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Chapter 8: Ticket refunds and exchanges.

TICKET REFUNDS AND EXCHANGES

The reporting period for ARC forms and tickets is one week (as covered with the information on Sales Reports). Agencies must use a REN--Refund/Exchange Notice form for processing refunds. An agency can only refund or exchange tickets that were issued by that agency.

IMPORTANT DETAILS ABOUT REFUNDS/EXCHANGES

1. Don't refund/exchange any ARC document if it was not issued by your agency.

2. Check the date of issue of the ticket for validity (tickets are limited to one year), and all other restrictions (non-refundable, penalties, etc.).

3. Consult the airlines for assistance or the rules of the fares involved if there is any question regarding the refund particulars.

4. Most non-refundable tickets can be exchanged for a fee of $75.00. If they are cancelled, there is usually no refund

5. When completing an exchange, MAKE SURE TO ENTER THE INFORMATION ABOUT THE EXCHANGED TICKET in the appropriate areas of the NEW TICKET. You will need to show the number of the ticket being exchanged, when and where it was issued and additional collection amounts (if applicable).

6. Refunds and exchanges are subtracted/added in the sales report according to the type of sale (cash/credit card).

7. Don't deduct from sales reports any LOST/STOLEN tickets, fare adjustments or overcharges. A LOST/STOLEN TICKET REPORT FORM must be processed with the airline and for fare adjustments and overcharges direct correspondence to the airline involved

A sample REN--REFUND/EXCHANGE NOTICE is provided on the next page with an explanation of completion procedures. Examples and exercises follow for your practice and understanding of ticket refunds and exchanges.

[ILLUSTRATIONS OMITTED]

EXAMPLE OF A REFUND FOR A TICKET--NO PENALTY

Gloria King returns this ticket for a refund. There is no penalty and the agency returns the commission of $25.00.

[ILLUSTRATIONS OMITTED]

NOW COMPLETE AN EXAMPLE OF A REFUND--NO PENALTY

Justin Kerr returns this ticket for a refund. There is no penalty. As the ticket was paid for with cash, the agency would issue a refund check for the amount. The agency returns the 5% commission. Use Nov. 6, 2001 as the date of the refund transaction. Make sure to invalidate the returned ticket by writing REFUNDED across it.

[ILLUSTRATIONS OMITTED]

EXAMPLE OF A EXCHANGE--WITH A PENALTY

Jimmy Pritchard changes the date of travel from June 22 to June 21. The ticket has to be reissued with the penalty of $75.00 plus the additional airfare of 84.00.

[ILLUSTRATIONS OMITTED]

USING THE EXAMPLE, ANSWER THESE QUESTIONS.

1. The name of the agency is -- Travel.

2. The first ticket was issued on -- (date) and the new ticket is issued on -- (date).

3. $-- was the total additional collection amount.

4. The agency returned $-- commission on the old ticket.

5. $ -- is the total amount of commission due to the agency from the exchange.

6. The fare basis code for the Atlanta--Tampa segment changed from -- (on the old ticket) to QROTN.

7. There is a surcharge (coded Q) of $ -- shown in the fare calculation area.

8. The segment fees total is $ --.

EXAMPLE: PART OF A TICKET EXCHANGED--WITH A PENALTY

Barbara Maggen wants to exchange coupon 2 (ATL-TPA) for a flight from Atlanta to Orlando. There is a $75.00 penalty/fee, plus an additional cost to the airfare. In exchange transactions the new ticket's fare calculation area will show exchange information (with codes such as EX for exchange, OR for original issue and A/C for additional collection). EXCH is shown in the commission and tax areas of the new ticket.

[ILLUSTRATIONS OMITTED]

NOW ANSWER THESE QUESTIONS USING THE EXAMPLE

1. Coupon 2 of the first ticket had a base fare of $ --.

2. $289.50 was the total amount of the old ticket. The total amount for the coupon being exchanged (base fare and taxes) is --.

3. The additional collection required for the new ticket was $ --.

4. What credit card was used for the additional payment? --

5. The commission returned on the coupon 2 was $ --.

6. The agency receives $25.00 commission on the penalty fee. True or False --

7. The fare basis/code for the new ticket is the same as the fare basis/code for the coupon 2 being exchanged. True or False --

8. The old ticket number is 006 -- check digit --.

9. Notice the old ticket number is shown in the fare calculation area of the new ticket. It follows EX (exchange). It is also shown after OR (original issue). After OR the ticket number is followed by the city code (where the ticket was issued) and the date of the original issue. The original ticket was issued in -- (city) on -- (date).

10. The total commission the agency earns from the exchange is $ --.

LET'S GO THROUGH AN ENTIRE EXAMPLE OF AN EXCHANGE.

First, complete a manual ticket using the PNR below:

[ILLUSTRATION OMITTED]

Use 5% commission and endorse the ticket as NON-REFUNDABLE.

[ILLUSTRATIONS OMITTED]

FOR MORE PRACTICE, COMPLETE A REN AND CHARGE FORM FOR THIS EXCHANGE TRANSACTION

[ILLUSTRATIONS OMITTED]

IF THIS MANUAL IS USED IN A TRAINING PROGRAM, YOUR INSTRUCTOR/TRAINER CAN CHOOSE TO ASSIGN ADDITIONAL EXAMPLES OF REFUND/EXCHANGE TRANSACTIONS. HERE ARE SOME BLANK REN FORMS.

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CERTIFICATES AND VOUCHERS

Airlines often issue certificates or vouchers . These documents come in a variety of formats and appearances and are used for different purposes. There are two basic types of certificates/vouchers:
TYPE A--DISCOUNT CERTIFICATE--An authorization to issue a ticket at
a reduced amount, using the certificate/voucher as the supporting
document.

The discount certificate has no real value by itself. The certificate
should include ticketing instructions, but if there is anything
unclear about the procedures contact the airline. The ticket should be
issued as a straight sale and the certificate number should be
indicated in the ENDORSEMENTS/ RESTRICTIONS box of the ticket.

The certificate is usually placed on top of the reporting documents.

TYPE B--VOUCHER--This form authorizes the voucher to act as a partial
payment towards the full face value of an issued ticket.

Because a voucher has a value, a ticket is issued at full value with
the voucher being used as partial payment. Therefore, it is an
exchange transaction. The voucher number is shown in the "OLD TICKET"
boxes of the REN form.

As in normal exchange transactions, the REN form is placed on top of
the reporting coupon of the new ticket, followed by the exchanged
coupon(s)--which in this case is the voucher being used.


NOTES --
COPYRIGHT 2000 Delmar Learning
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Copyright 2000 Gale, Cengage Learning. All rights reserved.

Article Details
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Author:Dervaes, Claudine
Publication:Domestic Travel & Ticketing
Date:Jan 1, 2000
Words:1075
Previous Article:Chapter 7: Ticket examples and exercises.
Next Article:Chapter 9: PTAs, MCOs, and tour orders.
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