Online travel company, Wakanow, has announced a new payment model which will see the current model move from a two-week airline billing settlement cycle to a daily direct remittance and pre-paid card payment settlement.
According to Wakanow this will significantly reduce the cost of travel for its customers adding that the two week Billing and Settlement Plan (BSP) requires significant bank guarantees running into billions of Naira, forcing travel agencies to pass on the increased cost to customers.
Wakanow’s new model will see airlines receive their payments within 24 hours versus the standard process on the BSP which takes about four weeks. Customers will also benefit from a faster refund process where claims can be turned around in a few working days rather than the current arrangement which takes months to complete in some cases.
Group Managing Director of Wakanow, Obinna Ekezie, explains: “Over the last two years, airfares have skyrocketed due to the devaluation of the Naira and increased airline risk in payment collection and remittance. These new daily remittance and Prepaid card settlement platforms to be launched by Wakanow have been tested by Emirates, Royal Air Maroc and Kenya Airways. It will revolutionize the entire travel industry and offer reduced pricing for airline tickets.” Wakanow is working closely with its IATA, airlines partners and Zenith Bank to make this transition sail smoothly.