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Simplifying multicurrency flight bookings – Japan Airlines
How did a leading Japanese airline make it easy for customers to book flights in their preferred currency with HSBC’s multi-currency pricing solutions?
Travellers who book flights online prefer to see prices in their local currency. This matters because what they’re charged at checkout is the same as what they'll see on their card statements – a transparent, trust-building customer experience.
Conversely, when the airfare is priced other than in the traveler's preferred local currency, there's no visibility on the FX cost and hidden charges at point of sale, which can lead to discrepancies between what was paid and what eventually appears on their credit card statements - leading to frustrations which may impact the overall customer experience.
Rising multicurrency needs
Japan Airlines (JAL), the country’s flagship carrier, provides international and domestic passenger services to 384 destinations in 66 countries worldwide. During the fiscal year ended 31 March 2024, JAL carried over 41 million passengers, a customer base that includes a significant proportion of international travelers.
Servicing these customers is the airline’s passenger service system, which displays fares, manages available seats, holds reservation records and issues e-tickets.
As their passenger base grew, JAL was faced with rising cashless payments across a growing range of currencies from travelers around the globe. A sophisticated FX solution that could seamlessly integrate with passenger service system was needed to display fares in a customer’s own currency and accommodate the shift in how and where bookings were being made.
Pricing for greater efficiency
JAL worked with HSBC and passenger service system to implement a Multi-Currency Pricing solution that allows the airline’s customers to view and purchase flight tickets in their currency of choice. This real-time, 24/7 solution is designed to improve customer experience by providing greater transparency over FX conversion costs while allowing JAL to manage this without incurring additional FX risk.
The HSBC and passenger service system partnership provides JAL with real-time guaranteed FX rates which allows airfares to be locked in for a pre-agreed time window. The whole FX pricing and booking process is now fully automated delivering a seamless user experience that is integrated with back-end settlement processes via APIs.
JAL saw a range of important benefits from putting this solution in place:
- Simpler and more transparent flight booking experience
- Stronger FX risk management
- Automated processes unlocking the ability to scale operations and compete internationally
By implementing HSBC’s Multi-Currency Pricing solution, our passengers can now pay in their preferred currency, a significant improvement to our customer experience. We’re now in a much stronger place to reach and accommodate our growing international customer base and further accelerate our digitisation journey.
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Partnering for growth
HSBC has been supporting JAL on a wide range of needs as the airline has grown and evolved. This latest solution comes at an inflection point for JAL as it looks to lead in innovation domestically and accelerate its competitiveness globally. A more accommodative flight booking experience, where customers can view and purchase tickets in their preferred currencies, is at the heart of this ambition.
HSBC’s global network and deep experience helping businesses do business across borders and currencies, matches perfectly to this ambition and has laid the groundwork for much more collaboration in the future.
The rise of cashless payments in multiple currencies can be an acute challenge in the aviation industry. Handling these transactions seamlessly, without compromising the customer experience, is where we can play a meaningful role. We’re pleased to support Japan Airlines in implementing a Multi-Currency Pricing solution that will enable them to reach their growth and expansion goals.
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It’s often said that the sky is the limit. In JAL’s case, with HSBC by their side, it’s safe to say that the sky is just the beginning of a whole new world of opportunity.
