The Electronic Miscellaneous Document (EMD) is an
International Air Transport Association
The International Air Transport Association (IATA ) is a trade association of the world's airlines founded in 1945. IATA has been described as a cartel since, in addition to setting technical standards for airlines, IATA also organized tar ...
(IATA) standard for electronically documenting
ancillary revenue; that is, all other sales and transactions between airlines and passengers besides
electronic ticket
An electronic ticket is a method of ticket entry, processing, and marketing for companies in the airline, railways and other transport and entertainment industries.
Airline ticket
E-tickets in the airline industry were devised in about 1994, an ...
s. It is a step toward moving the airline industry to purely electronic transactions in the business-to-consumer context.
Overview
The flaw with electronic tickets is that they only document ''one'' very simple type of transaction: a passenger boards a plane at point A and gets off at point B, and the airline charges (1) airfare and (2) taxes. At the time e-tickets were first implemented in the 1990s, this simple data structure was not a major problem because most airlines still practiced
product bundling
In marketing, product bundling is offering several products or services for sale as one combined product or service package. It is a common feature in many imperfectly competitive product and service markets. Industries engaged in the practice ...
. That is, it was simply expected in most major markets that the price of a ticket included many other ancillary services like (1) checking up to two regular-sized bags and (2) one or two in-flight meals.
During the 1990s and 2000s, many airlines became financially distressed due to numerous factors:
deregulation
Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...
, competition from
low-cost carrier
A low-cost carrier or low-cost airline (occasionally referred to as '' no-frills'', ''budget'' or ''discount carrier'' or ''airline'', and abbreviated as ''LCC'') is an airline that is operated with an especially high emphasis on minimizing ope ...
s, rising fuel prices, and economic shocks in the form of the
dot-com bubble
The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet.
Between 1995 and its peak in March 2000, the Nasdaq Comp ...
and later, the
Great Recession
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
. Low-cost pioneer
Ryanair
Ryanair is an Irish ultra low-cost carrier founded in 1984. It is headquartered in Swords, Dublin, Ireland and has its primary operational bases at Dublin and London Stansted airports. It forms the largest part of the Ryanair Holdings family ...
became notorious for raising
ancillary revenue in the form of unbundling every possible component of airfare and adding it back on through optional fees.
However, because e-tickets are not designed to carry such additional information, many airlines are not able to actually charge those additional fees until the passenger makes their first direct contact with the airline through its Web site or at an airport check-in kiosk or counter. This slows down check-in and frustrates consumers. To facilitate these new business processes, airlines either have implemented nonstandard proprietary mechanisms (such as when selling tickets through their own direct-to-consumer Web sites) or are tracking such transactions on paper forms, coupons or vouchers.
The IATA EMD standard document is enabling the fulfillment, payment and tracking of usage of the services booked through travel agencies (using global distribution systems) or through the airline's direct distribution channels (via airline's CRS) in a seamless process.
Standard
The IATA EMD standard is documented in IATA Passenger Service Conference Resolution Manual in resolutions 725F, 725G, 725H.
Two types of EMD exist:
* EMD-A associated to an e-ticket
* EMD-S standalone
EMD implementation is part of an IATA Simplifying the Business program called e-services, endorsed by IATA Board of Governors.
Since 2009, IATA Board of Governors endorsed the replacement in IATA BSP (for GDS agents sales) of current Virtual Miscellaneous Charge Orders (VMCO) and Virtual Miscellaneous Multi-purpose Documents (VMPD) at the end of 2013 by 100% EMD. This mean that starting 2014, VMCO and VMPD should not be processed anymore by IATA BSP.
At the beginning of November 2013, IATA confirmed the sunset of vMCO documents in January 2014 and announced a delay to sunset the vMPD until November 2014. vMCO documents have been removed from IATA BSP in January 2014.
Since 1 November 2014, vMCO and vMPD documents are not anymore supported in IATA BSP, therefore IATA BSP only supports EMD and e-tickets.
The following
Computer reservations system have implemented the IATA EMD standard for airlines direct sales:
*
Amadeus CRS from
Amadeus IT Group
* Mercator from
The Emirates Group
The Emirates Group ( ar, مجموعة الإمارات) is a state-owned Dubai-based international aviation holding company headquartered in Garhoud, Dubai, Garhoud, Dubai, United Arab Emirates, near Dubai International Airport. The Emirates Gro ...
* Resiber from
Iberia (airline)
Iberia (), legally incorporated as ''Iberia Líneas Aéreas de España, S.A. Operadora, Sociedad Unipersonal'', is the flag carrier airline of Spain. Founded in 1927 and based in Madrid, it operates an international network of services from i ...
* SabreSonic from
Sabre (computer system)
Sabre Global Distribution System, owned by Sabre Corporation, is a travel reservation system used by travel agents and companies to search, price, book, and ticket travel services provided by airlines, hotels, car rental companies, rail provider ...
*
SITA
Sita (; ) also called as Janaki and Vaidehi is a Hindu goddess and the female protagonist of the Hindu epic, '' Ramayana''. She is the consort of Rama, the avatar of the god Vishnu, and is regarded as a form of Vishnu's consort, Lakshmi ...
*
Travelport
Travelport Worldwide Ltd provides distribution, technology, payment solutions for the travel and tourism industry. It is the smallest, by revenue, of the top three global distribution systems (GDS) after Amadeus IT Group and Sabre Corporation. ...
*
TravelSky
*
HP axsRES and Shares
The following Ticket System Providers have implemented the IATA EMD standard for travel agencies sales:
* Abacus
* Amadeus
* Axess
* Farelogix
* Infini
* Sabre
* Travelport (Apollo, Galileo, Worldspan)
* Travelsky
* IATA WebLink
The following System Providers have developed their own EMD management system :
* Hexaware (HexEMD)
Implementation
More than 180 airlines implemented the IATA EMD standard at the end of 2014. For example, Finnair was an early adopter of the IATA EMD standard "launching the first EMD in Europe".
Air China was the first Chinese airline to adopt the IATA EMD standard in 2010.
The list of airlines having implemented the IATA EMD standard is disclosed by IATA on IATA e-services project page.
At the end of 2014, the IATA EMD standard document had been issued and processed in 82 IATA BSP by more than 130 airlines.
More than 52 million EMD were issued in 2014, representing more than 2 billion USD.
Interline
Just like the electronic ticket, the electronic miscellaneous document also supports interline standards.
References
IATA Passenger Service Conference Resolution ManualIATA e-services
External links
* {{Official website, http://www.iata.org/
International Air Transport Association