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11-Nov-2016 6:05 PM

CAPA Asia Aviation Summit and Corporate Travel Summit, 15-16 November at Singapore's Capella

Analysis

CAPA's annual Asian aviation two day event, covering all of the region's big issues as well as a full day of corporate travel content, running in parallel with the first day.

The event will be attended by over 100+ airline delegates, including a dozen CEOs; 90+ corporate travel executives. CEOs and high level speakers will discuss matters like The future of the full service model in Asia; Powering Business Advantage for Airlines: Is big data a panacea?; The China Opportunity, Transforming aviation & tourism; Inside Airline JVs - How do they work and how to extract most value from them?; What do the emerging LCC alliances mean for Asia?; The next big leaps in airline and travel distribution;Understanding the payments landscape in Asia - the perceived challenges and the current reality of what's possible today in payments; Can LCCs and Premium Economy really drive air spend savings?; and many more.

Don't miss Singapore's high level aviation event of the year!

Summary
  • CAPA's annual Asian aviation event will cover a range of topics including the future of the full service model in Asia, big data in the aviation industry, and the China opportunity in aviation and tourism.
  • The event will feature over 100 airline delegates, including a dozen CEOs, and over 90 corporate travel executives.
  • The Trump administration's impact on Asia and the TransPacific Partnership will be discussed, as well as the future of open skies agreements.
  • The outlook for the Asian aviation market will be examined, including the challenges and opportunities for airlines in the region.
  • The event will also feature discussions on airline joint ventures, the emergence of low-cost carrier alliances in Asia, and the next big leaps in airline and travel distribution.
  • The CAPA-ACTE Asia Corporate Travel Innovation Summit, running in parallel with the aviation summit, will focus on payments and expense in corporate travel, disruptive innovation in the industry, and the future of fintech in corporate payments.

Tuesday 15 November 2016

CAPA's Asia Aviation Outlook:

The Trump Effect: Impact on Asia?

The TransPacific Partnership: Ironically - given Mr Trump's hard line against China - failure to proceed would please Beijing, which has reportedly felt threatened by the liberalisation of parallel trade flows that the TPP would produce, largely excluding China.

In itself the TPP has no direct bearing on aviation, but from its relaxation of barriers the trade ties generally could be anticipated to stimulate much higher air traffic flows, perhaps adding another 5-10% to existing services and underpinning new route development. These will be lost to the industry, seemingly regardless of who became President.

Open skies: Following a lengthy softening-up process by the US over the past year, seemingly against any foreign airline that might threaten the status quo, a Trump administration may well revive that populist course.

The publicity that the Big Three airlines' 'White Paper' attracted globally has created a belief outside the US that open skies is a thing of the past; that liberal attitudes to air access have passed their zenith. Mr Trump's ascension may be seen by many as a signal to revive that movement and a confirmation that these attitudes are mainstream. On the other hand he is a pragmatic businessman who will perhaps be influenced by his new advisers.

The regional outlook

A broad review of the current state of competition, new entry, the growing role of Chinese airlines and the state of the market generally. Where is it heading?

Panel Session. The Outlook: 'One Asia, Many Asias' - and the challenge to growth

Asia is a dynamic region and its airlines exhibit remarkable diversity. They must do so if they are to satisfy the complex and varying needs of the fastest growing large market the world has ever seen. There is simply no precedent for what is happening in Asia. This makes life extremely complex for airlines, airports, leasing companies, financiers and other aviation related organisations.

The privately held airlines' quest for profitability has been aided by lower fuel prices, but intense competition and rising capacity are keeping a lid on gains. Despite Asia Pacific's high growth rate, and vastly larger order books, for airlines it is among the least profitable regions in the world.

This partly reflects individual "strategic" needs to plan for rapid expansion, but also the effects of recent new entry; there are now over 50 LCCs in the region, few of which existed a dozen years ago.

At the same time there remain some airlines which are still government supported, with very different planning horizons.

  • How to grow profitably in an environment when growth strategies vary so widely?
  • What risk minimisation strategies are available to investors, lessors and financiers in such a turbulent market?
  • Where is the region's industry heading?
  • Airline Groups, independent LCCs, new entrants
  • The China market outlook

Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison

Panel:

Some recent CAPA Asia Pacific Analysis:

AirAsia Group to accelerate growth in 2017 with more deliveries, India push and Japan launch

The AirAsia Group is planning to accelerate expansion in 2017, with several additional deliveries. The short haul LCC is bullish on its prospects for 2017, particularly in India, Indonesia and the Philippines which are on course to achieve profitability by the end of 2016.

