Accepting payments has always been part of the cost of doing business in the airline industry. As a low-margin business, the opportunity to capture even 1-2% savings is big. But what if you could implement a better payment strategy that does more than reduce costs?
The best payment strategies support broad business objectivesย andย improve your bottom line. In addition to reducing the cost of accepting different forms of payment, they can also drive new revenue opportunities, boost operational performance, and improve passenger experiences.
โTraditionally, the airline industry is a low-margin business,โ said UATP president and CEOย Ralph Kaiserย in a recent interview. So, removing 1 or 2% from your payment optimization processes is very important to the bottom line.โ
Modern, flexible, scalable payment technology also creates new economies of scale for airlines, helping them attract more customers and do business with those customers faster and easier than ever before. However, airlines donโt have to become payment experts to reap these benefits. Instead, they can work with a trusted payments expert to transform their payment strategy and drive real results.
Read on to learn why yourย payment strategyย matters and how payment technology experts can help your airline get real value.
Six Payments Strategies Worth Tracking
- Processing payments is more complex and expensive than ever – streamlining transaction processes is critical.ย Thereโs been a shift in payments, where everything has a cost to process (even cash). Itโs getting more complicated and more expensive to process payments โ particularly as you look to scale and serve more markets. You must find ways to streamline integration, implementation, and processing to find cost efficiencies across your payment operations.
- Disruptions are costly but can be prevented.ย The last piece of distribution to reduce costs is payment. A robust payment network and infrastructure helps you proactively manage unforeseen payment disruptions.As distribution becomes more complex, airlines need to upgrade their payment technology and integrate new payment methods without causing disruption to their day-to-day operations. Optimizing payment processes to avoid unforeseen disruptions reduces costs and customer churn by helping customers transact quickly and easily without delay.
- Traveler behavior has evolved. Airlines must think of payments as their newest loyalty tool.ย Payments are also part of the loyalty equation between companies and incentives. Differentiating your brand with convenient, efficient payment options builds customer loyalty. Airlines can drive loyalty and improve the customer experience through personalized payment offerings. Delivering positive customer payment interactions is essential, from purchase transactions to refunds when cancellations occur.
- Cast a wide net, but be specific to markets. Payment solutions must be tailored to each market.ย Itโs nearly impossible to keep up with regulations and customer preferences in hundreds of markets โ you need a payments platform and expert already entrenched in each market. What works in one market doesnโt always translate to another, so your payment strategy must be tailored specifically for different countries and their unique regulatory markets. Travelers want to use their preferred payment type, and payment experts already know the most widely used methods in that region.
- Accepting more forms of payment to drive growth in new markets.ย You must be able to connect to hundreds ofย alternative forms of payment(AFPs) to complete more transactions for more customers. This is undoubtedly complex, but airlines can benefit from travel-specific payment partners to streamline the complexities of payment distribution and reduce the cost of accepting payments. These experts can also help you manage and reduce chargebacks, fraud, and other costs.
- Evaluate how you can improve payment optimization โ a significant factor in achieving profitability.Whether it be lowering costs through payment optimization, technology integration, reducing payment processing costs, or implementing lower-cost forms of payment, every percentage point matters. Working with the right partner who understands the economics of travel payments can employ all these strategies to maximize your efficiency, experience, and cost savings.
UATP: A Trusted Partner in Payments Optimizationย
A dedicated payment strategy enhances broader objectives, such as reducing costs, driving efficiency, optimizing processes, and solving complicated distribution challenges with enhanced payment technology. Airlines can unlock new revenue streams by adopting a comprehensive payment strategy, which will also enhance operational performance and elevate passenger experience.
There are several benefits to partnering with UATP to orchestrate complex payment solutions. To start, organizations work with a team that understands their industry, and the important role payments can play in helping them accelerate expansion into new markets, increase operational efficiencies and reduce costs, and automate manual and error-prone tasks for streamlined processes. UATP also helps its partners simplify payment acceptance and replace manual, unreliable, fraudโand error-prone payment processes.ย Read more benefits here.
In 2024, when customers and businesses will use more forms of payment, a payment strategy is imperative for customer acquisition, retention, and revenue strategies. As organizations look to chart a course toward sustainable growth and success in the airline industry with a more focused payments strategy, having a trusted partner is critical for navigating payment complexities and optimizing payments.
