The complete guide to travel payments | Insights from industry experts

This guide covers the key challenges and opportunities in travel payments, including B2B virtual card adoption, alternative payment methods, fraud prevention, regulatory changes, forex risk management, tourist taxes, AI-driven booking via the Model Context Protocol (MCP), and sustainability initiatives.

To offer our readers a comprehensive overview of the main pain points in the travel industry, we brought together insights from IATA, ECTAA, Up in the Air, Edgar Dunn & Company, Alternative Airlines, GetYourGuide, Avianca, airBaltic, Trip.com Group, JCB International, and more.

Whether you're a travel payment professional or payment service provider, this resource provides insights from the front line of travel payments.

What are the key travel payment trends in 2026?

As consumers’ payment expectations shifted in the last couple of years, the travel industry has responded by adopting alternative payment methods that are in line with customer demand. The following contributions showcase examples of how travel players are catering to the payment needs of today’s travellers.

 

 

How is the MENA war reshaping travel payments?

Ray Shinzawa (JCB Europe), Maarten Rooijers (Payments Taking Off), Will Plummer (Repayd), Livia Vite (actuary.aero), and Sami Doyle (TMUManagement) examine how the MENA conflict is reshaping traveller behaviour, FX exposure, chargebacks, fraud, and acquirer risk appetite.

Key takeaways:

• The MENA corridor handles 5% of global international arrivals and 14% of global transit traffic, and flights are down 59% against pre-conflict levels
• WTTC estimates the regional travel sector is losing around USD 600 million per day, with jet fuel prices up 103% month-on-month in March 2026
• Chargeback liability is falling disproportionately on merchants and acquirers, risking tighter underwriting and higher rolling reserves across travel
• Delayed-delivery merchants carry rolling forward exposure on bookings made months in advance — the real risk sits off today's chargeback reports
• 'Extraordinary circumstances' chargebacks and double-dipping (refund + chargeback) are rising as consumers bypass standard refund processes
• Cross-border card rails hold up; the friction concentrates around FX, settlement timing, and reconciliation

Read the full piece here.

How will challenges, trends, and regulations shape travel payments in 2026? For this expert roundtable, The Paypers invited Eric Drésin, Secretary General of ECTAA, Thierry Stucker, IATA’s Director for Industry Payment Programmes, Paul van Alfen, Travel Payments Strategist at Up in the Air, Sam Argyle, Managing Director of Alternative Airlines, Jacqueline Ulrich, SVP Global Travel Partners & Product Strategy at Nuvei, and Greg Toussaint, Director at Edgar, Dunn & Company to discuss the trends, challenges, and regulatory shifts impacting travel payments in 2026. Key takeaways: Card payment message standards need to evolve The differences in innovation between B2B and B2C travel payments are significant Agentic commerce will become prevalent, requiring new payment journeys PSD3's Commercial Agent Exclusion could force travel agencies to seek payment institution licensure Read the full article here.

How is the travel industry actually using AI in 2026?

Nathan Whittingham, Consultant at KAE, maps AI across the travel value chain in 2026 – from agentic booking to predictive maintenance and AI revenue management – and the four barriers that aren't technical.

Key takeaways:

• The big shift is from ‘here are your options’ to ‘I've booked it.’ Agentic AI that searches, compares, books, and confirms autonomously is the most significant structural change in travel commerce since online booking itself.
• Trip.com's TripGenie, three years in: AI-assisted order volume up ~400% year-on-year, core tool use (hotel comparison, menu help, live translation) up ~300%, nearly 60% of interactions now booking-related, and over half of hotel-comparison users picked the AI-recommended hotel.
• On the supplier side, AI's biggest impact is operational. Lufthansa Technik's AVIATAR predictive maintenance now serves 800+ airline customers and 4,500 aircraft, turning AI-derived insight into a sellable product.
• AI revenue management at scale: over half of Accor's 5,836 hotels price rooms automatically via IDeaS, with the group reporting a 4.2% RevPAR rise in 2025; franchisee Obvio saw a 14% ADR increase after  replacing manual spreadsheet-based forecasting with AI-driven analytics.
• Infrastructure is being rebuilt too: Amadeus Nevio is moving carriers (Finnair, Air France-KLM, all nine Lufthansa Group airlines, BA) off legacy PSS toward IATA Modern Airline Retailing.
• Four non-technical blockers: accuracy and trust, governance and regulation (EU AI Act enforcement looming), data infrastructure, and organisational readiness.

