Within three years the degree of acceptance of alternative payment methods has doubled, this was the finding of the latest 'Payments Unsettled' study by the market research company Phocuswright. In 2016 the market researchers again examined travel payment transactions in Europe on behalf of the London-based eNett, a specialist in innovative B2B payment solutions for the travel sector, as well as for other clients.
Right: Anthony Hynes Managing Director und CEO eNett International
The most commonly used methods were virtual payment cards and credit card numbers.
69 per cent of the travel companies polled have already introduced these innovative payment methods or are planning to do so. In 2013 the figure was just 36 per cent.
The survey of more than 250 travel companies throughout Europe clearly shows that there has been a decline in the use of customary payment methods, and that new and innovative solutions are gaining in importance.
“Virtual Account Numbers (VANs) have become established as an attractive alternative”, concludes Anthony Hynes, Managing Director and CEO of eNett, adding that “forecasts indicate that VANs will even overtake payments by cheque or bank transfer in the next few years.” Furthermore “The study reveals that the advances being made in payment technology will be accompanied by appreciable changes in the way that people make payments.”
The phocuswright study has also found that larger travel companies with a turnover in excess of ten million euros have advanced even further. VANs are used by 71 per cent of them, 62 per cent make use of bank transfers, 52 per cent make cash payments and 42 per cent pay by cheque. With regard to payment transactions with hotels or other forms of accommodation, 24 per cent of the travel companies questioned stated that VANs were their preferred payment method, after direct, standard credit card payments. “New payment methods have the potential to improve processes and boost efficiency“, according to CEO Hynes, ”as the investigation also revealed.”
Currently more than a quarter of travel companies process payments and commission manually. For smaller travel agencies this takes up an average of twelve working hours each week. The survey has established that this occupies at least four staff members for 16 hours per week in larger businesses. Hynes quotes from an analysis by eNett that was derived from the latest Payments Unsettled study and from IATA data: “In view of the possibilities for automating processes and for incorporating such solutions seamlessly in the existing workflow, for European travel companies this represents an unnecessary additional outlay each year of some 215 million euros.” eNett promotes its own payment solutions by pointing out their financial viability, data productivity and efficiency, and the low level of risk involved. As one of its main arguments the company, which is more than 50 per cent owned by Travelport, states that even more travel content is possible at a reduced cost.
The Managing Director and CEO is confident that: “An increasing number of travel companies are coming to recognise the benefits of alternative payment methods in terms of costs and efficiency.” These can be achieved simply by changing the method of payment.
Anthony Hynes confidently states: “This is just the start of the revolution in finance technology on the B2B market.” The industry will undergo a transformation in coming years, and innovative payment methods will be the dominant feature. The secure virtual account numbers (VANs) from eNett now enable travel agencies of all sizes to automatically create a unique MasterCard number and to make payments directly to their suppliers during the booking process. They also have access to the world’s fastest payment processing network and to 35.9 million payment centres all over the world, because eNett acts in partnership with Master Card. At eTravel World Edward Chandler, Chief Commercial & Partnerships Officer, eNett International is making a presentation entitled “Payments that power experience " How B2B payments choices impact customer experience in today’s competitive travel landscape”.
Sabine Neumann
www.enett.com
Hall 7.1c/ booth 111
eTravel Lab - Day 1, 8 March 2017: Hall 7.1c, 14.30
