credit Voucher: If bank details are unavailable.
4. Update PNR: Mark the ticket as refunded in the system.

Worked Example: NEPSE Share Refund (Analogy)

If you sell shares on NEPSE but the buyer cancels, you get a partial refund (minus brokerage fees). Similarly:

• Original Fare: ₹10,000 (Kathmandu–Delhi).
• Taxes: ₹1,500.
• Cancellation Before Departure: Full refund minus taxes → ₹8,500.
• Cancellation After Departure: No refund (flight used).

flowchart TD
    A["Passenger Cancels"] --> B["Check Fare Rules\n(Refundable/Non-Refundable?)"]
    B -->|"Refundable"| C["Calculate Refund:\nFare - Taxes - Penalties"]
    B -->|"Non-Refundable"| D["No Refund\n(Or Credit Voucher)"]
    C --> E["Process Refund\nto Original Payment Method"]

Common Refund Scenarios in Airlines

1. Voluntary Cancellation:
   • Before Departure: Full refund (minus taxes).
   • After Departure: No refund for used segments.
2. Involuntary Cancellation (e.g., flight cancelled by airline):
   • Full refund for all segments.
3. Overbooking:
   • Passenger may get a refund or rebooking on another flight.

4. GDS-Specific Steps for Issuance, Reissue & Refund

Each GDS (Amadeus, Sabre, Galileo) has slightly different workflows, but the core steps are similar.

Amadeus Workflow

1. Issuance:
   • Use /TICKET command to generate the ticket.
   • Verify with /VALIDATE.
2. Reissue:
   • /REISSUE command → Enter new details → System applies penalty.
3. Refund:
   • /REFUND → Enter ticket number → System calculates amount.

Sabre Workflow

1. Issuance:
   • TN (Ticket Number) → TI (Ticket Issue).
2. Reissue:
   • TR (Ticket Reissue) → Enter changes → Penalty auto-applied.
3. Refund:
   • RF → System checks eligibility → Processes refund.

Galileo Workflow

1. Issuance:
   • TK → TI (Ticket Issue).
2. Reissue:
   • TR → New ticket generated with penalty.
3. Refund:
   • RF → Refund amount displayed → Processed via bank.

5. Penalties & Fees: What Airlines Charge

Airlines impose fees to cover administrative costs and prevent last-minute changes. Common penalties:

Real-World Example: Pathao Ride Cancellation Fee

• Original Fare: ₹400 (Kathmandu to Thapathali).
• Cancellation Before Pickup: ₹50 fee → ₹350 refunded.
• Cancellation After Pickup: No refund (driver already en route).

Airlines are similar:

• Non-Refundable Ticket: ₹10,000 → ₹0 refund if cancelled after departure.
• Refundable Ticket: ₹12,000 → ₹10,000 refund (minus taxes).

6. Documentation & Audits

Airlines must keep records for:

• Tax Authorities (e.g., VAT compliance).
• Passenger Disputes (e.g., refund claims).
• IATA Audits (to ensure compliance).

Required Documents

In the Real World

1. eSewa & Khalti (Digital Payments)

   • Idea Used: Refund Processing
   • How: When you cancel a bus ticket on eSewa, the system automatically calculates the refund (minus a small fee, like an airline’s cancellation charge). The money is returned to your wallet within 24 hours—similar to how airlines process refunds via bank transfer.

2. Daraz Order Cancellations

   • Idea Used: Reissue & Penalty Logic
   • How: If you order a product on Daraz but need to change the delivery address, Daraz may:
     • Reissue the order (like an airline reissuing a ticket).
     • Charge a cancellation fee (like a reissue penalty).
     • Offer a partial refund if the item is returned (like unused flight segments).

3. Ncell Recharge Refunds

   • Idea Used: Fare Difference & Tax Deductions
   • How: If you recharge your Ncell number but later find a cheaper plan, you can request a refund for the difference (minus a small service charge). Airlines do the same when a passenger finds a lower fare after booking (e.g., ₹8,000 ticket → later ₹6,000 fare exists → refund of ₹2,000 minus taxes).

4. Nepal Airlines & Yeti Airlines (Domestic Flights)

   • Idea Used: No-Show Penalties
   • How: If you book a flight with Nepal Airlines but don’t show up, the airline may:
     • Charge a no-show fee (₹2,000–₹5,000).
     • Void the ticket (like Pathao cancelling a ride after pickup).
     • Sell the seat to another passenger (common in budget airlines).

5. NTC Train Bookings (Analogy to E-Tickets)

   • Idea Used: Electronic Ticket Validation
   • How: When you book a train ticket via NTC’s website, you get a PDF e-ticket (like an airline e-ticket). At the station, the guard scans the QR code to validate it—just like airline staff check e-tickets at the gate.

Exam Tip

This unit is heavily tested in TU/PU exams with:

1. Scenario-Based Questions (e.g., "A passenger books a ticket at ₹10,000 but finds a ₹7,000 fare later. Calculate the refund.").

   • Key Points to Remember:
     • Always deduct taxes/surcharges from refunds.
     • Non-refundable fares = no refund (unless airline policy allows).
     • Reissue fees are non-negotiable (e.g., $150 for name correction).

2. GDS Command Questions (e.g., "What command is used in Amadeus to reissue a ticket?").

   • Amadeus: /REISSUE
   • Sabre: TR
   • Galileo: TR

3. Comparison Tables (e.g., "Differentiate between paper and e-tickets.").

   • Focus on: Physical vs. digital, validity, ease of use.

4. Real-World Applications (e.g., "How is a Daraz order cancellation similar to an airline reissue?").

   • Link to: Penalties, refund logic, and system workflows.

Common Mistakes to Avoid

• Ignoring Taxes: Always subtract YQ tax (Nepal), fuel surcharges, or airport fees from refunds.
• Assuming All Tickets Are Refundable: Non-refundable fares (common in budget airlines) mean no refund if cancelled.
• Forgetting Penalties: Reissues always have a fee—don’t assume it’s free.
• Mixing GDS Commands: Know which system uses /REISSUE (Amadeus) vs. TR (Sabre).

Quick Revision Table

Final Note: Master this unit by practicing worked examples (e.g., refund calculations) and memorizing GDS commands. Exams often test real-world scenarios, so relate concepts to eSewa, Daraz, or Ncell for better retention.