It’s time for travel businesses to rethink how they transact

Innovation is building across the globe, despite infrastructure challenges, to create technology-enhanced payment solutions for travelers and travel businesses to easily transact across borders and currencies.

The pandemic shifted our relationship with monetary transactions. With global restrictions limiting in-person services, e-commerce businesses boomed; with less disposable income but high consumer demands, payment features like buy now, pay later saw an emergence.

While technology advancements have, for many years, provided non-linear transaction models for consumers and businesses, the pandemic drastically changed the way we transact – forever.  

For the travel industry, we may have seen the most drastic shift in how consumers, suppliers and other stakeholders expect to transact with travel businesses. Traditionally, the travel industry - primarily because of its global scale in local communities - has been restricted in adapting many fintech solutions. Technology-enhanced payment solutions are harder to scale globally, especially across borders and in local communities, without multiple intermediaries.

During the past two years, however, as the world scrambled amidst unprecedented disruption, infrastructure has accelerated to support wireless payment options across the globe, while fintech businesses have innovated solutions that specifically handle travel payment woes in areas that lack proper infrastructure. 

In 2021, WeTravel - an all-in-one booking and payments platform built for any travel business that operates multi-day trips - recorded our business’s most transactions since our founding in 2016, with more than 3,000 travel companies using our fintech solutions to handle their payments. Of those transactions, 40% were from new travel businesses. This year, again, we’re seeing monthly double-digit transaction growth, fueled by new businesses. 

As a SaaS and fintech platform, many businesses are moving to our all-in-one booking and payments platform to transact–in new and innovative ways - with their travelers and their suppliers. From our peer-to-peer payment network to installment payment options and Instant Payout options, we’ve seen significant growth in travel businesses utilizing our fintech solutions to meet their business’s needs. Here’s what we’re seeing: 

For the traveler

• Cash-free payment options

Digital and mobile payment solutions enhance customer experience and protect customer data. As travel professionals, many operators package their tours with inclusions to get a trip’s total cost, while offering additional activities to be paid at the destination. 

Now, as the travelers’ needs are shifting, these add-ons can be offered as additional costs added to the trip’s total, so travelers can use digital payment solutions and avoid unnecessary in-destination cash payments. Not only do travelers want to travel with less cash, but they also want to best know how much the trip will cost – before they depart.

At point of sale in destination, there are multiple ways to offer digital and mobile-friendly contactless payment options. 

Although not guaranteed, contactless payment is becoming more possible - still slowly evolving in rural and local communities - as wireless communication for data transmission is more available across the globe. Businesses (whether travel or dependent on travelers) are using applications to support wireless payment options in many local destinations. 

Working with your suppliers, you can in advance find out whether activities and experiences offer cash-free payment options, so your travelers are prepared before departure.

• Comprehensive payment options

When you consider the purchase price of the trip you’re selling, it’s important to understand the payment options you can offer your travelers. Like e-commerce businesses, book now, pay later is relatively new in the travel industry, but is a well-used - and liked, specifically by travelers - fintech option for high-cost purchase items.

Many fintech businesses offer this solution to integrate into your booking process, making it an easy addition to your business’s payment options. Partnering with a fintech platform that integrates directly into your booking process will create a seamless option for your travelers – while ensuring you’re getting the financial commitment from travelers who may not have the entire up-front cost of your trip at the booking time.

If you’re unable to implement, or don’t want to offer, the solution for your travelers, offering installment payments can give travelers the option to digitally pay for portions of the trip’s cost before departure. Through WeTravel’s platform, our clients can set deposit and installment amounts that work for their business – and their travelers.

For the travel business

• Instant payout options

As a travel business owner, understanding how to best control cash flow is difficult; with a comprehensive offering of solutions to accept and process payments, however, cross-border payments are challenging because cost and time are not transparent. 

Traditionally, sending a global payment would mean routing through multiple banks before reaching the destination, often delaying payments, and charging additional fees. 

However, cross-border and cross-currency solutions through fintech are making payments faster - sometimes instant - and easier. Finding the right option will help your business reduce risk and shape strategic growth opportunities within your supply chain.

• Cross-border, cross-currency payments – at an affordable rate

Traditional fintech companies have gotten away with charging extreme fees for cross-border and cross-currency payments because they were dominating businesses, with little competition; however, with an increasing number of fintech solutions that handle cross-border payments, there are more affordable options for travelers. 

As a business owner, you can work with an integrated platform that handles cross-border and cross-currency payments - at a low fee - to save you and your travelers additional costs.

In 2022, as travel purchases have climbed - with airline spending up 13.3% since last year and lodging expenses jumping nearly 30% since last year, according to Mastercard - it’s important that travel companies understand the non-linear monetary options they have through fintech solutions to decrease avoidable costs and increase revenue opportunities.