PRESIDENT'S MESSAGE
By Gary M. Fee

CHECKING YOUR CODE

Home Based Agencies are growing at a rapid pace in the U.S. and also the pace is picking up in the International market as well. Coupled with this growth is the emergence of travel industry identification codes that tell our suppliers who you are. Today's new agency identification codes do more that just tell the supplier who you are but where you are and what is your industry status as a seller of travel. These codes help aid the supplier community to identify your home based agency as a commissionable entity.

There are three main codes that OSSN members should consider if their desire and business needs are to establish a home based travel agency. Each code has their pros and cons depending upon your needs and point of view.

THE CLIA CODE

It is important to understand that CLIA is a marketing and training company. CLIA is a not for profit company. They are primarily supported and funded by the CLIA cruise line members. Their main objective is to educate and train travel agents how to sell and market cruises. CLIA started issuing codes for the travel industry to aid and assist the non-ARC or non air endorsed seller of travel that was focused on selling cruises. The Cruise Lines agreed to start accepting these codes to help identify these sellers of travel. Today many land based suppliers also now accept the CLIA code since so many home based agents where selling cruises and this presented a great avenue for many tour operators to reach this market and increase their sales. CLIA issues as an option for their members a photo ID card.

Some of the cons with the CLIA code may be the cost of obtaining the number. $399 to join CLIA and $299 to renew may be expensive for some agents. Issuing codes is not the main priority of CLIA. Educating and Training is their primary agenda. Just about anyone can secure this code. This may not make some suppliers comfortable since there is little criteria to obtain a CLIA number. In fact, one can obtain an "instant" CLIA code on the CLIA website. Suppliers validating the validity of a CLIA code may find the process cumbersome. CLIA codes are not accepted in the various GDS systems for agency identification and not all suppliers accept the CLIA code.

THE TRUE CODE

The TRUE Coding System is a three year old not for profit entity serving the needs of the U.S. Agency market. TRUE is managed by ARTA and OSSN. OSSN is the primary administrator of the TRUE program. TRUE codes are issued and maintained by IATA. The one and only purpose of TRUE is to help agency sellers of travel to be identified by the supplier community and to be considered as commissionable entities. TRUE codes do not include any airline ticketing endorsements. All suppliers accept the TRUE code except Marriott Corporation. TRUE codes are issued to sellers of travel who qualify for the code. TRUE codes are accepted in all the major GDS systems. The TRUE code is affordable for most agencies, $70 for new application and $60 for renewal. Renewals are on the member's anniversary date. Suppliers may validate the validity of the code on the IATA/IATAN website located at: www.checkacode.com Members who have been issued a TRUE code assignment have an option to secure a Member Photo ID card.

The following criteria is required by TRUE before a code is issued.

1. Verification Of State Seller of Travel Law Compliance (if applicable in your state)
2. Verification of travel business checking account.
3. Maintain active membership status in ARTA or OSSN

Once the verification and qualification process is completed, OSSN will upload this data to IATA on Thursday of the week and issue the TRUE code the following Tuesday.

THE TSI CODE

The TSI program was introduced by IATAN six years ago to recognize those travel agencies that wanted endorsement but did not want airline appointments or to issue airline tickets. This is similar in nature to the TRUE code assignment. IATAN is a not for profit company.

A TSI is defined by IATAN as a business that is engaged in the sale and/or brokerage of travel and travel related services such as cruises, tours, hotels, car rental, bus and rail transportation and meeting planning. TSIs range from individual home-based businesses to large corporations and are located in the United States or Possessions. Suppliers may validate the validity of the TSI code at the IATA/IATAN website located at: www.checkacode.com.

Essential to the TSI Program is a set of specific standards for endorsement that must be met and maintained.

IATAN has amended its requirements in an effort to recognize those agencies or persons already known to IATAN and who wish to become or convert to a TSI. If the owner of the business has been registered with IATAN for two (2) of the past five (5) years and was eligible for an IATAN ID Card and earned at least $20,000 in each of those two (2) years from the sale of travel and travel related services, they will meet the first part of the General Business Requirement.

IATAN also recognized the challenging times facing the industry and modified its second option for a business that has been in operation for at least one (1) year but does not have a track record with IATAN, to have produced at least $20,000 in gross travel income or $200,000 in gross travel sales in the previous 12 months.

A third option was added to recognize businesses that have been in operation for at least six (6) months but less than one (1) year and the owner has invested or committed to invest a minimum of $25,000 in the travel business. This option recognizes new agencies that have not had an opportunity to achieve the required income or sales requirements. After an agency has been in operation for more than a year, the income or sales levels must be achieved for continued endorsement.

Application fees run approximately $215 with renewals at $65 per year.

Errors and Omissions insurance is required for the TSI endorsement but there is no set limit of coverage.

TSI endorsed agencies may secure the IATAN ID card and may also help their outside agents qualify in receiving the IATAN ID card if the outside agent earns $5000 per year in commissions and the earning are validated by a 1099 form.

What code is best for your business? Or do you need any code at all if you decide to book all your travel booking transactions through a "Host" Agency? This is a business decision that hopefully OSSN can assist you with in a industry that continues to change.

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