The group is also hoping to benefit from more favourable conditions in its original home markets of Malaysia and Thailand. While AirAsia has remained profitable at a group level over the last two years it has been impacted by relatively challenging conditions in Malaysia and Thailand and steep losses in India, Indonesia and the Philippines.

The group's fifth joint venture, AirAsia Japan, is now slated to commence operations in 1Q2017. Japan will help drive a new phase of growth after a hiatus from fleet expansion over the last two years.

Thai Airways SWOT: opportunities for growth, but challenges as competition further intensifies

Thai Airways is approaching a critical juncture as it completes a restructuring and seeks to resume growth. Its home market offers opportunities and an envious growth rate, but intensifying competition creates challenges.

Thai Airways is sandwiched between rapidly expanding low cost airlines and ambitious Gulf airlines. Its multi-brand strategy has so far proven to be a less than sufficient response.

In this SWOT analysis CAPA examines the Thai Airways Group's strengths, weaknesses, opportunities and challenges.

China-Japan: Peach, Jetstar Japan & China United the latest LCCs to enter Asia's 3rd largest market

Japan-China is the third largest international country pair in Northeast and Southeast Asia. The market has expanded due to Chinese outbound visitor growth, with Chinese visitor numbers doubling from 2.4 million in 2014 to 5.0 million in 2015, and 9M2016 shows a further 30% expansion. LCCs account for approximately 10% of the market, and there are an expected three further LCC entrants in the Japan-China market: Peach Aviation, Jetstar Japan and China United Airlines. Their entry, however, comes after the major boom: eight airlines have entered the market since 2014.

The impact of the additional LCCs will be minimal in network size: Peach's four weekly Osaka-Shanghai flights are in addition to an existing 117 weekly flights. Over the long term there are strong opportunities for LCCs (as evidenced by the first mover Spring Airlines), but in the near future the greatest impact from additional LCCs will be in reminding Chinese full service airlines of alternative business models and their own need to reform. To a Chinese airline a Japanese LCC is almost paradoxical: an airline trying to be low cost in a high cost country with low population growth. Yet the relative success of Japanese LCCs provides a case study - and also market challenges.

Hong Kong Airlines becomes larger in Japan than in China: overlap with sister HK Express

The rapid growth of mainland China's HNA Group is resulting in companies being added ahead of integration. HNA's two Hong Kong-based airlines, Hong Kong Airlines and HK Express, are increasingly overlapping with each other. That their roles are undefined and uncoordinated risks the two fighting each other - rather than combining their different propositions to address multiple segments of the markets.

Hong Kong Airlines is rapidly growing in Tokyo and Osaka, and launching a new service to Seoul Incheon - its 11th new destination in 2016. These are strong O&D markets and present a change from Hong Kong Airlines' previous staple of connecting traffic from mainland China over Hong Kong, or competing mainly against Cathay Pacific in key regional Asian markets from Hong Kong.

Following Hong Kong Airlines' entry to Tokyo and Osaka it will further increase services to the point where Japan becomes a larger market for it than mainland China. This is of some concern given Hong Kong Airlines' still evolving strategy for Japan, and weakening of the market through the appreciation of the yen.

China-UK air service agreement permits growth as Chinese airlines constrained in most other markets

An agreement between China and the UK to more than double their air service agreement is good timing for both sides. Chinese airlines are finding an imbalance: they are taking delivery of widebody aircraft and more Chinese airlines are flying long haul but traffic rights to major markets - the US, Canada, Germany and France - are becoming depleted. Negotiations to add traffic rights have not succeeded, typically due to the foreign side being concerned about accessing Chinese slots or Russian overflight rights.

The agreement with the UK to expand the number of weekly passenger flights from each side from 40 to 100 reflects considerable pragmatism on the part of the UK: British Airways and Virgin Atlantic are not growing in China, and China is a large growth opportunity. The UK has lagged on Chinese tourism. It was only in 2015 that China became the UK's largest inbound market.

China Southern to add 20 787-9s in first phase of refleeting as it prepares long-term hub strategy

To Shenzhen, or not to Shenzhen? That is a question facing China Southern Airlines as it prepares its long term hub strategy: whether the Guangzhou-based airline should continue growing in the nearby city of Shenzhen, or should concentrate its southern hub exclusively in Guangzhou.

In the upcoming peak season Guangzhou will account for 85% of China Southern's long haul departures. That includes, for the first time, 20 intercontinental Guangzhou departures in a single day. Shenzhen is part of China Southern's catchment area, but Shenzhen Airlines and its majority owner Air China plan to expand in Shenzhen, and competition continues in nearby Hong Kong.

As China Southern weighs its Shenzhen presence, and awaits regulatory clarity on where it can grow at the new Beijing Daxing airport from 2019, the airline intends to take 20 787-9s in the compact period of 2018-2020. China Southern operates 10 -8s, while its sister company Xiamen Airlines is due to receive its first -9 in Dec-2016. China Southern's 787-9 order puts long haul aircraft back on order at Asia's largest airline. A later aircraft order will provide China Southern with post-2020 growth capacity.

Keynote Addresses followed by Q&A

Putting the customer as the center, by starting a little closer to home - Issy Sharp, the founder of the global Four Seasons chain of upscale hotels made the most simple of all realisations; he was in the "hospitality" business - a daily challenge of surprising and delighting guests. Whilst the customer was placed at the heart of the business, recognising that the delivery of the Four Seasons' experience relied upon a community of engaged, motivated and culturally-connected employees. Today, technology continues its advances throughout the travel and hospitality industries. What innovations will shape the future - and how do we benefit from these trends to ensure the customer remains at the centre of everything we do.

Panel Discussion: The future of the full service model in Asia

  • Can the full service airline model survive in Asia, amidst rising low-cost long-haul penetration and adoption and pressure on corporate travel?
  • Will multi-brand Airlines Groups dominate Asia within five years?
  • New entrants have reduced cost bases, government backing and financial support. How to compete - or is it time to reinvent the full-service airline business?
  • Should airlines keep buying aircraft?
Moderator: CAPA - Centre for Aviation, Managing Director, Stephen Pearse
Panel Members:
  • ANA, Senior Executive Advisor to the Chairman, Keisuke Okada
  • DVB Bank, Senior Vice President Aviation Research, Albert Muntane Casanova
  • Hong Kong Airlines, Assistant Director Commercial, Michael Burke
  • Malaysia Airlines, CEO, Peter Bellew
  • Philippine Airlines, Senior Financial Advisor, Ian Reid
  • Qatar Airways, Senior VP, Aeropolitical & Corporate Affairs, Fathi Atti

Powering Business Advantage for Airlines: Is big data a panacea?

As the Asia travel market enters maturity and growth rates ease differentiation between airlines (and their hubs) comes into sharper focus. Travellers in Asia also have expectations of a high quality experience.
Airlines meanwhile sit on vast quantities of potentially valuable customer data, but developing the analytics to improve decision-making capabilities is the big challenge.
Personalisation of messaging and collaborating with the right partners is vital. We navigate the opportunities and risks ahead in this session.
Moderator: CAPA - Centre for Aviation, Managing Director, Stephen Pearse

Panel Members:

  • Adara, VP Sales, Asia, Jonathan Hardy
  • Amadeus, Global Head of Sales & Commercial Travel Intelligence, Didier Mamma
  • HK Express, CEO, Andrew Cowen
  • Sabre, Head of Sales & Business Development, Asia Pacific, John Chapman
  • SITA, President, Asia Pacific, Ilya Gutlin

The China Opportunity, Transforming aviation & tourism

China, thanks to its vast population, has already reshaped tourism goals of many destination countries, with over 50% year on year increases in some cases. But China will also reshape the way the aviation industry works - for example with multiple interest tourism and travel equity acquisitions, usually linked to China's expected tourism expansion.
And as China's airlines proliferate they are opening new gateways.

The growth of China's airlines internationally has been based on mostly outbound traffic flows and has meant sometimes large influxes of new capacity in several markets.
As well as being mostly outbound, traffic is typically low yielding and seasonal, making competition for foreign airlines difficult. Subsidy at national and local level also helps distort the market in the short term.

