Trends come and go. The travel industry is constantly seeking out new ways to revamp itself. But, despite major technological advances in the past decades, some territories (like payments) have remained under-explored. Until recently.
Payment is a critical component to delivering an effective distribution process and booking channel. The technology platform has to deliver a seamless traveller experience, maintain good supplier relationships, and save time and money on reconciliation and manual work.
Payment technology is changing all the time, getting more sophisticated, efficient, and secure. Yet, while e-commerce sites are booming, taking full advantage of these advancements, the travel industry has been in the back seat for a long time. However, new interesting alternatives have emerged and caught the attention of travel businesses. Here are some trends shaping the travel payment industry.
Increased emphasis on security
A majority of all travel payments are made online. Online travel payments security is the number one issue that companies pay attention to. Great measures have been taken in order to prevent cyber attacks and information leaks. Several new payment methods have emerged with a heavy emphasis on security, as they’re looking to eliminate the risk of fraud and cards being compromised.
More and smaller transactions
As more and more businesses are utilizing a platform for ancillary sales, the consumer behaviour has changed. This includes an increase in transactions since services can be added along the way – and months apart. It’s important to have a payments solution that can support more, but smaller, transactions and still maintain a high data-quality.
Transparency is key
Today’s modern traveller demands transparency from companies they’re buying products from. Don’t try to hide fees and hope you’ll get away with it. To further build trust, it’s beneficial to use a platform with multi-currency support. It conveys trust and travellers can select a currency they’re familiar with and know exactly how much they will pay.
Virtual payments on the rise
Fraud reductions and reconciliation benefits of virtual cards have been on the discussion table for a long time. They still represent only a small fraction of how agencies pay suppliers like airlines. However, this is looking to change and the trend is looking to get even more traction during 2020 and beyond. Virtual payments in the travel industry are definitely here to stay!
The key to future success in travel payments is spelt “virtual payments”. Download our guide “How virtual payments can revolutionize the travel industry” and learn more about how virtual payments will shape the industry.