Tailored Payment Experience
Despite significant growth in passenger numbers, profit margins in the airline sector continue to be squeezed. Consequently, the airline industry has responded in recent years by moving towards a ‘retail and merchandising model’. Ancillary services and products were primarily introduced to generate new revenue streams and potential effects on customer experience were considered secondary.
Airlines must now consider the overall payment experience for passengers and would be well advised to learn from the successes of their counterparts in the Retail Sector. eTailers (retailers who have embraced eCommerce), in particular, have benefited from tailoring a global website towards a local customer; it’s what we call glocalisation.
Fully Localised Solution
Fully localising an airline website means that the passenger should be able to book and pay for their tickets and ancillary services in their home currency, using their preferred payment method of choice. Multi-Currency Pricing (MCP) with appropriate payment gateway partners can enable your airline to provide this service to your passengers—in turn helping to increase sales, reduce checkout abandonment and grow overseas markets.
Booking in Preferred Currency
Complex travel requirements frequently result in passengers making journeys that originate outside of their currency zone. Because of IATA (International Air Transport Association) rules, all airline journeys are priced in the currency of the country of departure. Consequently, international carriers are already providing pricing and payment options for several currencies. MCP takes this to the next level by enabling passengers to book and pay for their tickets and ancillary services in their preferred currency. So, as long as the journey’s base price is in the currency of the country of departure, IATA rules are satisfied.
Driving the Payment Process
MCP can also be used to drive the payment process. It is readily available on the world’s leading card brands and there are more than 200 alternative payment types worldwide ranging from PayPal and Alipay to Sofort, iDeal and Poli. By offering a currency choice before the payment page, you can provide your customers with a finely tuned selection of familiar payment types appropriate to their country and currency.
The effort required to implement MCP on an airline website will vary by back office IT Provider as well as by the front-end website architecture. However, Fexco will be on hand to project manage and share both experience and knowledge of implementing complex solutions.
More Than Just a Web Solution
MCP isn’t just a web solution. It can also be implemented in mobile apps and airport kiosks which allow your airline to offer your customer’s currency of choice across all channels as well as during check-in. Lounges and in-flight point of sale devices can also be equipped with MCP or Dynamic Currency Conversion (DCC) to cater for additional payments from your passengers. Further, adding your passenger’s currency preference to their frequent flyer profile will allow you to offer currency-specific deals via email, app and online marketing channels.
New Revenue From an Existing Process
In addition to helping to increase sales, MCP is also a revenue generator. While improving customer service and transparency on final pricing, your business can also access a new revenue stream as your airline takes a fee for currency conversion. This is not an additional charge or fee for your customer; it merely replaces the fees that the cardschemes and card issuers would otherwise realise as part of the foreign exchange process.
For More on Fexco MCP for Your Airline
Fexco’s core competency is Treasury and Cash Management; we know that the world of currency conversion services, including MCP, can be daunting. We can arrange a call to go through the basics of MCP and the key factors that an airline should consider when choosing a currency conversion strategy for your payments.
Contact Fexco’s dedicated airline Sales Manager, Álvaro Diez, who has over ten years’ experience in the airline sector to discuss how Fexco’s MCP service can improve your passenger’s payment experience while also generating a new revenue stream: