18 Apr 2024 – By Bryan Obala.
In the fast-evolving landscape of travel and tourism, the role of online payments has become more vital than ever before. Projections indicate that by 2033, the industry will soar to a staggering $15.5 trillion, contributing significantly to the global economy bloomberg. Particularly in developing markets across Africa, where new destinations are emerging as hotspots, the potential for growth in the travel industry is immense.
To capitalize on this growth, travel merchants must align with consumer expectations by offering seamless and reliable payment systems, with online sales projected to constitute 74% of total revenue by 2027. Here are five essential strategies that can help travel merchants meet these increasingly high consumer demands:
- Transparency: Be clear and specific about the payment options available to consumers. Transparency builds trust and enhances the buying experience.
- Security: In an era of burgeoning travel e-commerce, robust cybersecurity measures are indispensable. Offering secure payment options helps instill confidence and protects against fraud, which saw a concerning 156% increase in the global travel and leisure industry in 2021.
- Convenience: Tailor payment options to meet consumer preferences. Personalized services, including currency options and bundled offerings like travel insurance, enhance convenience and satisfaction.
- Reliability: High authorization rates are key indicators of success. Optimizing authorization rates not only drives incremental revenue but also fosters customer loyalty and repeat business. Even a slight improvement in authorization rates can translate into significant additional revenue, enabling businesses to fund expansion and innovation initiatives.
- Flexibility: Embrace Buy Now, Pay Later options to accommodate the diverse financial needs of travelers. Offering flexible payment solutions encourages purchase completion and enhances the overall shopping experience.
Looking ahead, the future of travel and tourism is brimming with possibilities. As businesses chart their course forward, prioritizing transparency, security, convenience, reliability, and flexibility will be paramount. By embracing these principles, merchants can navigate the dynamic landscape of global travel and ensure that everyone reaps the economic benefits of this thriving industry.
