Debit Memo Corner
Edited
We've observed a rise in debit memos due to churning, defined differently by each airline.
Generally, when a flight is canceled and rebooked 3-4 times or more for the same passenger in one or more records, airlines deem it as churning. Each time an agent books, prices, and saves a segment, a Passenger Name Record (PNR) is generated, and airlines are billed for every PNR created, whether the segment is purchased or not.
To prevent churning, agents looking for the best fare should follow these steps: Sell the segment, price it, and if not intending to purchase, ignore and do not save the segment. By doing so, a PNR is not created, and airlines won't incur a booking fee.