Many foreign carriers are seeking partnerships, even acquiring equity, but the big three, Air China, China Eastern and China Southern, are often ambivalent, able to flex their muscles and exercise choices.
Meanwhile, there is a flourishing body of new entry from low cost airlines, led by the highly successful Spring Airlines.

  • Which are the markets Chinese airlines will target for growth?
  • Will other airlines/travel groups seek equity purchases globally?
  • How important will LCCs - short and long haul - be in China's tourist expansion?
  • What are China's airline partnerships likely to look like in 2025?
  • "One belt one road" connectivity. Aviation could play an enabling role, but how big will the impact be?

Moderator: The Chinese University of Hong Kong, Director of Policy, Aviation Policy and Research Center, Dr. Law Cheung Kwok

Panel Members:

Executive Q&A: Inside Airline JVs - How do they work and how to extract most value from them?

There are more JVs involving Asia than any other market. Yet these JVs range significantly in scope of markets and cooperation. This discussion explores how airlines see the strategy, value and potential of JVs. This includes the level of cooperation of JVs, from JVs where one airline flies all intercontinental flights (Singapore Airlines-SAS) to JVs with anti-trust immunity (ANA-United, JAL-American). JVs with Chinese airlines are growing but are still at an early phase.
  • What's the difference between a revenue-sharing and profit-sharing JV?
  • Are airlines interested in region-to-region JVs like those across the Atlantic or do partners have different interests? Is it a regulatory problem?
  • Asian airlines are typically bigger on intercontinental routes than their foreign peers, but worry a deal may be unfair as their more experienced partner cuts a perceived better deal. How do airline relationships need to evolve to support JVs?
  • What is the role of global alliances? Can they accommodate JVs between members and non-members? What happens when a member is excluded from a JV between other members, or that JV precludes a participating member from codesharing with a member not in the JV?
  • Can there be regional JVs?
  • What is the risk of North America-Asia JVs overlapping with North America-Europe JVs for beyond markets, such as India?
Moderator: Seabury Airline Consulting, Partner, John McCulloch
Panel Members:

Some recent CAPA Analysis on JVs:

Emirates-Qantas JV expands as partnerships become more intricate, while some airlines go it alone

Qantas and Emirates are again evolving global airline alliances and partnerships. Four years after announcing their landmark joint venture, Qantas in late 2016 is expected to disclose additions to the way it serves Europe in partnership with Emirates. The possible changes - a new nonstop London flight, reintroducing an Asian stopover - may seem incremental. There is a significant impact to the many airlines competing in the Europe-Australia market, but the underlying relevance is global.

The expansion of the JV would not be possible without the increased comfort that Emirates and Qantas feel toward each other, and their ability to have intricate models for handling the increasingly complicated partnership and number of hubs involved. JVs are no longer in a binary classification of existence or absence; there is a scale from rudimentary to near-consolidation.

As JVs like Qantas-Emirates become more sophisticated, the basic JVs - or even airlines without - are dearly lacking. There has been a profusion of JVs in recent years, with more on the way, but they have tended to be confined. Partners need to be more comfortable with each other in order to add additional airlines and markets, later consolidating as they stitch together individual partnerships.

Panel Discussion: What do the emerging LCC alliances mean for Asia?

Alliances between LCCs are proliferating, further hybridising the model in Asia.

Moderator: KPMG, Global Head of Aviation, James Stamp
Panel Members:

Some recent CAPA Analysis on LCC alliances:

HNA Group: four airlines form U-FLY Alliance, world's first LCC grouping, showing HNA consolidation

China's HNA Group was expansive even before the deals it has made over the past year, where it acquired stakes in various companies including Brazilian airline Azul, the lessor Avolon, the ground handler Swissport and the ride-sharing service Uber. The group became wider but still fragmented, with the companies hardly stitching together to deliver synergies, or at least to avoid competitive overlap.

That will start to change with four HNA airlines forming the world's first LCC alliance, the U-FLY alliance. They operated 67 aircraft at the end of 2015 and project a fleet exceeding 218 by the end of 2020.

