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APG CORPORATE TRAVEL PLAN

ACTP is a payment solution created to strengthen the bond between airlines and corporate customers. This new product initiated with UATP is tailored for underserved corporate card markets. It will help airlines to lower the acquisition costs of new corporate customers, increase their loyalty and distinguish partner airlines from competitors.

Functional Description

UATP is a form of payment accepted by more than 260 airlines. It enables merchant airlines to lower their distribution costs. In 2014, the annual UATP volume reached USD15 billion worldwide, a 100% increase in 7 years. UATP helps the airline industry to save approximately USD200 million per year in credit card costs. Although UATP is accepted by most airlines its volume of transactions in emerging markets remains limited.

In partnership with UATP, APG created a new tailored product called ACTP which is commercialized by its network to focus on underserved corporate card markets. With ACTP, APG can now help airlines to enhance their offer towards corporate customers, a segment which is a source of higher yield.

Target Audience

Small and medium sized carriers have the possibility to co-brand a UATP card with APG. ACTP is a genuine marketing tool for airlines who are seeking to develop their brand awareness towards corporate customers.

Solution

ACTP provides partner airlines with a unique co-branded travel payment solution in order to generate extra sales on the corporate segment. Partner airlines now have the possibility to bring added-value to corporate customers by offering a secured mean of payment that is free of charge.

                   

  • In order to join ACTP, airlines must become UATP merchants and accept UATP as a form of payment
  • Once partner airlines are UATP merchants they can appoint APG to administer the ACTP Program. APG’s role will be to:

- Enable the issuance of co-branded UATP cards to corporate subscribers

- Assess risk on corporate customers

- Insure the payments of sales made with co-branded UATP cards

- Administer UATP’s central billing system

- Insure the access to UATP’s transaction portal

- Bring training and local support

  • ACTP will be most effective in countries where credit card penetration is low and where airlines do not yet consider corporate customers as a key segment.

   

Prerequisites

  • Scheduled airline
  • Available in Global Distribution Systems (GDS)
  • UATP Merchant

  

Benefits

  • Partner airlines become “virtual” UATP issuer
  • Helps partner airlines distinguish themselves from competition on the corporate segment
  • Attracts new customers and develops the corporate portfolio of airlines
  • Reaffirms the brand awareness on home market
  • Enables data collection on corporate customers (level III data)
  • No financial risk is taken, ACTP is run and managed by APG
  • No traditional UATP Issuer cost are applied

  

… and for corporate customers

  

  • A free payment solution is given to corporate customers
  • Travel payments are centralized with one invoice per period
  • Customers have access to a transactional portal with extensive travel data information
  • Customers have a tool to analyse and manage more easily their company’s travel expenses
  • Helps to setup a travel policy in the company by bringing cost control

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