AN OVERVIEW OF THE VIRTUES OF ENETT VANs FOR AIRLINES.

RISK-FREE DISTRIBUTION AND NO AGENCY CREDIT LIMITS.

Agencies may operate two different models.

Travel agencies may use the merchant or agency business model, or a mix of both. For airline ticket sales, a travel agent using the agency model will collect credit card details from the end traveller and pass those card details through the GDS and BSP to the airline. In a merchant model, travel agencies collect funds from the end traveller, via the end traveller’s preferred form of payment, and make a separate payment to airlines, usually via BSP.

Travel agencies in a merchant model are still acting as an agent of the airline, but are the merchant of record for the purchase from the end traveller.

Travel agencies generally prefer merchant model.

Merchant model is preferred by travel agencies for distribution of air tickets because it allows for collection of payment from the end traveller in any form, lowers fraud risk across the value chain with the use of sophisticated fraud reduction mechanisms to protect travel agencies and
airlines, and delivers a better experience to the end traveller.

eNett VANs deliver guaranteed payment.

Some payment methods expose airlines to risks of travel agency default, which necessitates the use of credit limit definitions, monitoring, and enforcement.

These mechanisms are imperfect, as defaults still impact airlines and cause friction between airlines and travel agencies. Gaps in timing mean some exposure will remain even with proposed changes to limit risks.

eNett VANs are a risk-free payment method for the travel value chain and guarantee payment to airlines regardless of market, banking, travel agent, payment provider risk or any other event that normally impacts payment being received by the airline.

* Rate of fraud related chargebacks by number of transactions with eNett VANs Q1 2017-Q2 2018 when paying airlines. Exact rate in that time was 0.000003% or 1 in 30M transactions. The number of eNett VANs payments to airlines during the specified time period was not 30M. Total non-supplier default related chargebacks in the same period was 0.0013% or 1 in 80K transactions - most due to duplicate processing.

** Refers to pass through of a customer card.

eNett VANs Terms and Conditions apply. In Australia, eNett International (Singapore) Pte. Ltd. ARBN 161 362 661, AFSL 441376 (eNett) is not authorised to provide financial product advice other than general advice in relation to its own products. This document does not take into account your objectives, financial situation or needs. You should consider the appropriateness of the information in light of your own circumstances and the relevant Product Disclosure Statement before acting.

More Resources

28 June 2018

An overview of the impacts of airline failures.

The airline industry has contributed a great deal to the development of the tourism industry. However, due to various reasons, airlines are susceptible to failures*. This summary provides an overview of eNett’s latest research report, which explores the history and factors that trigger airline failures and best practices that travel agencies can use to mitigate impacts.

28 June 2018

eNett protects travel agencies from the impact of supplier default.

Monarch Airlines was the fifth biggest carrier in the UK – and in November 2017 became the biggest airline failure in British history. This case study demonstrates how eNett International helped to mitigate the impacts of supplier default for its travel agency customers.

Video: It pays to know fraud in travel payments

Why is travel susceptible to fraud, what is the impact to the industry, and what can be done to reduce the risk of fraud?

Why is travel susceptible to fraud?

Fraud costs the travel industry a lot. But what makes the industry susceptible to fraud and what exactly are the costs? And what are the ways that you can fight back against fraud? View this infographic to find out.

FRAUD IN TRAVEL PAYMENTS: IMPACT, RECOVERY AND AVOIDANCE.

The total fraud impact for travel companies is expected to exceed USD25B by 2020, with close to USD11B to be borne by Online Travel Agents (OTAs)1. That’s why reducing the risk of fraud was high on the agenda for Mr & Mrs Smith, an online hotel booking service specialising in small, boutique luxury hotels.

2017 Report: How the travel industry can benefit from a focus on customer and employee experience.

Explore how improvements in CX can drive business performance for travel companies. Through expert analysis on the benefits of improving both customer experience and employee experience, the insights in this paper are particularly relevant for leaders in the travel industry.

Tools: Measure the impact of Customer Experience on your business

Measuring Customer Experience (CX) may seem complex. We've built an easy to use calculator to help demonstrate how investing in CX could translate to the bottom line.

How CX drives business performance

How does customer experience drive business performance? What do travellers want, and how does this impact revenue? Find out more in this infographic.

LAND OF OPPORTUNITY: PAYMENT EXPERIENCE DRIVES CUSTOMER EXPERIENCE.

1-Click made the order payment experience a whole lot easier and increased conversions. We no longer needed to hunt down our credit card and enter the numbers. Enter our address. Or go through a bunch of other steps that added friction and frustration. So what does this have to do with travel companies?