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Mobile bookings for airlines on rise

Mobile bookings for airlines on rise
20 Dec 2013

Mobile payment is becoming increasingly important for airlines, according to research published this week. 

A new whitepaper called 'Alternative Payment and Distribution Landscape: Airlines and Alternatives - The Facts' compiled by WorldPay reports that more than half (57%) of airlines believe mobile has the greatest potential to drive revenue over the next two years. 

In the past year, acceptance of mobile payments has grown to 25%, up from 10% in 2012, and 86% of airlines are now offering discounts or rewards to customers using alternative payment methods to credit cards - an increase of 33 percentage points from 2012. 

Moving forward, a third (32%) of airlines are planning to offer mobile payments in the next two years, with e-wallets (29%) and online bank transfers (29%) also in the pipeline. 

Dubai-based carrier Emirates is one of those to have already embraced mobile technology. However, its vice-president of financial services Chris Chandler said that it won't be resting on its laurels: 'We currently accept payment through mobile devices through the mobile version of the website, and plan to accept all payment types on all devices in the future.'

As a result of these innovations, Mike Parkinson from WorldPay believes that mobile will become the go-to device in the airline industry. 

'Over the next two years we can expect to see significant developments in this space, with new innovations in the ways consumers purchase tickets and services via mobile devices from airlines,' he commented.

'In the future, services offered via a mobile device will become inherent to the airline experience from booking to check-in.'

Offering alternative payment methods to credit cards brings benefits to both customers and the airlines by increasing convenience, reducing the cost of transactions and lowering the rates of fraud.

'Airlines have long been reliant on credit cards as the primary payment type offered but they are increasingly embracing the implementation of alternative payment methods,' added Mr Parkinson. ADNFCR-408-ID-801675275-ADNFCR

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