cent of airlines in 2013 offered discounts or rewards for customers using alternative payment methods to credit cards; an increase from 55 per cent in 2012.
Mike Parkinson, vice president, airlines, WorldPay, said, “Airlines have recognised the revenue opportunities of mobile, and are now focused on improving their mobile offering. Over the next two years we can expect to see significant developments in this space, with new innovations in the ways consumers purchase tickets and services via mobile devices from airlines. In the future, services offered via a mobile device will become inherent to the airline experience from booking to check-in.”
The biggest challenge for airlines implementing alternative payment methods without external assistance is the lack of integration with current systems and processes, followed by the cost of implementation (39 per cent).
Maarten Rooijers, senior manager e-payments, KLM, said, “Direct integration with a payment type is too complex both from an IT aspect as well as from an accounting and reconciliation perspective. The complexity increases if you, as an airline, want to implement more alternative payment options. Therefore we work with expert payment service providers to manage this connection on our behalf.”
However, 88 per cent of airlines believe enabling alternative payment methods is critical for revenue growth.