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Airlines and payments – what’s new?

Ai Editorial

14th March, 2022

The travel industry and payment specialists have been evaluating risks associated with B2B travel payments, assessing the role of stakeholders across the value chain and working on a financially viable way out.

Parties have to agree on a solution that not only protects them, but also the traveller.

So what has changed in the past 24 months as far as airlines’ pacts and other initiatives are concerned? Some key points to assess:

  • Payment terms with card acquirers: What changes have been brought in terms? How does it vary according to the business model of airlines, for instance, the short and long-haul mix of an airline? How the analysis is shaping up as per the profitability margin of airlines?
  • Routing of a transaction: For cross-border merchants like airlines, how they are going about integrating the right mix of regional and global payment partners (PSPs, acquiring banks) to optimize acceptance rates and other key areas? It is imperative to focus on optimizing the routing of each card transaction and gaining an insight into real-time information on the current acceptance rates for specific PSP or acquirers and the costs associated with each route.
  • More responsibility: NDC brings a new flow to the industry and one critical aspect is related to being the Merchant of Record. So how the responsibility related to a transaction coming up from an indirect channel is going to shape up for an airline must be delved into.

An incompetent digital payment strategy can impact a brand in a striking way considering the way digital commerce has shaped up in the last 18 months or so.

Attend not-to-be-missed travel payments #ATPS conference in London: 15-16 June 2022 (Live Event):

https://lnkd.in/e7KSQqy7

By Ritesh Gupta

Ai Team

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