Maximizing Yields by Lowering the Cost of Payment Payment APG WorldConnect Monaco 25 October 2012 K. David Holmes, III Vice President, Global Sales
Mar 30, 2016
Maximizing Yields by Lowering the Cost of
PaymentPaymentAPG WorldConnect
Monaco25 October 2012
K. David Holmes, IIIVice President, Global Sales
Airline Operating Costs
7,8%
25,3%8,0%
7,3%
9,0%
2,6%
Aircraft operating costs
Employee costs
Engineering and other aircraft costs
Fuel and oil costs
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11,8%28,2%
8,0%Fuel and oil costs
Handling, catering and other
operating costs
Landing fees and en-route charges
Property, IT and other costs
Selling costs
* based on IAG, AF, LH 2011 data ** based on A4A data combined with US DOT P1.2 filings MY 2012
Airline Industry Operating Margin
0.6%0.6%
3Source: IATA
This is why the cost of payment matters!!!matters!!!
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About UATP
• Issued as a form of payment by 18 airlines• Accepted as payment by over 260 airlines,
rail carriers and select travel agencies
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2011
Charge Volume
USD 13B
+24%
Airline-Owned
UATP vs. Other Credit Cards
7
Why Do Airlines Accept UATP?
• Incremental Sales Volume
• No Joining Fees or Annual Dues
• Low Merchant Fees
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• Low Merchant Fees
• Easy Access to Alternative Forms of Payment
Why Airlines Issue UATP
• Reduce or eliminate Credit Card Fees
• Creates an incremental revenue stream
• Market Intelligence• Builds corporate
customer loyalty and market share
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• 100% web-based, hosted and supported by UATP
• Supports Data Feeds • Supports Data Feeds to ERP Systems
• Multiple Languages and Currencies
• System Evolves with UATP
1010
Supported DataStream Applications
• Standard Charge Accounts
• Prepaid Accounts• Prepaid Accounts
• Barter and/or Declining Balance
• Government Travel Management
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• Transaction Research Portal
• Web-based and supported by UATPsupported by UATP
• Airline and Corporate Customer Applications
• Standard and Custom Reports
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Why Issue UATP Now?
• New Models can be self-funding!• Industry is now focused on reducing CC
Fees– Since 2008, 12 new Shareholder/Issuers– Since 2008, 12 new Shareholder/Issuers
• Solutions are flexible, scalable, and quick-to-market
• New Product Enhancements Launching Soon
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Summary
• All airlines should be Merchants– No Fee to join, Low Merchant Fees!
• Airlines should consider the benefits of Issuing to help improve their yield per
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Issuing to help improve their yield per ticket
• UATP is eager to work with you on any payment-related issue
QuestionsQuestions
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