Air carriers in recent years have signalled a desire to reduce or offset the fees they must pay to credit card companies each time a ticket is purchased with a card. These credit card merchant fees have become the single-largest distribution cost for airlines.

To date, only a handful of airlines globally have moved to unburden themselves of merchant fees. Nevertheless, the implication to corporate clients and travel management companies of a change in the current credit card merchant model is so significant that the issue warrants careful attention. In every instance in which airlines have passed merchant fees along to others, the result has been higher costs for corporate clients.

An upcoming white paper by BCD Travel explores why airlines are considering a shift in the current merchant fee model and how that change might adversely affect corporate travel buyers. In addition, the paper recommends steps corporate clients can take to address the threat to bottom lines and travel-process efficiencies posed by a change in the credit card merchant model.

Stay tuned…