The airlines' distribution and payment space is undergoing rapid transformation. In part, this is being driven by the need to de-commoditize third party sales channels, to simplify and enhance the customer shopping and purchasing experience and to respond to changing consumer demands, particularly millennial shoppers who prefer mobile shopping and want peer-to-peer payment options.
On the other hand, demand for air travel is highly sensitive to changes in prices. Inefficient and burdensome tax measures that increase the cost of air travel have a negative effect on demand.
A number of initiatives and policies support airlines in addressing distribution, payment and taxation challenges:
Unlocking the Potential of Travel PaymentsDownload the new Travel Payments white paper (pdf) - historically considered a back-office cost center, Payment has recently taken on new importance.
From Airlines magazine
- IATA establishes modern airline retailing (Dec 2022)
- Imbalance in the value chain hurts airlines (Dec 2022)
- Payment: an enabler for value creation (Oct 2022)
- Examining the journey to customer-centricity (April 2022)