According to Boxever, 80% of people abandon their travel shopping cart, while abandonment rates for retail and other industries range from 68% to 74%. While this is in part due to average order value, this is also influenced by conversion rates and paths to purchase.

As a result of changing consumer behaviour, people want a choice of payment methods. Merchants need to understand how their audience likes to pay for things and provide appropriate payment methods that align with these preferences. For example, many people are now looking to spread travel costs, favouring options that allow them to pay in instalments. Different regions have evolved and adopted different local preferences too, so travel merchants must look at which digital payment methods are used in-country and ensure they are available. For example, with a payment expert like Getnet travel companies gain a partner that offers and covers countless, localised payment methods.

Merchants in the travel sector must also consider how they approach different customers. For example, the younger population require a seamless online experience, with quick online payments and cancellation process. They also look to use non-banking providers that offer them discounts on loyalty programs. Meanwhile, the senior population are looking for a more personalised service. Pin pads that welcome them with their name, financing options, reimbursements and a seamless experience are important for an older population.

Travel providers don’t need to reinvent the payment wheel, instead, they should look for an international payment processing expert as a reliable partner when integrating modern payment systems. This not only has the advantage of freeing up more time for the actual business, but the specialists also have knowledge of current regulations and developments.

Fraud continues to be a major source of revenue loss for travel companies. As customers demand more payment and booking methods, the challenge to provide comprehensive fraud management is growing. Whilst a credit card is by far the most frequently accepted payment method of airlines for direct bookings for example, the risk of fraud is also considered to be the highest. Some people prefer instant bank transfers and online wallets, but these are offered much less frequently, despite having a lower risk of fraud. Travel companies must, therefore, strike a balance between offering customers a wide range of payment options and providing appropriate protection against non-payment and fraud.

 

 

 

The pandemic forced customers and merchants to be more flexible as travel rules changed daily. Customers got used to last-minute cancellations which led to 82% of customers taking a closer look at the refund policy. Yet, this is not a possibility for many travel companies. Commonplace payment methods don’t always have the instant refund capability or an automated way to provide refunds, meaning merchants need to start the process manually. When it comes to refunds on card payments, travel merchants need to ensure they have a robust refund process in place to meet consumers need for seamless payment processes.

To stay competitive, travel providers need to ensure they also provide a seamless checkout experience and make sure they can meet the growing expectations of consumers. Payments are a key aspect of customer experience so it’s vital that merchants get it right the first time. This will ensure the long-term survival of a travel provider with satisfied customers and positive reviews.

By offering local and alternative payment methods, fast refunds and sophisticated fraud management, providers increase customer satisfaction and decrease the risk of losing the customer to the competition. To capture all possible sales and have a higher conversion rate, travel providers need to evaluate their payment options and ensure these are aligned with customer wants and needs.

There are many payment challenges and opportunities facing this industry and at Getnet, we will continue to look at the biggest challenges travel providers need to tackle to be successful.