U-FLY will be beneficial for HNA. The airlines - HK Express and three from mainland China: Lucky Air, Urumqi Air and West Air - will work together for revenue and cost synergies. In the long term this cooperative action will hopefully spread across the HNA group and integrate it more effectively. The alliance's objective is to "build U-FLY to span the globe, similarly to existing full service airline alliances", and it reflects the ambition and high aspirations that often characterise Chinese aviation. The existing global alliances have attractions that are structurally different to passengers and prospective airline members. U-FLY is likely to provide some cohesion to various HNA LCC brands. Other LCC groups - AirAsia, Jetstar, Viva and FastJet - already benefit from the power of a single brand structure.

Asian LCC Value Alliance establishes a new direction, using a new connectivity technology platform

Asia's LCC sector is further evolving by embracing partnerships and a new loose form of alliances. The newly established Value Alliance and the smaller China-based U-FLY Alliance - launched in early 2016 using the same technology platform - represent a new competitive response to Asia's leading LCC groups.

Partnerships are critical for unlocking a new phase of growth in the relatively crowded and increasingly competitive Asian market. This is particularly important for independent LCCs that are outside the region's three major groups - AirAsia, Jetstar and Lion. Value and U-FLY members combined account for approximately 19% of LCC capacity in Asia Pacific; this compares with 16% for AirAsia/AirAsia X, 11% for Lion and 9% for Jetstar.

Of the 53 LCCs based in Asia Pacific, nine are members of the Value Alliance and four are members of U-FLY. AirAsia/AirAsia X has eight affiliates or subsidiaries with a ninth to be launched by the end of 2016. The Lion Group consists of three LCCs and includes Asia's second largest (along with two full service airlines), while the Jetstar Group has four subsidiaries or affiliates.

Value Alliance: the hubs, focus airports and routes where alliance members might gain synergies

Since the Value Alliance was announced in May-2016 as the second low cost airline alliance there has been industry interest about how and where the alliance can deliver synergies. The Value Alliance was a popular discussion item at CAPA's recent LCCs in North Asia Summit (7/8-Jun-2016) in Narita. Tokyo Narita is the alliance hub with more service from Value members (five) than any other. But Asia's most popular airports for Value members are not where the alliance has a local member: Taipei and Hong Kong.

In terms of frequency, Manila and Bangkok Don Mueang have the most Value flights, reflecting their local membership there. The local Value member based at an airport typically dominates the hub, accounting for over 90% of Value flights. That creates a strong feed network for other members but also - potentially - competition that may be too strong. Members overlap on only six routes so far and their combined frequency gives them a scale advantage against non-Value LCCs. Although it is premature to evaluate the effectiveness of the alliance - new members will join and existing members will grow - this analysis looks at where there are network opportunities for cooperation.

Gala Dinner, featuring the CAPA Asia Pacific Aviation Awards for Excellence, Ballroom, Capella Hotel

Hosted by

Wednesday 16 November 2016

Keynote Addresses

AirAsia X, CEO, Benyamin Ismail
Spring Airlines, Vice President, Jonathan Hutt

Panel Discussion: What are the next big leaps in airline and travel distribution?

Asia's airlines are expanding intercontinental networks at an unprecedented pace.

  • How important is GDS for these new markets?
  • How can GDS facilitate cooperation between a full-service airline and its low-cost off-shoot?
  • Can big data projects increase or improve GDS booking?
  • Can GDS play a role in self-connections?
  • In Asia especially, a generation of travellers is skipping desktop computer bookings for mobile bookings. What are the differences and advantages? Which agencies and airlines are at the forefront?
  • What do airlines want from OTAs and metas? Can this relationship be less hostile than airlines and GDS?
  • What more can it and other NDC initiatives bring? What is Google Flights' footprint in Asia?
  • Can consumers be loyal to OTAs and metas?
Moderator: MW Travel Consultancy, Principal, Martin Warner

Panel Members:

  • Booking.com, Director, Strategic Partnerships, APAC, David Peller
  • Japan Airlines, VP Marketing & Research Strategy Asia, Akira Mitsumasu
  • Skyscanner, Commercial Director, Asia, Paul Whiteway
  • Tripadvisor, Commercial Director, Flights, David Yong
  • Travelport, Global Head of Product & Marketing, Air Commerce, Ian Heywood

Some recent CAPA Analysis on distribution:

Amadeus and Navitaire: a dual brand strategy allowing greater airline hybridisation

8-Aug-2016 12:24 PM

As airlines have embraced dual brand strategies to reach full service and low cost growth aviation IT has responded, as seen with Amadeus' acquisition of Navitaire, which mostly but not exclusively powered the passenger service systems (PSS) of LCCs. In the first six months since the deal closed Navitaire has added 230m passengers boarded, to Amadeus Altea's 393m. Navitaire passengers account for 37% of Amadeus' total.

