Consumer Price Index (CPI)

In most contracts between handler and airline, a price adaptation according to the so-called 'Consumer Price Index' (CPI) is arranged. This agreement states that the defined prices for both basic handling and individual services are adapted according to a general price development percentage based on a representative "basket of goods" from the business branch after a certain time.

In regard to this process, the module Contract offers the data field Price adaptation in the Contract table, where the date for due CPI adaptations can be entered. The button Contracts with critical price alignment images/download/thumbnails/286687999/2021-03-23_10_35_11-EPG_GHS___Contract___Contract.png can be used to load and display a list of all contracts with a CPI update due within the next 90 days (note that this time span can be individually adapted in the general application settings).

Performing a CPI adaptation

There are various ways to perform the actual CPI price adaptation when they are due for a customer.

First of all, the prices can be modified directly in the original contract. Nevertheless, we generally recommend to make a copy of the original contract data record and its contents and to make the changes in the duplicate. This allows you to keep the old information for reference purposes and thus to keep track of the developments.

For this method, first mark the contract to be adapted and click the button Deep Copy images/download/thumbnails/286687999/2020-08-20_13_55_45-EPG_GHS___Master_Data_Workflow___Contractual_Workflow_Types.png . This initiates a so-called "deep copy", duplicating the contract with all its contents (services, price configurations, rules etc.).

The actual CPI price adaptations can be done in three different variants:

1. CPI calculation for 'Basic Handling' prices only:
If only the adaption of basic handling prices is agreed in the contract, you can switch to the register Contract -> Price Configurations to do so. Mark all 'Basic Handling' price configurations here and click the button Consumer Price Index images/download/thumbnails/286687999/Consumer_Price_Index.png . This opens a new window where you can enter the percentage value which is to be used as a multiplier for the current prices. Note that positive as well as negative values can be used. After clicking the button K, the corresponding prices of the marked price configurations will be adapted accordingly.

2. CPI calculation for services:
If only the adaptation of the service prices is agreed in the contract, you can switch to the register Contract -> Contract Items to do so. Mark all affected services here and click the button Consumer Price Index images/download/thumbnails/286687999/Consumer_Price_Index.png . This opens a new window where you can enter the percentage value which is to be used as a multiplier for the current prices. Note that positive as well as negative values can be used. After clicking the button OK, the corresponding prices of the marked price configuration will be adapted accordingly.