Best of Breed Issuer Applications User Forum Miami, FL July 7-9, 2014

Transcription

1 Best of Breed Issuer Applications User Forum Miami, FL July 7-9, 2014

2 The Concept In response to many factors including customer demand and market realities, UATP has developed an in-house, hosted, and most importantly low cost processing solution including a flexible billing system and online portal for airlines interested in starting a UATP issuing program in a Web-based environment. 2

3 Solutions-based Approach No longer solely focused on corporate credit card cost reduction We enable airline payment solutions that: Improve airline cash positions Grow both consumer and corporate market share Modernize back-office processes Engender goodwill and improve customer loyalty

4 Non-Traditional Applications Theoretical Possibilities Use of UATP authorization system Processing of additional data Interline scenarios Alliance Partners, Other Air travel inward/outward facing situations Business Partner Relationships Practicality Test Added value / efficiencies possible with UATP Cost effective Implementation ease and speed to market 4

5 The Power of Data Confidential and UATP Proprietary 5

6 The Solutions

7 Models in the Market

8 United UATP Samples PassPlus and Newsletter

9 Prepaid Corporate Accounts The Issue: Aeroméxico was burdened by inefficient and expensive processes to maintain a prepaid corporate account portfolio. Also, their existing systems did not support multicurrency or multilingual billing so program growth was restricted to Mexico.

10 Prepaid Corporate Accounts The Solution: Aeroméxico became a UATP Issuer and migrated the existing Prepaid portfolio to the Network. The airline immediately reduced their internal operating costs while adding customer benefits such as online account access and reporting. UATP s DataStream platform also supported the international expansion of the program to China.

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14 Government Travel Solutions The Issue: In response to public demand for increased transparency in travel spending patterns, the government of Brazil launched an online portal that allows the public to view travel patterns of individual Parliament Members. Gol was required to supply the government with reporting on these transactions. Complying with this requirement was labor intensive and difficult to manage.

15 Government Travel Solutions The Solution: Gol used its UATP platform to track all of the Brazilian Parliament s spend via individual accounts. The data exporting features of UATP s DataMine allowed Gol to automate the reporting process and seamlessly provide content to the government s transparency portal. The UATP-based process has significantly reduced the time and effort needed for Gol to comply with the Brazilian Government s mandate.

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20 Vacations Program Processing The Issue: Southwest needed a way to process air ticket portions of vacation packages sold via their direct channel since their CRS needed payment approval codes for each PNR. Confidential and UATP Proprietary 20

21 Vacations Program Processing The Solution: Southwest became a Shareholder of UATP and obtained access to the UATP Auth system. UATP s Auth System now provides authorization codes on demand which Southwest uses to complete the ticketing process. UATP s innovation solved a complex and potentially expensive problem for Southwest. Confidential and UATP Proprietary 21

22 Distressed Passenger/Customer Service Recovery The Issue: A380 Groundings in 2010 and union-forced, system-wide groundings in 2011 required a customer goodwill recovery solution that could be launched very quickly.

23 Distressed Passenger/Customer Service Recovery The Solution: Utilizing existing UATP Infrastructure, Qantas created an electronic voucher that is issued to passengers. When processed, these vouchers run over the UATP Network. Because of UATP, Qantas was able to establish over tens of thousands of accounts in just two short weeks.

24 Distressed Passenger/Customer Service Recovery

25 Distressed Passenger/Customer Service Recovery

26 How does UATP feature on our website?

27 Above & Beyond Above & Beyond is a business loyalty programme designed to reward businesses for their total spend Aimed at businesses that spend between $20K to $500K per annum on flights using UATP as FOP Every $100 spent on Air New Zealand flights (on Air NZ aircraft) = 10 Business Travel Points Points accrued through the program are in addition to Airpoints and Status Points Customers can not be commercially contracted Points can be redeemed for a wide range of Air New Zealand products Points can be redeemed online or with our friendly team

28 Program Development Overview Best Practices

29 Build the Portfolio Launch/Post Launch Project Plan Components Credit or Prepaid & Other Accounts UATP DataMine UATP DataStream Marketing Training Channel / Selling Strategy 29

30 Evaluate UATP Program Current Credit Card Costs Current use of credit cards by Issuer Cost of Accepting other cards as payment UATP Economics: Cost Savings, OA Revenue Stream Various UATP Application Value Internal and External Management Tools Account Development Current and potential Market Analysis (UATP can assist)

31 Account Development Identify Current and Potential Subscriber Base: Current Direct Bill Accounts - Review active and inactive accounts Current corporate contracted accounts Frequent travelers (corporate and individual), loyalty base Barter Business Partners Marketing, Incentive and Promotional Accounts Vendors/ Service Providers/BOD Members Recurring group/meeting accounts, charter accounts, etc. Account Assessment: Analyze current form of payment usage by accounts/travelers Profile volume, yield and credit worthiness Consider options to assess credit risk using UATP Business partner MSC Prepaid and/or charge option (various sub-categories) 31