Having significantly grown its market share, and with past LCC product forays not having worked out, Amadeus receives a new business stream. Some Navitaire customers (Ryanair, AirAsia, IndiGo) are larger than Altea customers and have high growth ahead of them. A second benefit is the Navitaire acquisition supporting Altea customers. By owning both products Amadeus can improve connectivity between Altea and Navitaire airlines. Most of Altea's large customers - Lufthansa, IAG, AF-KLM, Qantas and JAL - have an LCC operating Navitaire software. Of Navitaire's passengers - 35% are on airlines that are LCC units of full service airlines. Other airlines may be holding out on pursuing partnerships and connectivity until there is a cheaper, simpler and streamlined way.

It may seem that the Amadeus-Navitaire marriage is about full service and low cost segments, but its greatest strength is the role it will have in the hybrid segment. Hybridity is growing, and Amadeus-Navitaire could galvanise further expansion.

Airline Strategy Boardroom:

  • Do the best opportunities already exist at the edges of your business?
  • Can the airlines' core offering truly be 'disrupted'?
  • And, are ancillaries the surest path for airlines to grow economic returns?

Moderator: L.E.K., Global Lead on Aviation, Dan McCone

Panel Members:

Market wrap & Analyst Review: Turbulence ahead - when will the good times end?

  • Are we heading into the next downturn - and if so, how long will it last?
  • International capacity has grown strongly, but at the same time, fuel prices are very low. It's a strange environment - where to next?
  • Consolidation
  • Shifting from airline business to group holding business
Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison

Panel Members:

CAPA-ACTE Asia Corporate Travel Innovation Summit, 15 November (parallel stream to Aviation Summit)

Chairman's Welcome & ACTE Introduction

Association of Corporate Travel Executives (ACTE), Asia Regional Director, Benson Tang

  • Why are we focused on payments and expense? Who benefits?
  • Featuring British Airways Audience Polling


The Asia Pacific Corporate Travel Outlook: Where to for fares and rates?

  • Cutting edge market data and predictions on where the market is headed for 2017.
    2016 State of Business Travel: Business Traveller Spend and Behaviour

Presenters:

  • Sabre Travel Network, VP Sales and Market Development, Todd Arthur
  • ForwardKeys, Chief Marketing Officer, Laurens Van Den Oever

Disruptive innovation in Corporate Travel

In today's environment of expanding choice, access and freedom, the new tech-savy business traveller is demanding more - more choice, more personalisation and more disruption. But who are the major disruptors in the industry today and what affect will they have on your travel program in the future?

Carlson Wagonlit, VP - Information Technology, Asia Pacific, John Butler

Payments Big Picture Q&A: Understanding the payments landscape in Asia - the perceived challenges and the current reality of what's possible today in payments.

A high level view of travel payments in Asia, and what we can expect to see emerging from other regions of the world. Is there a "Travel Payments Guide for Dummies" which will tell our audience of the terminology, acronyms and a brief explanation of available products? How do today's available products and solutions differ to what we see emerging and in use in other regions of the world?

Can current and emerging products change the landscape significantly in parts of Asia and what is the "size of the prize"? What cost benefits are there, and who will be the beneficiary from overhauling current processes and practices? (Note, what are the practices that can be overhauled)

  • What products are relevant to Asia, what is present today (e.g. BTA, Lodge, Corporate, P, Virtual), and what is the difference in Debit, Prepaid and Credit……..
  • How does the cost of acceptance (to the merchant - airline, hotel, TMC) vary between pre-funded, debit and credit products?
  • What's the difference between card member present (with physical plastic) vs. card member not present (CNP) transactions
  • What you need to know and the role of Virtual Cards in CNP transactions
    • What is the real picture of the success of the general acceptance of virtual cards today, and what is being done to further improve the rate to 100%?
    • What's best practice for card acceptance and who is taking responsibility for driving acceptance?
    • How does this create less friction and better rates of completion at the "Check out" / confirmation point in the booking of the transaction?
    • What is the impact of the need for One Time Pin's (OTP's) on travel transactions in Singapore, and is there a solution?
    • What are the future strategies of a Brand Scheme? (How does a scheme differ from an issuer?)
  • What are the Issuers innovating in Travel Related offers to Corporates & to TMCs (how do these impact cost of acceptance for the vendor)