Read the full article here.

What caused Spirit Airlines to collapse?

Diana Vorniceanu, Senior Editor at The Paypers, breaks down Spirit's collapse.

Key takeaways:

• After two Chapter 11 filings (November 2024 and August 2025) and years of post-pandemic losses, Spirit ceased all operations on 2 May 2026, ending a 34-year run as a US ultra-low-cost pioneer.
• The numbers behind the failure: ~USD 2.5 billion in total losses since the pandemic during the first Chapter 11 filling, USD 245 million net loss in Q2 2025, and a fuel shock – jet fuel hit ~USD 4.24 a gallon by mid-April 2026 against a turnaround plan built on ~USD 2.24.
• The endgame was a failed bailout: a USD 500 million government lifeline collapsed over terms (warrants equal to 90% of equity), and acquisition talks with Frontier, Breeze, and Avelo went nowhere – echoing the blocked USD 3.8 billion JetBlue deal in 2024.
• Fallout: rival carriers offered capped DOT-coordinated ‘rescue fares,’ fares are expected to rise, and 17,000 workers lost their jobs.

Read the full article here.

How do payments shape the customer experience in airline travel?

Louis Wapler, Manager at Edgar, Dunn & Company, argues that payments are an underrated lever in airline customer experience, with hidden friction across three dimensions: payment offering, cost, and authentication.

Key takeaways:

• 92% of travellers rate ease of payment as important, yet 17% still face card declines, and 59% will abandon a booking if their preferred method is missing 
• Local methods dominate locally: Pix in Brazil (71%), AliPayHK in Hong Kong (29%), Bizum in Spain (23%)
• Cost optimisation funds choice: one airline cut payment processing costs by ~20% via a multi-acquirer strategy with local acquirers who also operate as issuers unlocked ‘on-us’ pricing on specific transaction flows, freeing budget to add Pix, Bizum, BLIK, and AliPayHK
• Blanket 3DS hurts conversion in markets where it's optional (US, parts of APAC); risk-based, dynamic authentication lifts approvals and cuts authentication abandonment
• Payment acceptance policy should span five dimensions: sales geography, sales channel, payee profile, payment methods, and payment providers

Read the full article here.

How are virtual cards transforming B2B travel payments?

Charlotte Piron-Seth and Greg Toussaint of Edgar, Dunn & Company (EDC) discuss the rise of virtual cards and their role in modernising the travel industry’s payment infrastructure.

Key takeaways:

• Virtual cards represented 40% of OTA payments to hotels by 2022
• B2B will represent 83% of the global virtual cards market by 2029
• 74% of airlines cite improved cash flow from shorter settlement cycles as the main benefit of accepting virtual cards
• The piece includes a 5-step roadmap for travel players 

Read the full article here.

What is MCP and how will it change travel booking?

Hospitality expert Ira Vouk breaks down the Model Context Protocol (MCP), its impact on travel payments, the challenges for hotels, OTAs, and airlines, and the future of AI-driven booking.

Key takeaways:

• MCP is the ‘USB-C for AI agents’, one integration, many AI platforms
• AI has become the new travel agent
• Hotels, airlines, and OTAs face different risks and opportunities
• By end of 2026 the first wave of direct MCP bookings will be live
• Data quality determines whether AI exposure helps or hurts

Read the full interview here.