32 Account Development Internal Education: Sales force and customer touch points Roadshows for field sales team on UATP program benefits Collateral tools for sales team (FAQs, Overcoming objections) One page fact sheet on features and benefits of your program Provide sales leads generated from potential account analysis Marketing: Internal and external (e.g., Newsletters) Considerations: Who, what, where, when, why and how Incentives: Creative ways to recognize sales team that grow the program 32

33 Examples 33

34 Delta UATP Growth through Aggressive Prospecting Analyze: Evaluated entire CSA database in terms of account size and form of payment mix to determine target accounts Categorize: Identified which regions & sales account executives are responsible for opportunity accounts Educate: Participation in regional sales meetings to educate sales account executives on their targeted accounts and overall benefits of the Delta UATP program Sell: Participation in joint sales calls/meetings with Delta s sales account executives (and potentially UATP) ANALYZE CATEGORIZE EDUCATE SELL Grow Rev Base 4

35 Sales Team Reference What are the main selling points for the product: 1.Data Processing 35 Internal Use Only a.the data level for UATP accounts is Level Three which is the highest level with the most detail: i. Worldwide Level Three (B2B) provides: 1.Includes everything from Levels One and Two plus all of the following: 2.All of the itinerary details along with tkt issue date, tkt number, trvl date, routing info, class of service used, psgr name, tkt amount. It is applicable to any itinerary routing even international travel. a.no fee for this level of data no hidden agendas for data 1.No lost patches of incomplete data in different parts of the world that can be the case with different banks in providing data 2.Includes ancillary air fees where passed in transaction record to UATP to process ii.level Two ( primarily used for B2B) provides: 1.All of level one plus various merchant codes some corporate T&E provides this level iii.level One (primarily used for B2C) provides: 1.Merchant name, transaction amount and transaction date most c/c fcards provide this level 2.Low risk for fraud a.the card is only for air, Amtrak and La Quinta hotel chain and used mainly by corporate travelers vs. consumer b.if the plastic card is lost, it cannot be taken to convenient store to be used. Fraud can be very common overseas. c.american Airlines can issue the UATP account/ cards in three ways: i.plastic card generally for executive travel, VIP s and those who travel worldwide, i.e. engineers ii.ghost card most common use where account number is held with the travel agency or in the traveler s profile (e.g., Cliqbook, GetThere, Egencia, etc.) iii.combination of both if needed 3.No annual fee and easy to use a.works well with other credit cards with no additional cost with its use b.no annual fees, no set-up fees, no application fee, no reporting fees, no charge for plastic c.used only for air travel and Amtrak everything else remains the same 4.Automatic travel insurance a.automatic AD&D coverage provided to all travelers who use the account/card for air purchase b.two other higher levels of coverage is available for nominal annual fees

36 UATP Sales Tips Issue One Sales Tip #1 We already have a corporate card program in place. Gary K. Nelson UATP Sales Manager The AA UATP card doesn t displace an existing T&E card. The UATP account number is held with your travel agency of record, your travel manager or in the traveler s online booking profile. When your employees purchase an air ticket, the UATP card number will show to charge the air ticket to the card. Your employees will still use the existing T&E card for hotel and car rental charges. And what s great about the AA UATP card is that you ll receive itinerary level data on all your air travel spend.

37 Sustain and Grow UATP Program Front of Mind Awareness Joint Calls Customer Forums Newsletters Integrate UATP Program into airline marketing channels Surveys Ability to track and assess Data capture and reporting efficiencies DataStream and DataMine, current Issuer system Evaluate UATP program ROI: Account performance pre/post UATP Subscriber 37

38 US Airways UATP Incentive Kick-Off!!

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40 The ROI Value of Issuer UATP Program Total Issuer UATP Charge Volume $ 200,000,000 (On Us Sales) $ 50,000,000 (OAL Sales) TOTAL: $250,000,000 What this means: Distribution Cost Reduction to Issuer 1 : $3,500,000 Revenue Generation 2 : $810,000 Also, Issuer benefits by accepting other airlines UATP accounts as a FOP: OAL UATP customer volume on Issuer: approx. $101,500,000 Distribution Cost Reduction to Issuer 3 : $862,750 Annual Value of Issuer UATP: $5,172, Assumes an average MSF for other cards of 2.6% and an internal Issuer UATP program cost of 85 basis points per transaction 2. Issuer nets a commission of 1.62% when its UATP accounts are used to purchase travel on OALs 3. Assumes 2.6% MSF for other cards vs. UATP MSF of 1.75% (corporate passenger) 85 bps benefit 4. Assume a 2.5% MSF for other cards vs. PayPal inclusive rate of 2.0% (2.5% since it is not corporate) 40