Service Level Agreement Bsp

As businesses continue to expand and grow, the need for clear communication and guidelines becomes more important to ensure smooth operations. That is where Service Level Agreements (SLAs) come into play. Specifically, the BSP or Billing and Settlement Plan is a vital component of the aviation industry, and a proper SLA is necessary to ensure the BSP runs efficiently.

What is a Service Level Agreement?

A Service Level Agreement (SLA) is a legal contract between two parties, typically a client and a service provider, that outlines the expectations and requirements for a specific service. An SLA includes detailed descriptions of the services to be provided, the expected performance outcomes, and the metrics used to evaluate the success of the service. It also outlines the responsibilities of each party, the consequences of failing to meet the agreed-upon standards, and the remedies if one party fails to meet the expected service levels.

What is the BSP?

The Billing and Settlement Plan (BSP) is a system developed by the International Air Transport Association (IATA) to simplify and streamline financial transactions between airlines and travel agencies. The BSP acts as a mediator between airlines and travel agents, effectively handling the payment and reconciliation processes for airfare sales.

Why is an SLA important for the BSP?

An SLA is essential to ensure that the BSP runs smoothly and efficiently. The agreement outlines the responsibilities of both the airline and travel agency, thus mitigating any misunderstandings or conflicts that may arise. By clearly defining expectations and metrics for success, an SLA ensures that both parties are accountable for their responsibilities and are working towards the same goals.

What should be included in a BSP SLA?

A BSP SLA should include the following components:

1. Scope and Objectives: This section defines the scope of the SLA and the objectives that the airline and travel agency aim to achieve.

2. Responsibilities: This section outlines the responsibilities of the airline and travel agency in the BSP process, including the submission of accurate and timely information.

3. Performance Metrics: Metrics used to evaluate the success of the BSP process, such as error rates and reconciliation times, should be defined in this section.

4. Communication: Communication protocols between the airline and travel agency should be established, including the frequency, mediums, and format of communication.

5. Consequences of Breach: This section outlines the consequences of breaching the agreement and the remedies available to the parties impacted by the breach.


In summary, a Service Level Agreement is a crucial component of the Billing and Settlement Plan in the aviation industry. An SLA outlines expectations, responsibilities, and consequences, ensuring that both the airline and travel agency are accountable for their actions and working towards the same goals. A well-drafted BSP SLA will mitigate any misunderstandings or conflicts, and ultimately lead to a more efficient BSP process.

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