ATPS25: Trend towards travel agency merchant payment model hailed as a ‘win win’

A shift to airlines distributing more of their inventory through travel agencies is expanding out from North America and going global, according to leading credit card scheme Mastercard.

Speaking at the Airline and Travel Payments Summit B2B in London last week, Esperanza Fernandez, Mastercard director of airlines, set out four key trends it is seeing.

All four trends are driving a more collaborative and transparent relationships with third party travel agencies as airlines look to indirect distribution to boost sales.

Fernandez sad the sector is seeing growth in the “merchant of record model” with airlines more inclined to support agencies to transact direct with their customers.

It is thought this is due to agents being better positioned to offer local payment methods, higher payment approval rates they have, and better anti-fraud protections.

“The US is where this is growing most,” she said, “which is interesting and exciting. In other regions like the Middle East it’s…