Introduction of the Optional Payment Charge (OPC) for Credit Card Payments Trade Information Package Optional Payment Charge (OPC)

Transcription

1 Introduction of the Optional Payment Charge (OPC) for Credit Card Payments Trade Information Package Optional Payment Charge (OPC) 3 August 2011

2 The Cost of Credit Card Services today are mainly borne by Lufthansa Group Airlines Example credit card (illustrative) Customer benefits of a credit card (dep. on credit card) Credit period Automated processes Billing quality Liability coverage for non-performance Insurance services Possibilities for internal allocation of travel expenses Reports/evaluation function Cashless payment Acceptance through worldwide network Credit line Security against fraud Participation on corporate incentive/ bonus programmes Online services Access to lounges Individual (corporate) design of card Wide range of other card services Page 1

3 By introducing the Optional Payment Charge (OPC) the customer will contribute to cover Credit Card Costs Credit Card Use Assumption of costs (to date) Credit card costs (disagio) are borne entirely by Lufthansa Group airlines Customer benefits (depending on credit card product) Credit period Automated processes Billing quality Liability coverage nonperformance Diverse insurance services Optional No OPC for non-credit card payments No OPC if new AirPlus Debit Account is used Payment Charge Cost contribution (in the future) Customer will contribute in covering credit card costs (disagio). Page 2

4 For Tickets with Point of Origin Switzerland and issued as of November 2nd, 2011 the Optional Payment Charge (OPC) will be levied in all sales channels Basic components of the OPC for Point of Origin Switzerland (for all sales channels) Relevant methods of payment Credit card as form of payment in ticket (all credit cards) AirPlus Debit Account/ Non-credit card payment Destinations (IATA-Definition) Switzerland domestic (DOM) Europe (CONT) Intercontinental (ICONT) for all OPC amount per ticket CHF 6* CHF 11 CHF 22 CHF 0 Participating airlines (based on ticket stock) * incl. VAT Page 3

5 Introduction of Optional Payment Charge (OPC) by Lufthansa Group in all Sales Channels in Six European Countries of Origin Country of Origin Germany Switzerland Belgium Finland Netherlands United Kingdom AirPlus Debit Account/ Noncredit card payment Tickets issued from 2nd November th September 2011* 2nd November 2011 OPC amount per ticket EUR 5/ EUR 8/ EUR 18 CHF 6/ CHF 11/ CHF 22 EUR 7.50 EUR 7.50 EUR 7.50 GBP 4.50** EUR 0 Differentiation (acc IATA-Definition) DOM/ CONT/ ICONT DOM/ CONT/ ICONT none none none none** for all Participating airlines (based on ticket stock) *Until 2 nd November 2011: OPC levied for point of origin Finland, the Netherlands and United Kingdom if ticket is issued in those countries. **OPC only applies to Economy classes. Page 4

6 The Optional Payment Charge (OPC) is levied based on the Country where the Journey begins and the Document used (Ticket Stock) OPC applies when the following criteria are fulfilled: Point of Origin Document used (= ticket stock) Germany Switzerland Belgium from Independent of country of ticketing, identical treatment of tickets worldwide Finland Netherlands United Kingdom from Independent of operating carrier, ticket stock is relevant Page 5

7 From Calculation to Billing the Optional Payment Charge (OPC): Technical Standards enable fully-automated Processing for Travel Agents Ticketing Invoicing Accounting BSP billing The use of a standard process (OB fee) in the GDS means the OPC is calculated automatically based on the form of payment entered and, if relevant, charged The OPC will be shown on the Passenger/Itinerary Receipt The interface between the midoffices and the GDS was adapted in 2008/ 2009 and includes the necessary data fields The invoice is shown correctly (OPC as part of grand total) automatically based on implementation status of OB fee by midoffice provider Billing data is processed via standard process (GDS, mid-office, backoffice) Billing/settlement occurs via established BSP processes Recommendation: You might want to check your invoicing on your invoicing system (mid-office)

8 The Optional Payment Charge (OPC) has no impact on Corporate Incentive Programmes. Corporate Rates are exempt until 31 March Corporate Incentive Programmes: Corporate contracts Certain Corporate rates are exempt from OPC for Point of Origin in Switzerland and Germany until 31 March 2012 RBDs exempt EU: J C D Z Y B M U H Q V W RBDs exempt IC: F J C D Z Y B M U No contractual adjustments/amendments necessary No impact on net flown revenue The new AirPlus Debit Account is accepted as form of payment and tracking medium for corporate incentive programmes* *For detailed information please visit Page 7