Are travel companies taking full advantage of different payment options?

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The number of different payment options available to travel customers has expanded greatly in the last few years - but are Travel Management Companies taking full advantage of the range of strategic benefits this trend can deliver?

This was the subject of recent research conducted by Atmosphere Research on behalf of Datalex, which examined data from the airline industry and found that payment technology is currently being underappreciated as a strategic asset.

Although payment strategy was generally seen as increasingly important to the different businesses surveyed, the report indicated that few companies are acting on these sentiments, particularly when it comes to embracing the full range of different payment channels that are now available.

Figures highlighted by Tnooz indicated that, when asked whether they accepted 12 forms of payments, the airlines accepted only 4.4 payment types on average, with traditional options such as credit and debit cards, cash and cheques accounting for 86 per cent of all transactions.

By contrast, few of the companies had gift card programmes in place or accepted online payment services such as PayPal, while instalment-based payments were not accepted by any of the businesses surveyed. Moreover, none of the airlines accepted multiple forms of payment for single transactions, potentially limiting customer options.

Given that new channels such as passenger-paid bank transfers, mobile money, blockchain and digital tokens are all expected to become key pillars of the online payment market in the coming years, the Datalex report called for travel companies to do more to modernise their approach to payment processing.

It was concluded that in doing so, these businesses may be able to harness the full strategic benefits that a more flexible approach to payment can deliver, including enhanced customer service and higher rates of user satisfaction, as well as the potential for cost reductions.

For information on how your TMC can automate its mid and back-office systems with ProTAS, contact ProCon Solution now.

ProCon Solution A/S
Herstedøstervej 27-29
DK-2620 Albertslund
Phone: +45 4363 2266