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Why is AirPlus exiting China?

10/29/2024| 8:14:46 PM| ChinaTravelNews 中文

The corporate travel payment giant has chosen to focus on the European and North American markets.

AirPlus, a leading global issuer of UATP cards, plans to exit the Chinese market by mid-2025. This decision has garnered significant attention in the travel management sector.

The UATP (Universal Air Travel Plan) card has been a cornerstone of corporate travel management for decades.

Its origins trace back to the mid-20th century, when the rapid expansion of the airline industry heightened businesses’ demand for streamlined travel expense solutions.

Created as a response to these needs, the UATP card offered corporations a convenient and efficient way to manage travel payments and expenses.

As an important tool for corporate travel and expense management, AirPlus' departure from China poses new challenges for business managers but also gives rise to potential market innovations.

From an industry perspective, AirPlus' exit is likely to trigger a shift in the competitive landscape, sparking a fresh wave of market realignment.

Other payment service providers, especially UATP card issuers and credit card companies, are expected to seize this opportunity, expanding their reach and targeting AirPlus' clients to increase their own market share.

In this context, there is a growing interest in whether major Chinese airlines and TravelSky (China’s primary aviation IT provider) should re-evaluate and consider incorporating credit card payments into the BSP (Billing and Settlement Plan) system.

This practice is standard in many global markets, where airlines use unified billing systems that support credit card payments, greatly improving payment efficiency and user experience for agents and travel management companies. However, in China, this feature remains absent, preventing the full utilization of credit card payments’ convenience and reach.

Industry experts are urging companies and institutions to push beyond current limitations and explore the inclusion of credit card payments in BSP settlements. This shift could drive significant advancements in China's aviation payment landscape, offering greater flexibility and ease for corporate travel management.

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TAGS: AirPlus | business travel payment | BSP | Chinese market | UATP card
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