World Passenger Symposium - · PDF fileWorld Financial Symposium 2014 World Passenger...
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World Passenger Symposium 2017World Financial Symposium 2014
World Passenger Symposium 24 – 26 October 2017
Centro de Convenciones Internacional de Barcelona (CCIB)
World Passenger Symposium 2017World Financial Symposium 2014
Distribution and PaymentChange is in the Air!
What Will it Really Take to Change?
World Passenger Symposium 2017World Financial Symposium 2014
Pascal Burg Director, Edgar, Dunn & Company
Distribution and Payment Change is in the Air! What Will it Really Take to Change?Get Ready for the NBD (the Next Big Disruption)!
Pascal Burg | Director at Edgar, Dunn & Company © Edgar, Dunn & Company, 2017
Get Ready for the NBD
(Next Big Disruption) !
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Payments
Card acceptance
costs
Fraud losses
Cash-flow
Risks
Reach
Revenue
“Payments” has multiple impacts on an Airline’s business
Payments impact both sides of the P&L
of an Airline
Alternative forms of payment to unlock specific segments (e.g. Alipay, WeChat Pay)
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“We have such a big percentage of Chinese passengers on many of our
China flights. And Alipay is something they are familiar with. We have the wifi on board on all our wide-body aircraft so that you can use Alipay.
What we’ve seen is up to 200 percent sales increases on board.”
Finnair CEO Pekka Vauramo
Installment options (buy now, pay later) in specific geographies
Fully automated installment payment via Etihad.com
Installment ranging from 3 to 60 months
Involves 17 African banks
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Klarna is a Swedish e-commerce company that provides payment services such as installments for online sales
High adoption in some northern and western Europe countries
Two examples: Etihad in Africa and SAS in Nordics
Creating new point-of-payment (e.g. via kiosks, tablets)
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“Verifone and SITA are first to enable integrated, scalable, and highly secure payment acceptance
at Airports Worldwide”
Example of mobile POS
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SCTinst (Instant SCT), an instant bank transfer system, will let people and businesses send money anywhere in the euro area within seconds
Emergence of Instant Payments in Europe …
SCTinst will start from November 2017
Real-time money transfer via banks 365 days a year, in 34 European countries
Current limit: within 10 seconds for transactions less than 15,000€
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Open Banking*
…and of “open banking” driven by the PSD2 (enabling third parties to access the customer bank account with their consent)
* Also known as “access to account”
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Transparency in Payments: provides transparency / control for each Airline related to Alternative Transfer Methods (e.g. Agent’s VANs)
Enrollment of Alternative Transfer Methods
Upfront validation
Post-ticketing monitoring
Individual Airline consent to accept
1. Transparency
3. Transaction validation
Bilateral discussions
If pattern of abuse: arbitrary party
4. Infringement
2. Airline consent
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NewGen ISS: to deliver a more secure and customer-centric Passenger Agency Program
Remittance Holding Capacity
Global Default Insurance
Agency Accreditation Models
IATA EasyPay
$
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NDC’s future agenda
Priorities for NDC payments
1. Work in progress to fine-tune message content
2. Fine-tune workflows (e.g. 3D Secure)
3. Fine-tune technical solution for non-card based AFOPs
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Phase 1 360° payments
diagnostic
What are the priority issues?
Phase 2 Payments strategy
Example: Which FOP to accept?
Phase 3 Payments optimization
Example: WhichNDC process?
A three-phase approach for Airlines to optimize payments
Edgar, Dunn & Company is an international management consultancy focused on payments
Edgar, Dunn & Company (EDC) is an consultancy set up in 1978 with offices in North America, the EU and AP
Focus solely on payments
Deep expertise in over 25 countries including Australia, France, Germany, Turkey, UK, USA, etc.
We help merchants such as airlines to optimize payment- related revenues and costs
Travel practice since 2002: clients include airlines, travel agencies, rail operators, hotel chains, etc.
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London
Sydney
FrankfurtParisSan Francisco
Edgar, Dunn & Company1 bis rue du Havre75008 ParisFrance
Tel +33 1 40 07 92 24Mobile +33 6 79 37 55 47
Pascal BurgDirector
Istanbul
World Passenger Symposium 2017World Financial Symposium 2014
Moderator: Paul Tilstone, Managing Partner, FESTIVE ROAD and Board Director,Panelists: Bill Brindle, COO, Hogg Robinson Group Holger Taubmann, Former Senior VP of Distribution, Amadeus Gareth Williams, CEO & Founder, Skyscanner Diane Lundeen Smith, Global Travel Sourcing Manager, Microsoft
Distribution and Payment Change is in the Air! What Will it Really Take to Change?Panel Discussion: But Where are the Elephants?
World Passenger Symposium 2017World Financial Symposium 2014
But Where Are The Elephants?
Paul TilstoneManaging PartnerFESTIVE ROAD
World Passenger Symposium 2017World Financial Symposium 2014
But Where Are The Elephants?
Holger Taubmannex – SVP Distribution
Amadeus
Bill BrindleCOO
Hogg Robinson Group
Diane Lundeen Smith Microsoft & Travel Manager
Advisory Group
Gareth Williams CEO & Founder
Skyscanner