Travel payments: opportunities and challenges in 2023
Over the last few years, the travel industry has been heavily impacted by the COVID-19 pandemic, leading to significant changes in travel payments.
It is predicted that 2023 will be a year of new opportunities and challenges for the travel industry as it recovers from the pandemic. According to Visit Britain, 35.1% more people will visit British destinations in 2023 than in 2022, and £29.5 billion more cashflow will be spent.
Now is the perfect time to learn about the 2023 travel payments opportunities and the challenges that await. All of that will be covered in this article, as well as the benefits of using a travel POS system.
Opportunities in travel payments
Being omnichannel means having a 360-degree approach to your ecommerce strategy, where your customers can interact with your business across multiple channels seamlessly – it’s what we call Converged Commerce™. This means that customers can purchase your products and services through a wide range of channels, including brick-and-mortar stores, online marketplaces, social media platforms, mobile apps, and many more. An omnichannel approach (or Converged Commerce™) means that your business is not limited to a single way of customer engagement but rather has a strong presence across a variety of channels.
In essence, being omnichannel is all about providing customers with a seamless and consistent shopping experience, regardless of the channel they choose to shop on. This means that the customer journeys must be streamlined, with each touchpoint delivering the same level of service and quality. Converged Commerce™ or an omnichannel approach allows businesses to cater to a wide range of customers with varying preferences, ensuring that every customer is provided with a personalised and convenient experience.
The importance of an omnichannel strategy
An omnichannel strategy is becoming increasingly important for businesses, as customers are expecting a seamless and consistent shopping experience across multiple channels. Converged Commerce™ can help businesses increase customer engagement, improve customer satisfaction, and boost sales.
One of the biggest travel payment opportunities is the rise of the metaverse.
Many travel companies are exploring opportunities to monetise the metaverse by offering virtual travel experiences. As virtual travel will enable users to explore virtual concerts and exhibitions in an online world, the metaverse and travel payments must become seamless. Pre-trip assistance and the ability to “try before you buy” as well as “buy now pay later” will become popular.
Another opportunity is the rise of digital nomads.
With the rise of remote work, more people are becoming digital nomads and spending money in their home countries or migrating to different locations. A widespread corporate formalisation of work-from-anywhere policies presents an opportunity for travel businesses to cater to this growing demographic. As multi-currency becomes a global phenomenon, travel companies should market their services internationally to compete. To meet the demands of foreign buyers, companies must be able to expedite cross-border payments according to their preferences.
There is a growing trend towards local travel.
There will be more team-building activities or corporate retreats this year as businesses bring teams together for business purposes. As a result, travel businesses can offer customised packages for team-building activities that can include arranging unique local experiences, such as guided tours, cooking classes, adventure activities, or cultural events, which can cater to these types of events. Another monetisation option could be providing transportation services, such as a shuttle or private car rental, to and from local airports or between different destinations.
Finally, payment diversity is here to stay.
In 2022, Pay-by-Link, QR Codes, and digital wallets were a few of the most prevalent digital developments. There is considerably more travel now, so these payment services continue to eliminate communication breakdowns and human error.
Top three challenges for travel payments
With the rise of digital currencies, the value of traditional currencies can be highly volatile. This can create problems for travellers and businesses alike, as it can be difficult to predict the value of a currency at any given time.
Biometrics and SCA (Strong Customer Authentication)
are something travel companies have not grasped yet. Biometrics are becoming increasingly important in travel payments, as they can provide an extra layer of security for transactions. Implementing biometric authentication can be complex, and there are concerns about privacy and security. SCA is becoming a requirement for many online transactions, but it can be challenging to implement in a way that does not negatively impact the customer experience.
The adoption of digital currencies
The adoption of digital currencies. Many travel companies and airlines now accept digital currencies as payment, but challenges are still to be overcome. For example, there is the issue of ensuring that digital currencies are secure and protected against fraud.
Becoming omnichannel with Trust Payments
Travellers can benefit from many travel POS advantages, which means a hassle-free payment experience. Using credit or debit cards, they can pay for their travel expenses, such as flights, accommodation, and activities. This eliminates the need to carry cash or travellers’ cheques, which can be lost or stolen.
For businesses, travel POS systems provide a more streamlined payment process. They can process transactions quickly and easily, reducing the risk of errors and improving the customer experience. Additionally, travel POS systems can offer businesses valuable data on their customers’ spending habits, helping them to improve their services and offerings.
See our Travel Payment Solutions offering to reduce costs, be more efficient, and have higher approval rates. With multi-currency payments, fraud screening, chargeback management, and chargeback representation, you can offer travel solutions that delight your customers.