Payment Systems: Automatic transmission Byline goes here
he travel payment systems sector is broad and increasingly competitive.
The automation of payments between suppliers and agents can offer travel businesses a range of efficiencies and productivity increases.
But there are a number of factors for both agents and suppliers to consider when choosing to automate payments.
Some systems – such as ITSS which Sabre Pacific markets exclusively in Australia – automatically remove funds from an agent's bank account when a supplier requests payment.
The agent does not authorise that payment.
Head of ITSS Craig Bowen said the fully automated system allowed both agents and suppliers to reap the maximum time- and money-saving efficiencies that payment systems offered.
He said the system also encouraged businesses to gain a better understanding of their cash flow.
Others, such as Amadeus-owned Moneydirect, require clients to approve the transaction before money is withdrawn from their bank account.
Business development manager Moira Scerri said Moneydirect allowed agents and suppliers to retain control of their cash flow.
“Agents know when someone has come in and paid for their ticket, and they know when the money is there, not the supplier,” Scerri said.
TIAS marketing manager Kristen Roach said the fully automated system ultimately benefited suppliers, who did not have to wait 30-plus days for settlement.
She said that while not requiring management sign-off on each payment, the TIAS system, TIPS, allowed agents to retain control of their cash flow, and also offered productivity gains.
“I don't think full automation is an absolute necessity at the moment,” Roach said. “Nor have I ever had someone say to us, we wont use TIPS because there's no facility for management to sign off on each transaction. I think sometimes people just invent functionality.”
She said there was enough security around most payment systems to ensure that bills were paid.
Increased competition in the travel payments sector prompted Bowen to push agents and suppliers to sign on to ITSS exclusively.
“Often when I speak to suppliers they have multiple payment systems, and with every extra system they have, they’re losing productivity,” Bowen said. “They think they have to because they have multiple people which they deal with, but they don’t. Suppliers only have to have one system.”
Bowen said suppliers should work closely with travel agents to educate them on the benefits of using that system.
“The reason (ITSS’ first Australian client) Sabre Pacific has been able to maximise its productivity is because they use only one solution,” Bowen said.
However, rival companies claimed that ultimately the market would decide whether agents and suppliers used more than one system.
Roach claimed franchised and wholly-owned agents were more likely to use one preferred system because they were likely to get a better deal.
“But suppliers will get paid anyway they can,” she said.
Scerri said encouraging businesses to use one system could be perceived under the trade practices act as third-line forcing.
“That’s a tactic that some might be using to try and remove us from first position,” Scerri said. “The tack we’ve been taking is to show that the functionality of our product is far superior.”
Bowen claimed ITSS offered users a more secure method of automating payments.
He said that unlike some competitors, such as new entrant eNett, funds transferred between clients by ITSS did not pass through a third bank account.
“There’s no risk of that third party going out of business and the funds being stuck in that account,” Bowen said. “When I talk to suppliers, it's amazing how many of them don't know that that could be a concern.”
The past year has seen the payment systems sector become increasingly competitive with the entry of new players such as ITSS and eNett.
Scerri said that as awareness of payment systems was growing, Moneydirect was changing its marketing strategy to encourage businesses to include automated payments as part of their business processes.
“Most people originally thought payment processing was just Internet banking,” she said, “but there’s been a mind shift, and people are starting to understand that payment systems are much more linked to business processes and can help you understand your business.”
18 January 2006
More News
Cendant TDS to re-brand as Travelport (19-Apr-2006)
Cendant Travel Distribution Services, parent company of Galileo, Orbitz and Gullivers Travel Associates (GTA), is changing its name to Travelport. more
Deciphering made easier (11-Apr-2006)
Travel industry research portal www.decipher.biz has been revamped with a new layout designed to make it easier for businesses to access information. more
Ex Continental chief to chair Cendant travel division (21-Mar-2006)
Cendant has named former Continental Airlines chief executive and chairman Gordon Bethune as chairman of its Travel Distribution Services (TDS) division. more
More News for Sabre Pacific Pty Ltd
Payment Systems: Moneydirect rolls out across the world (18-Jan-2006)
Amadeus-owned travel payment system Moneydirect has just been deployed in the Philippines and will this month be rolled out in France, the US and the UK. more
Technology Guide: Tools of the trade: a new range of solutions on offer (23-Nov-2005)
Travel technology suppliers are preparing to unveil a variety of new products, ranging from web booking engines to customer relationship management tools. more
Technology: Keeping agents up to speed (22-Nov-2005)
Providing agents with faster and easier access to all types of airfares is currently driving technology development in the travel industry. more
Travellers Choice chooses Sabre as exclusive supplier (22-Nov-2005)
Sabre Pacific has signed a four-year deal to be the sole preferred technology provider to Perth-based retail co-operative Travellers Choice. more
Sabre spells out retailer rewards (22-Nov-2005)
Sabre Pacific has unveiled details of its new ‘Sabre Returns’ loyalty program for travel agents, which forms part of the GDS’ strategy to increase non-air bookings. more
Web headline compulsory (26-Sep-2005)
Long Abstract compulsory more
Sabre initiative earns IATA preferred status (15-Sep-2005)
Sabre Airline Solutions has secured preferred partner status with IATA under its Simplifying the Business initiative. more
Sabre air division names new regional v-p (31-Aug-2005)
Sabre Airline Solutions has appointed Murray Sargant as regional vice president for Asia Pacific. more
