4th September 2023
How to support liquidity, mitigate risk and improve the experience of a traveller when it comes to payments were discussed in detail at the #ATPSAPAC held in Bangkok last month.
It is time to view “payment as a revenue enabler,” highlighted Nium’s Spencer Hanlon. Are airlines and travel suppliers ready to look at payment as an opportunity – look at P&L target, revenue target, not just as a cost?
Airlines were asked to elaborate on issues that they are facing today. One of them was the delay in receiving payments, more specifically their terms with acquirers and how the same can be improved for relatively “smaller-sized” airlines. Companies like Nium have highlighted that on the operational side, a number of stakeholders that airlines are associated with for payments result in “extra reconciliation work for finance teams alongside the burden of transaction costs”. In this context, as also indicated by McKinsey & Company in its report last year, “many airlines do not strategically monitor payment and transaction data, and there is an absence of defined roles or KPIs in the area”. So airlines must continue to delve into facets that can not only help them in reducing the cost, but how all of this can prepare them better for improving the bottom line.
Elavon’s Yang Li urged the airlines to focus on missing data (departure date), downgrade report, pricing data and breakdown, and reconsider routing of transactions and locations post-Brexit.
Other aspects:
- Shielding B2B transactions across from fraudulent payments
- Streamlining back-office tasks, reducing the reconciliation process
- Automation
B2C payments
Tania Platt, too, acknowledged that payment as a discipline can contribute a lot more, including in revenue generation. Looking from a consumer’s perspective, there are areas where they seek more transparency, for instance, a desire for more transparent pricing, the option to pay in their preferred currency and also more clarity over FX and related charges. It is time to look at factors that still are of concern to travellers, and how travel merchants and their partners can take care of the same to improve acceptance and the overall conversion rate.
Jamie Fu also spoke about the consumer journey. “…- we have the benefit of seeing the consumer behaviour at various levels – grocery store, hotel stay etc.,” she said. Jamie mentioned that travellers are looking into booking experiences that are unique, and merchants must delve into what they are looking for and ably venture into offerings that are deemed valuable and facilitate convenience. As the core offering improves, ensure the link between CX and payments isn’t overlooked. Each touch point presents an opportunity to capture additional revenue, and for the same capitalize on the power of digital.
By Ritesh Gupta, Ai Events
