15th May, 2023
Travel merchants are facilitating payment options that are not only preferred by the travel shopper but also pave way for higher conversion, bigger average transaction value and also reduce cost of acceptance for them.
Air Canada highlighted the significance of buy now pay later (BNPL) on these counts during the #MegaEvent2023 in London in late April. Some of the key highlights, as shared by Karen Brzozowicz, Manager, Global Payment Products, Air Canada, were:
- The BNPL offering at the consideration stage drives down-funnel conversion.
- It also has been proving its efficacy in marketing initiatives – as revenue management tool for under-performing routes, targeted O&D pricing offers, new route promotions etc.
- Fare buy-up more affordable.
- Supports ancillary attach-rate and spend.
Air Canada has been working with BNPL specialist, Uplift. The association has indicated that airlines considered this payment option as an alternative form of payment to start-off. And gradually, from being evaluated mainly by the payments team, the same has now stretched to marketing and revenue management as well.
One benefit is blending different sources of data. Other is cross-functional efficacy paving way for an apt offering for a traveller. Also, the focus has been on combatting fraud in a collaborative manner. Uplift has worked on a mechanism for taking care of fraud, and also work with the airline’s fraud team. Fraud is an issue for everyone (be it for a BNPL entity or a travel merchant), but it is better to fight it together.
By Ritesh Gupta, Ai Events
