Travel and tourism: 2024 payment trends
Travel and tourism: 2024 payment trends
The travel industry has undergone a major transformation. The future of travel and tourism will be defined by contactless payments, and ongoing innovation will only elevate the passenger experience and reduce pain points further. This blog will explore my 2024 travel and tourism payment predictions.
Heightened payment security
When tourists are away from home, payment security must take absolute priority. To uphold trust among travellers, travel and tourism operators, as well as Payment Service Providers (PSPs), gateways, and acquiring companies, must invest in strong payment security measures. By embracing innovative and highly secure digital payment technologies, they can ensure seamless and safe transactions. This not only fosters consumer confidence but also minimises the risk of fraudulent activities targeting unsuspecting travellers.
By implementing user-friendly digital payment solutions that effectively shield tourists' financial transactions, merchants not only safeguard their customers but also foster brand loyalty.
Give people what they want
Mobile and in-app booking systems has redefined the way we plan, manage, and pay for our journeys. This hasn’t just streamlined the booking process but has also significantly impacted the overall travel experience.
In 2024, more merchants will use mobile to enhance the customer experience. The incorporation of digital wallets and other mobile payment solutions is key for travel and tourism operators developing their mobile and app-based booking systems. Beyond expediting transactions, this technology offers secure options that simplify the payment process for both travellers and merchants.
The advent of mobile check-in and digital boarding passports has made smartphones the go-to tool for 70% of travellers when researching holidays. In response, merchants must prioritise the integration of mobile payments and digital wallets into their platforms, ensuring that consumers can effortlessly complete transactions. By accommodating diverse customer preferences, merchants can address the needs of customers. For example, those who want to bypass reception queues through pre-booking services and completing check-ins before reaching their destination. Doing so can provide tailored VIP treatments to enhance the personalised experience for each guest.
In 2024, travellers want to carry everything they need for their journey conveniently in their pocket, including their preferred payment method. This alignment of convenience not only meets the demands of modern consumers but also fosters loyalty by encouraging repeat business.
"Mobile and in-app booking systems has redefined the way we plan, manage, and pay for our journeys. This hasn’t just streamlined the booking process but has also significantly impacted the overall travel experience.”
Tailored payment options
Many urban areas experience heightened foot traffic due to an influx of tourists. School holidays and bank holidays mean there will be peaks in tourists visiting and in 2024, travel and tourism operators must consider what will entice tourists to seal the deal with a purchase. Broadening the available payment methods should be a top priority for merchants.
Different geographies have distinct preferred payment methods. For example, in Europe, customers expect additional convenience and often want to spread the load of their holiday travel expenses with a BNPL (Buy Now Pay Later) service. Added to this, in 2024, I expect split payments (shared billing methods, where the total cost of a purchase or service is divided among multiple parties) to rise in popularity and revolutionise the way people split expenses and manage their travel finances.
Whereas in Asia, consumers have become accustomed to merchants leveraging social media as a tool for selling their goods. Through advertisements, offering discounts, and enabling direct bookings, businesses are integrating marketing into the payment ecosystem. This extends across various sectors, including hospitality, tourism, and retail. As such, merchants outside of Asia seeking to attract Asian tourists should recognise the pivotal role of social media in driving purchases and adapt accordingly.
Because of this, merchants must ensure they offer a range of alternative payment options to cater to tourists from all over the world. For example, Getnet, a PagoNxt company partners with international merchants to provide global and local market knowledge and services across multi-channel platforms. Backed by Santander Bank, it supports all payment needs across its markets. This includes improving the simplicity, speed and safety of payments for merchants across gateway, risk management and processing.
The future of travel and tourism payment trends will see a huge shift towards contactless payments and heightened security measures. Diversifying payment options to accommodate global preferences, prioritising robust security measures, and leveraging the convenience of mobile payments will be key in 2024. By embracing these trends, travel and tourism operators can not only enhance the customer experience but also cultivate lasting loyalty in an increasingly digital landscape.