What do the ChatGPT integrations with Booking.com and Expedia mean for OTAs, airlines, and hotels?

Diana Vorniceanu, Senior Editor at The Paypers, analyses the October 2025 ChatGPT integrations by Booking.com and Expedia, and discusses whether AI-assisted travel booking addresses genuine customer needs or simply creates new discovery channels. 

Key takeaways:

• ChatGPT has reached 800 million weekly users
• There is a significant difference between consumers using AI for discovery vs actual bookings
• Infrastructure challenges vary by industry player
• Monetisation and margin compression concerns arise

Read the full article here.

What caused airline bankruptcies in 2025?

Diana Vorniceanu, Senior Editor at The Paypers, takes a close look at the airline bankruptcies that shook the travel industry in 2025.

Key takeaways:

• An analysis of the bankruptcies of Silver Airways, Spirit Airlines, Air Belgium, Russian airlines, Azul Linhas Aéreas Brasileiras, Voepass, and GOL
• The editorial features commentary from industry experts on the effects of Air Belgium's bankruptcy on European consumers and tour operators, as well as the overall situation in LATAM, where several airlines have faced bankruptcies in recent years

Read the full analysis here. 

How are Asian travellers' payment preferences evolving in Europe?

Ray Shinzawa, Managing Director at JCB International (Europe), examines the changing travel volumes from Asia to Europe and the evolving payment habits.

Key takeaways:

• Asian outbound travel to Europe hasn't returned to pre-pandemic levels
• Travellers expect payment technologies common at home but lacking in Europe
• Scenarios where Asian travellers prefer cards over APMs
• Payment gaps European merchants should address

Read the full interview here.

How can airlines optimise payment acceptance performance?

Julia Callejo, Manager, Paris at Edgar, Dunn & Company, highlights how to control the cost of acceptance while optimising payment coverage for airlines.

Key takeaways:

• The evolution of airlines’ payment acceptance 
• Pain points related to payment acceptance
• Learnings from actual airline case studies 

Read the analysis here.

How is fintech reshaping travel payments in 2025?

Iulia Mușat, News Editor at The Paypers, takes a closer look at how fintech companies are partnering with travel industry players to drive the future of travel payments.

Key takeaways:

• The state of travel in 2025: key stats and the rapid growth of the industry
• How fintech is serving the shifting travel behaviours and payment needs
• The rise of crypto in the travel industry
• Tackling fraud and chargeback challenges in travel
• Emerging trends beyond 2025

Read the full contribution here.

How are cryptocurrency and BNPL changing travel bookings?

Sam Argyle, Managing Director at Alternative Airlines, discusses the reasons behind the adoption of cryptocurrency as a payment method for travel bookings. He also covers how BNPL will likely evolve within the travel sector over the next 5-10 years and what role regulation will play in that evolution.

Key takeaways:

• The customer profile of travellers opting for crypto payments 
• 30% of American travellers prefer paying for bookings with cryptocurrencies
• BNPL will continue to evolve in the travel payments space
• Traveller behaviour has become more focused on eco-friendly and sustainable travel options

Read the full interview here.

How are customer loyalty, gamification, and Web3 reshaping travel?

Arturs Garais, Web3 Senior Project Manager at airBaltic, touches on the current economic climate impacting the travel industry, expands on concepts like customer loyalty and gamification, and shares details about the impact of Web3 and blockchain technology developments on players and consumers in the travel industry. 

Key takeaways:

• Most leading airlines also reporting weaker revenue results in Q2-Q3 2024
• Tiered loyalty programmes instil a sense of progression and achievement among members
• Gamification plays a role in boosting customer redemption rates
• The shift towards Web3 technologies and blockchain in travel is clear

Read the full interview here.

How are travel companies preventing fraud?

Fraud is a significant pain point in the travel industry, with a 2025 survey revealing that travel merchants reported average fraud costs of USD 11 million. In the following interviews, we explore fraud prevention tactics and fraud trends in the sector.

