Maximizing Yields by Lowering the Cost of Payment APG WorldConnect Monaco 25 October 2012
K. David Holmes, III Vice President, Global Sales
Airline Operating Costs Aircraft operating costs Employee costs
2,6% 9,0%
7,8%
Engineering and other aircraft costs
7,3% 25,3%
8,0%
Fuel and oil costs
28,2%
11,8%
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
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Airline Industry Operating Margin
0.6% Source: IATA
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This is why the cost of payment 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
2011 Charge Volume
USD 13B +24%
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Airline-Owned
UATP vs. Other Credit Cards
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Why Do Airlines Accept UATP? • Incremental Sales Volume • No Joining Fees or Annual Dues • Low Merchant Fees • Easy Access to Alternative Forms of Payment
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Why Airlines Issue UATP • Reduce or eliminate Credit Card Fees • Creates an incremental revenue stream • Market Intelligence • Builds corporate customer loyalty and market share 9
• 100% web-based, hosted and supported by UATP • Supports Data Feeds to ERP Systems • Multiple Languages and Currencies • System Evolves with UATP 10
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Supported DataStream Applications • Standard Charge Accounts • Prepaid Accounts • Barter and/or Declining Balance • Government Travel Management 11
• Transaction Research Portal • Web-based and supported by UATP • Airline and Corporate Customer Applications • Standard and Custom Reports 12
Why Issue UATP Now? • New Models can be self-funding! • Industry is now focused on reducing CC Fees – Since 2008, 12 new Shareholder/Issuers
• Solutions are flexible, scalable, and quickto-market • New Product Enhancements Launching Soon 13
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 ticket • UATP is eager to work with you on any payment-related issue
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Questions
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