In the recent decade, there has been an explosion of online travel services offering consumers a new level of convenience. Services like peer-to-peer lodging, alternative resort options (glamping, anyone?), pre-packaged holidays, price comparison sites, and last-minute booking services – all catering to a range of ages and budgets – have made booking travel cheaper, faster and more accessible than ever before.
With the increased usage of the internet and connected mobile devices, in addition to industry changes that are creating a more competitive environment, the online travel industry is booming with global online travel booking revenue estimated to generate over $375 billion in 2019.
However, while technology has boosted the industry, online travel businesses are faced with a new set of challenges such as maximizing web traffic and combating fraud – and as a cross-border business by nature, they also face a unique challenge when it comes to payments.
Providing services to travel businesses around the world, from luxury safaris to ticket sellers for some of the world’s most popular attractions, Trust My Travel has complex payment processing needs that are supported by Checkout.com. Will Plummer, CEO of Trust My Travel, shares his tips and best practices on navigating the world of payments within the travel industry.
Like-for-like settlements make a big difference.
With a global client base, Trust My Travel faced challenges around the expense involved in the payout process. Being able to pay out like-for-like in 15 currencies through Visa and Mastercard, and in daily payout cycles, makes a difference to cost efficiency. Ensuring that your PSP is equipped to do this will save you time and enormous costs.
Offering local payment methods is essential.
Around the world, people have their own preferred way of paying. Just in the last six months, Trust My Travel has enabled processing of 25 global currencies – and will be adding more alternative payment methods in 2019. Offering locally preferred payment methods reduces friction and ensures that travelers don’t miss out on their once in a lifetime experience just because their preferred payment method was not available.
Leverage your payment provider to take you global.
As part of their growth, entering emerging markets was a key strategy to expanding their global footprint. By processing with Checkout.com, Trust My Travel can more easily establish customer relationships in the Middle East and offer like-for-like payouts in the local currencies; fast-tracking their expansion in the region. Inclusivity is a core priority for Trust My Travel and it is important that they offer their services to every market and every region in addition to gaining access to new, digitally-savvy customers.
Fraud and safety should always be top priority.
With a client base so varied, a successful risk strategy has to be flexible. Understanding industry requirements as a whole, such as recognizing certain fraud patterns that are unique to travel or learning how to apply different risk prevention strategies (especially relevant to Trust My Travel’sbusiness since different rules may apply when dealing with agents versus direct bookings), is critical. Your PSP should offer state-of-the-art fraud protection tools and protocols along with an ongoing consultative approach to optimize business protection without harming your conversion. In Europe, Trust My Travel has seen their fraud ratio fall by over 60% since working with Checkout.com – and it’s still dropping.
Find a true payment partner.
Streamlining their payment ecosystem has also made way for innovation across other areas of their business. Financial protection has and will always be at the heart of their business, and partnering with Checkout.com has enabled them to look at ways to refine, innovate, and introduce a range of new technologies that will provide their members with more sophisticated travel business payment solutions.
With such complex business needs, a one-size-fits-all approach will likely fall short in helping travel companies reach their growth potential, and possibly risk the safety and security of their patrons. Be sure to implement the practices above and you’ll be able to help your online travel businesses stay ahead of the curve—with the right travel business payment solutions.