Glossary
Definition: BSP is IATA’s financial settlement system that processes transactions between airlines and travel agents, ensuring secure, standardised handling of ticket payments across the global distribution network.
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Term at a glance
| Term | BSP (Billing and Settlement Plan) |
|---|---|
| One-liner | BSP is IATA’s financial settlement system that processes transactions between airlines and travel agents, ensuring secure, standardised handling of ticket payments across the… |
| Where it matters | Premium-cabin booking decisions, fare-rules interpretation, airline-product comparison. |
| Related concepts | IATA · Consolidator Host Network · GDS · E-Ticket · Consolidator Fare |
| Last verified | 2026-05-07 |
The Billing and Settlement Plan is the financial backbone of the airline distribution industry. It handles the complex money flow between travel agents who sell tickets and the airlines that operate the flights. BSP operates in over 180 countries and processes billions of dollars in transactions annually.
Only accredited agencies can participate in BSP, which is why accreditation is essential for legitimate ticket issuance. When a travel agent issues a ticket, the BSP system ensures the airline receives payment according to agreed terms, while providing financial protections for both parties.
For consumers, BSP participation means your ticket purchase is processed through a secure, IATA-regulated system. The airline receives confirmation of your booking, your ticket appears in their system, and all normal benefits (baggage, meals, mileage) are guaranteed. BookMyBusinessClass issues tickets via the BSP system through a host consolidator network.
In booking practice
At a Glance
| Term | Quick definition | Reference |
|---|---|---|
| Booking Reference | A booking reference is a unique alphanumeric code (typically 6 characters) assigned to your flight… | Read |
| Business Class | Business class is a premium cabin on commercial airlines positioned between first class and economy. It… | Read |
| Book the Cook | Book the Cook is Singapore Airlines’ pre-order dining service that allows business and first class passengers… | Read |
| Cabin Crew | Cabin crew (also called flight attendants) are airline employees responsible for passenger safety, service,… | Read |
| Boeing 787 Dreamliner | The Boeing 787 Dreamliner is a modern wide-body aircraft renowned for its fuel efficiency, composite… | Read |
| Carrier Surcharge (YQ) | A cash-fee component charged by certain carriers on award redemptions, on top of government taxes and the… | Read |
Related Terms
A booking reference is a unique alphanumeric code (typically 6 characters) assigned to your flight reservation, used to retrieve and manage your booking online, at check-in kiosks, and with airline staff.
Business class is a premium cabin on commercial airlines positioned between first class and economy. It typically offers lie-flat seats, priority boarding, lounge access, enhanced meals and drinks, larger baggage allowance, and superior service.
Book the Cook is Singapore Airlines’ pre-order dining service that allows business and first class passengers to select their preferred main course from an extensive menu before their flight, guaranteeing their first-choice meal.
Cabin crew (also called flight attendants) are airline employees responsible for passenger safety, service, and comfort during flights. Business and first class cabins have dedicated crew members providing personalised service.
The Boeing 787 Dreamliner is a modern wide-body aircraft renowned for its fuel efficiency, composite construction, larger windows, higher cabin pressure, and improved humidity — all of which reduce jet lag and enhance passenger comfort.
A cash-fee component charged by certain carriers on award redemptions, on top of government taxes and the mileage cost. Carrier surcharges (often coded YQ on tickets) reflect fuel-cost recovery in the historic IATA fare construction; the actual fee rarely correlates with current fuel prices in 2026.
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