Moderator: MW Travel Consultancy, Principal, Martin Warner

  • MasterCard Worldwide, Vice President, MasterCard Enterprise Partnerships, Wholesale Travel Solutions, Asia Pacific Region, Alex Thanopoulos
  • Travelport, VP Global Travel Solutions, Alexandra Fitzpatrick
  • WEX, Managing Director Asia, Jeff Ames

The Great Debate: Overview of the evolution of the Payments Industry in Travel - acceptance, cost & risk. Are the latest opportunities & benefits fully understood?

There have been big changes in Payments and Risk since IATA originally mandated Resolution 890 and last revised it back in 2014, and this has been recognised by IATA with the first step to a New Generation of payment via the recently passed IATA Resolution 8xx at the Passenger Conference in Singapore just a few months ago.

  • How is the form of payment by the agent and its customers viewed by IATA, the airlines & the Intermediaries (TMC's)?
  • How is payment using cards held in the name of the agent seen by the airlines / IATA today, and how does this differ from the original purpose of IATA's resolutions governing this and the date of the last review?
  • Recent evolutions in the Payments Industry and the new range of products and solutions that are available (Prepaid, Debit, Virtual, etc) can significantly reduce risk, its cost and the cost of acceptance for airlines, hotels & other vendors?
  • Are there challenges specific to Asia, or will Asia have to follow a global directive on any new models IATA develop?

Moderator: MW Travel Consultancy, Principal, Martin Warner

Keynote Address: What is FInTech and what could it do for corporate payments?

A definition of FinTech and examples of who the players are and what they've brought to the travel industry so far:

  • What are the next horizons and solutions we should expect - from who and what pain points do we hope they'll solve?
  • What about the longer term future, what do we see in the Crystal Ball of payments?
  • How could FinTech be reshaping corporate travel and aviation payments in Asia?

RFi Consulting, Managing Director, Lance Blockley

Expert Panel: Payments in Travel - The 360 perspective from issuers to users

Payment System options under the microscope, including different payment products, terms & fees (Prepaid Debit, Credit, Corporate Travel Accounts and Virtual Cards), and what this means for process efficiency for the TMCs, Corporates & Merchants.

  • What are the pros/cons of the various options and what are the benefits are to the Traveller, Corporate (Travel Manager & Buyer), TMC, Supplier (Hotel, Airline etc)?
  • Are we seeing improvement in management / reduction of risk and fraud (how does that benefit everyone in reduced cost, and with certain suppliers reduced "friction" - this is equal to lower declines on "check-out", lower "chargebacks" and lower fraud)
  • Compliance:
    • What are the policy and duty of care ramifications?
    • Are all solutions PCI compliant? Do all solutions need to be PCI compliant?
    • What have we learnt so far from hotel acceptance experiences with Virtual cards?
    • What should we do differently?
  • What should TMCs typically expect to see from reductions in transaction length, cost and therefore improved efficiency?
  • What are the benefits of improved reconciliation of next gen products for Corporates & their TMC's?

Moderator: RFi Consulting, Managing Director, Lance Blockley

  • Travelport, VP Global Travel Payment Solutions, Alexandra Fitzpatrick
  • Conferma, CEO, Simon Barker
  • BCD Travel, Managing Director Singapore, Matthew Stewart
  • UATP, Director, Regional Operations, Cheng Liang Hung

Closing debate: Can LCCs and Premium Economy really drive air spend savings?

Low cost carriers (LCCs) and premium economy offer two disruptive new paradigms for corporates - or do they? Experts will share their insights and examine whether the right combination of these opportunities - together with early booking behaviour and sourcing best practices - can deliver savings.

Session Provocateur: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison

Moderator: Association of Corporate Travel Executives (ACTE), Asia Regional Director, Benson Tang

For more information or to register visit capaevents.com/AAS16

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