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Conclusion
The results of this study point to a number of priority areas for travel payments leaders. From delivering a smooth and consistent cross-channel payment experience to removing friction from cross-border transactions and in-person payments at different stages of the trip.
Respondents confirmed they must meet these objectives while reducing the overall cost of payments. To do so, they are planning to invest in new capabilities that can help increase revenue, improve efficiency and ensure travelers can pay in the way they choose across the trip.
The growing role of payments orchestration platforms was highlighted consistently by respondents as they seek to address rapidly changing traveler demands to pay in new way across multiple markets with the complexity of managing global payments flows. With only a third of travel companies having already implemented a payments orchestration platform so far, the industry can expect this theme to remain prevalent during the coming years.
The need to price travel offers in the customer’s native currency is now well understood across the industry and nearly seven in every ten travel companies will have made this possible in the near future, supporting conversion, transparency and incremental revenues.
Half of payments leaders already have, or plan to, move ahead with embedded finance at their organizations. Undoubtably one of the biggest changes, and opportunities, in travel retailing, embedding services like short-term credit or ‘Cancel for Any Reason’ is already driving significant profitability for pioneers across the industry.
The embedded finance trend has much more to offer the industry. With easier connectivity between banking and payments providers and the global travel industry, we are likely to see an increasing number of travel brands embed financial services. After all, just like banking services, travel is an intangible product and an experience that naturally prompts the customer to consider financial matters like foreign exchange, credit and insurance. But as this study highlights, more work is needed to share insights and information in this area as a ‘lack of knowledge’, rather than traveler demand, is currently holding the industry back.
Methodology
This report is informed by a survey with 52 senior payments leaders from airlines, travel agencies and hospitality companies.
The research was carried out on a global basis using an online survey methodology. The survey was conducted by Airline Information, an events and media organization that maintains a dedicated community of senior payments professionals from across the travel sector.
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