How can travel merchants fight chargebacks without adding checkout friction?

Sam Argyle, Managing Director of Alternative Airlines, argues that most travel disputes come from confusion, not fraud – and that proactive communication is the strongest lever merchants under-invest in.

Key takeaways:

• Travel is structurally high-risk for disputes: long booking windows, high transaction values, intangible service-based goods with no physical proof of delivery, frequent cancellations, and high levels of friendly fraud.
• Risk-based handling beats blanket friction: auto-fulfil for low-risk and VIP customers; step-up verification (3DS, OTP, ID checks) for higher-risk customers, countries, and currencies.
• Risk is scored across booking history, payment behaviour, route and destination, departure date, and booking characteristics.
• Disputes are rising largely because mobile banking apps now let customers file claims in a few taps, often with no evidence – sending them to the bank first instead of the merchant.
• VAMP (in force) and SMMP (incoming) are pushing merchants from reactive dispute handling to proactive risk and transparency management: tighter audit trails, clearer fare rules, better refund communication.
• A mature strategy tracks the booking flow end to end with airlines, consolidators, and GDS partners, backed by timestamped evidence, a structured dispute pack, and post-dispute root-cause analysis. The most common blind spot: proactive customer communication.

Read the full interview here.

To challenge or not to challenge: how should airlines approach 3DS?

Javier Gutierrez Rueda, Director Corporate Development and Head of Payments and Fraud Prevention at Avianca Airlines, takes a close look at current SCA challenges and suggests ways to overcome them.

Key takeaways:

• The global cost of cybercrime is projected to reach USD 10.5 trillion annually by 2025
• Cumulative losses from online payment fraud alone projected to exceed USD 363 billion between 2023 and 2028
• Travel merchants are facing 36% of the global suspected fraud attempts
• Three alternatives to improve conversion and increase the number of satisfied customers

Read the full editorial here.

What are the latest fraud prevention trends for travel marketplaces?

Gianmichele Zappia, Head of Risk and Fraud at GetYourGuide, discusses the latest trends in fraud prevention in the travel industry, the emerging patterns of fraudulent activities, explains the role of holistic risk mapping, and shares best practices in balancing fraud prevention measures and a convenient checkout experience.

Key takeaways:

• Emerging patterns of fraudulent activities targeting travel marketplaces
• The role of holistic risk mapping in combating travel fraud
• Best practices in balancing fraud prevention measures and a convenient checkout experience
• How travel merchants can stay ahead of evolving fraud tactics

Read the full interview here.

How does loyalty fraud impact the airline industry?

Michael Smith, board advisor at Airline Information, examines the intricacies of loyalty fraud in the airline industry and pinpoints best practices that loyalty programme managers can implement.

Key takeaways:

• The specificities of loyalty fraud in the airline sector
• How fraudsters exploit airline loyalty programmes
• The impact of ATO fraud on airlines
• Best practices that loyalty programme managers can implement to mitigate risks

Read the full interview here.

What are the regulatory and tax impacts on travel payments?

Regulations play an important role in how travel businesses operate. The following contributions explain the impact of payment regulatory frameworks on different players in the industry. Moreover, with taxes quickly becoming a pain point for tourists, we offer an educational overview of how tourist taxes work and how they impact both travellers and the aviation industry.

What does the revised Package Travel Directive mean for refunds, vouchers, and prepayments?

Benoît Chantoin, Director for Legal and Consumer Affairs at ECTAA, breaks down the revised PTD – triggered by the Thomas Cook collapse and the COVID-19 crisis – and where the industry won, and what to watch in transposition.

