Page 86 - AAA JANUARY - FEBRUARY 2017 Online Magazine

COLUMN KRISTIAN GJERDING

Cashless Travel

As digital sales boom, all eyes turn to Asian Airlines for

trends in payments, booking and mobile-centric travel

igital travel is growing worldwide, • Are airlines and airports primed now for
and the Asia Pacific region will passengers who increasingly prefer to tap,
soon be leading the way, spurred swipe and pay from smartphones and mobile
Dby expanding mobile payment devices for purchasing tickets and travel
capabilities, a continued shift of travellers’ products?
activities to the mobile channel and • Are airlines’ legacy finance, e-commerce,
continued growth of the travel market across accounting and IT systems able to collect
China, India, Indonesia and the entire region. vast new revenue pools made accessible by
Sometime in 2017, according to the mobile payment capabilities?
latest findings from eMarketer, Asia-Pacific • Will APAC airlines be able to support
will surpass North America as the global innovation from Android, Apple, Samsung,
market leader in travel-related digital sales, Tenpay, Alipay and others as they push the
evidence of higher-than-average mobile- mobile payments envelope?
first transactions, behaviours and strategies
among Asian travellers, airlines and airports. Earlier this year, CellPoint Mobile
The role played by mobile payments worked closely with Google to make
in this fundamental travel shift cannot by eMarketer to grow 21% next year to Emirates the first airline in the world to
be underestimated, especially now that US$216 billion, will surpass North America roll out “Buy with Android Pay” capabilities.
major payment innovators and device at US$210 billion for the first time in 2017. Emirates passengers can now use the
manufacturers are rolling out and promoting Why? Travel is growing exponentially in international carrier’s mobile app to buy
an ever-changing array of options and China, travel bookings are shifting online in tickets via Android Pay.
capabilities – perhaps faster than some India, and increased connectivity and wealth As additional mobile payment solutions
airlines’ ability to support them. are spurring growth in Indonesia. These are rolled out by Apple Pay, Samsung
statistics raise important questions about Pay, Alipay, Visa Checkout, Amex Express
Mobile Travel in Asia: By the the region’s ability not only to lead but also Checkout, MasterPass, MobilePay,
Numbers to sustain the continued shift toward mobile- Facebook and WeChat, more airlines will be
Digital travel sales in APAC, estimated centric travel: forced to offer mobile payment solutions to
their travellers, not only because passengers
demand the functionality but also because
doing so enables carriers to collect more
revenues directly and more securely from
mobile marketplace.
By CellPoint Mobile estimates, tens to
hundreds of millions in revenues await in
the mobile channel from direct and ancillary
sales while Criteo’s 2016 “Travel Flash Report”
notes that 26% of airline and hotel bookings
in the first quarter of 2016 worldwide were
made on smartphones and tablets (excluding
apps) – with higher-than-average activity in
Japan (36%) and Australia (32%).
Mobile payment functionality offers a
significant advantage for carriers throughout
Asia, where mobile-first functionality and
activities are more commonplace than in
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