Following the festive season, consumers often spend the first few weeks of the new year planning for the year ahead. Part of this usually involves organising holidays, as consumers take advantage of off-peak sales and crave something to look forward to during the gloomy winter weather. Because of this, January is the busiest month for travel businesses in terms of online holiday searches and booking numbers, as reported by ABTA.
According to Statista, the travel and tourism industry is one of the most competitive in the world, so it’s crucial that organisations find ways to stand out and offer the best experience possible during periods of high traffic. One way to do this is by streamlining their payment processes. A perfected approach to payments also drives several other benefits for both merchants and consumers, making it logical area of prioritisation for those looking to maximise success.
More payment options, more customer-centricity
One way travel businesses can optimise their payment systems is by implementing a diverse range of payment options. Offering multiple solutions demonstrates a business’s commitment and understanding of every customer’s needs – from families who want to pay off their holiday in instalments to help manage budgets (for example, via Buy Now, Pay Later), to professionals who need to book business travel in a specific way.
A reliable Payment Service Provider (PSP) can ensure that transactions happen as efficiently as possible by enabling the right payment solutions for each business. For example, one solution that a PSP can help travel businesses accept is Open Banking. Account to account payments made through Open Banking don’t require lengthy card details, so customers can complete bookings in just a few clicks. Funds are also instantly transferred from the customer’s bank account, meaning bookings can be confirmed much quicker.
Tokenisation is another process that PSPs can help travel businesses embrace. This is where a customer’s primary card number is replaced with a unique token, which is safely stored for subsequent payments. This then enables a faster and more secure checkout process for future bookings – ideal for periods of high traffic.
Pay by link is another versatile and increasingly popular payment method, especially for spontaneous or last-minute bookings in the travel industry. This method allows travel companies to send a secure payment link directly to a customer’s device via email, text message or messaging apps like WhatsApp – enabling customers to complete their transactions instantly. Unlike MOTO payments, Pay by link incorporates 3D Secure 2 (3DS2) protocols. This additional layer of security not only protects sensitive payment data but also strengthens merchant defences against chargeback disputes by shifting the responsibility for fraud from the merchant to the cardholder. This is offering peace of mind for the merchant and the consumer.
Enhanced security helps to drive trust
Payment fraud is a major problem in the UK, accounting for over £551 million in losses in 2023, according to UK Finance. During peak periods, losses often spike as higher transaction volumes make it easier for fraudulent transactions to slip through the cracks of fraud detection systems.
Enhanced payment security protocols can enable travel businesses to provide safe transaction processes during high-traffic periods, without compromising the customer experience. A PSP can help travel businesses to seamlessly integrate these enhanced fraud solutions into their existing systems. Examples include real-time transaction monitoring, automated rule-setting for flagging suspicious transactions and enhanced authentication.
Once travel businesses have a strong payment security system set up, it’s beneficial to be transparent with customers about the protocols in place. This is because reassured customers that know their money is secure are more likely to trust a business and complete bookings. This can be achieved by visibly displaying security features where customers can see, for instance by adding secure payment badges to an organisation’s website.
Better overall operational efficiency
Finally, a streamlined payment system enhances internal operational efficiency for travel businesses. This is vital because when systems run smoothly, businesses can process more bookings, respond faster to customer queries and handle high-volume transactions seamlessly. Improved internal operations also reduce errors and bottlenecks that could drive customers to competitors, while helping maintain service quality even under high demand. Examples of internal solutions enabled by enhanced payment systems include rapid transaction processing, streamlined reconciliation and detailed reports.
To handle the surge in January bookings efficiently while driving customer loyalty, payment optimisation is key. Unfortunately, merchants who did not enhance their payment systems ahead of this peak sales season may miss out on opportunity to boost revenue for the year ahead.
To ensure future success, organisations should ensure they partner with the right PSP partner that can provide strategic advisory, meet their unique business needs and ensure they are fully prepared. At busy times like this, protecting against increased fraud risks and maintaining service quality are more crucial than ever – it pays to be prepared.
