Air Europa

With international air travel on track to exceed 2019 levels across all markets this year, industry players are seeking greater ways to meet and exceed customer expectations while steadily growing their bottom line. Approximately 72% of airline customers prefer booking travel directly online, often citing easy price comparison as a key reason for that preference. By providing clear pricing and cost transparency in the customer’s currency of choice while they are browsing flights online, airlines can deliver a smoother, more helpful experience for passengers long before they check in.

Air Europa is a growing international airline based in Palma de Mallorca, Spain, offering regular flights to destinations across Europe, the Americas, Africa and the Middle East. Exploring ways to improve the online booking process for their customers, Air Europa partnered with Fexco to introduce multi-currency pricing (MCP) on their website and mobile app, a project that not only improved the customer experience but also delivered significant revenue gains for the company.

The opportunity

Recognising the importance of providing a seamless booking experience for customers, Air Europa sought ways to improve transparency and ease for international travellers looking to book airfare online. Offering multi-currency pricing on aireuropa.com and the app would let shoppers compare flight costs in their preferred currency, helping them more easily evaluate options and choose the best flights for them. By improving the customer experience and making it easier for passengers to book their travel, Air Europa could secure more direct bookings on their website and app. The MCP service would enable more accurate pricing using real-time currency conversion rates, and Fexco’s treasury services would position the company to earn more with every purchase.

“When we looked at the numbers and opportunity with our passengers, it was clear that MCP could be a really beneficial offering, both for Air Europa and our customers,” said Yago Casasnovas, Head of Payments, Fraud Prevention and Distribution at Air Europa. “It presented an opportunity to increase revenue while also improving the booking experience.”

The solution

Air Europa worked with Fexco to implement multi-currency pricing directly on its booking website and mobile application, letting customers choose from a range of currencies to shop, compare and book flights with greater clarity and convenience. The API integration was seamless, and throughout the implementation process, Fexco provided best practice recommendations on everything from placement of the MCP offering on the webpage to default currencies by location.

“Working with Fexco has been really smooth and very professional,” Casasnovas said. “They are experts in this area, and getting that kind of guidance and insight, and kind of following their lead has been really helpful.”

Beyond adding MCP to the booking process, Air Europa also leveraged Fexco’s Treasury service in order to avoid any foreign exchange risk and further streamline the payments process. While delivering an improved experience for customers was an attractive goal of the project, the chance to gain increased revenue from existing business made the business case a compelling one. The full solution enabled Air Europa to grow revenue without relying on additional sales or ancillary offerings, letting the team continue to focus on meeting customer expectations.

The results

Since the project went live on aireuropa.com in April 2023, the airline has earned additional revenue each month from online bookings, with 2.2% of total transactions running through Fexco’s MCP solution. The collaboration with Fexco continues, exploring ways to maximise the benefits of MCP for both passengers and Air Europa.

In one effort to better understand customer preferences and improve service, the airline tested pre-selecting Mexican pesos as the default currency for customers in Mexico. Fewer shoppers changed currencies, demonstrating a preference for pesos as the currency of choice in that locale and helping Air Europa provide a better tailored experience for users. Insights like this are helping the airline to evolve pricing strategies to better meet the needs and preferences of its diverse customer base.

Additional tests and adjustments continue as the airline works to maximise the positive impact of the MCP offering for passengers all over the world. “There is more we can do for other markets, and for example we could expand the use of MCP beyond just ecommerce,” said Casasnovas. “But for now, we have it implemented 100% on the website and app. We’re seeing the positive impact for customers alongside the increased revenue, so the project is a clear success.”

The MCP solution is currently available in Europe, North America, Central America, South America, North Africa and Asia, offering international customers the flexibility and convenience to purchase flights in the currency of their choice. Moving forward, Air Europa is well-positioned to continue leveraging Fexco’s services and expertise to drive further growth and success in the competitive airline industry.