|Travel payments cost billions, but taming them Is no easy task.|
Friday, 18th October 2013
Source : PhoCusWright Inc.
For travel companies battling for bookings in the hyper-competitive online space, it costs money to make money and that precept holds true even after you close the sale.
Whether intermediary or supplier, airline or hotel, if you want to get paid, it's going to cost you.
According to a new report from travel industry research authority PhoCusWright, the cost of travel payments is a major concern across the industry – and there is a lot more to those costs than just card processing fees.
Travel businesses report payment transaction fees as second only to credit card fraud as the most important challenge in managing travel payments. Airlines, for example, spent nearly US$7 billion on electronic payment processing fees globally in 2012. Of this total, $6.2 billion came from credit and debit card transaction fees alone.
"Credit and debit cards still account for the vast majority of online travel sales, including bookings made via mobile device," said Douglas Quinby, PhoCusWright's vice president, research. "Although card fees are certainly one of the most visible forms of payments, there are a range of challenges and even widespread practices – from fraud to manual processing –– that can leave their mark on the bottom line."
PhoCusWright's Payment Unsettled: Cost Opportunity and Disruption in Travel's Complex Payment Landscape unravels the complexities of travel payments, highlighting key emerging technologies, practices and trends.
PhoCusWright's Payment Unsettled: Cost Opportunity and Disruption in Travel's Complex Payment Landscape provides data and insight to navigate the travel payments landscape with clarity and confidence.
- Detailed analysis of the state of travel payments for the airline and lodging segments
- Payment methods and trends for B2B and B2C bookings
- Dynamics surrounding Airlines Reporting Corporation (ARC) and International Air Transport Association's (IATA's) billing and settlement plan (BSP)
services, and other B2B payment methods
- Analysis of hotel merchant and agency models
- Overview of key payment trends, including the cost of payments, payment fraud, online alternative payments, and mobile booking/payments