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Airline Distribution & Finance News
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10 December 2021

Payment Readiness Guide for Airline Retailing

Following the “Airline Payment Framework” document that deals with Strategy and Channels Policies, the “Payment Readiness Guide for Airline Retailing” document is intended to guide the Airlines who need to start their Retailing journey in indirect Distribution or to scale it up with their payment implementation.

Earlier in 2021, and after witnessing the rise of NDC implementation in addition to airlines statements confirming the importance of their Airline Retailing transformation programs, the Payment Method Working Group (the PMWG) realized the need to provide guidance to the industry about the payment aspects to consider for this channel.

The objective of the Payment Readiness Guide for Airline Retailing document is to assist Distribution, Payment, and Finance teams on how to efficiently implement payments in the world of Offers and Orders, as implementing state of the art payment capabilities will help Airlines to maximize value creation from their Airline Retailing strategy (Airline retailing: The value at stake - by Mc Kinsey – November 26, 2019 Report).

It explains the important aspects of Payment in Airline Retailing for Indirect Distribution, and the specifics of this new distribution channel where airlines may have a better control of their offers and of their payments.

It also describes the main differences between a multilateral and mutualized framework, compared to a bilateral model where the airline needs to assume more responsibilities in the facilitation of its partnerships.

Payments are an integral part of the Distribution transformation. Without an efficient payment strategy adapted to their Distribution strategy, followed by a thorough review of their payment and commercial partnership models, Airlines may not realize the expected benefits of Distribution transformation.

Where can airlines find the Payment Readiness Guide for Airline Retailing document?

This document is intended for airlines only and have been published in the “Payment Methods Working Group - Knowledge Sharing Community”. Already, 150 different airlines’ staff have access to the Community. Should any airline be interested in joining the Community or on-board additional members of their staff, please refer to the Community onboarding & user guide (pdf).

On 22nd February 2022, IATA will host a dedicated airline webcast session focused only on the Payment Readiness Guide for Airline Retailing. Airlines can select their preferred time slot and register here.  

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