Key takeaways:

• Scope is simplified: Linked Travel Arrangements are deleted, the proposed three-hour package threshold is gone, and the 24-hour definition is now opt-in only. But the click-through provision is broadened to cover any transfer of personal data.
• Insolvency protection now covers all advance payments, with refund deadlines of six months for future travel and nine months for travel already taken.
• A new B2B refund rule requires service providers (airlines, hotels) to refund organisers within seven days when a service isn't delivered – though it mainly bites for EU-based businesses.
• Vouchers get a legal framework: max 12-month validity (renewable once), insolvency-protected, value at least equal to the refund, transferable at least once, and unused value auto-refunded on expiry. Travellers keep the unconditional right to choose cash over a voucher.

Read the full interview here.

What payment challenges do travel agents and tour operators face under evolving EU regulations?

Eric Drésin, Secretary General at ECTAA, offers an overview of the payment challenges travel agents and tour operators face, discusses the role the pandemic played in the rise of digital payments, and the impact of regulatory frameworks like PSD2, PSD3, and the European Commission's revisions to the Mobility Package and the Package Travel Directive, among others.

Key takeaways:

• Emerging regulatory challenges and opportunities
• The role of alternative payment methods (APMs) in travel
• The impact of the COVID-19 pandemic on payment behaviours

Read the full editorial here.

How do tourist taxes work, and what is their impact on the aviation industry?

In a two-part interview, Adiel Mambara, Country Manager for Royal Brunei Airlines in the UK, presents an overview of how tourism taxes were introduced, how their purpose changed following the pandemic, and how the resulted revenue is allocated. The first part of the interview also features case studies on how tourism taxes are implemented in Italy, Spain, China, Japan, and the UAE.

In the second part of the interview, Adiel Mambara explains how varying tourist tax rates across countries impact airlines' route planning, offers an overview of the Air Passenger Duty, and puts forward a list of long-term implications of sustained tourist taxes. 

Key takeaways:

• The history of how tourism taxes were introduced and how their purpose evolved post-pandemic
• How revenue from tourist taxes is allocated
• Case studies on tourism tax implementation in Italy, Spain, China, Japan, and the UAE
• How varying tourist tax rates across countries impact airlines' route planning
• An overview of Air Passenger Duty (APD) and its effects
• Long-term implications of sustained tourist taxes on the aviation industry

Read part one and part two of the interview here.

How can travel companies manage risk?

Risk management in the travel industry is a nuanced issue. Moreover, with fluctuating exchange rates, the complexity of currency conversion, and high transaction fees, forex is another key pain point in the travel industry that often leads to inefficiencies and financial losses for travel businesses.

What forex strategies should airlines use?

Maarten Rooijers, the founder of Payments Taking Off and an airline payment and forex specialist, discusses the challenges airlines face when converting foreign currency revenues from international ticket sales, foreign exchange risk management, forex hedging strategies, and ways that airlines can leverage foreign exchange to their advantage.

Key takeaways:

• Potential inefficiencies in airline forex processes and how to address them
• Differences in foreign exchange risk management between low-cost carriers and full-service airlines
• Factors airlines should consider when selecting a forex hedging strategy
• Challenges of operating in countries with unstable economies or restrictive currency regulations
• How airlines can leverage foreign exchange to their advantage

Read the full editorial here.

Why do one-size-fits-all risk strategies fail in travel?

Livia Vité, Chief Executive Officer at actuary.aero, explains the intricacies of risk management in the travel industry.

Key takeaways:

• Why a universal risk approach is ineffective for travel merchants
• The importance of articulating your risk profile when working with financial providers
• Why acquirers should adjust their risk criteria as travel merchants' business models evolve
• Strategies that travel businesses should adopt to manage risk and support sustainable growth

Read the full interview here.

What role does sustainability play in travel payments?

With growing concerns regarding the environmental, social, and economic impact of travel, more than ever before, sustainability has become a hot topic in the industry.

How is IATA integrating sustainability into air travel?

Muhammad Albakri, Senior Vice President, Financial Settlement and Distribution Services at IATA, examines explores airline payment challenges, emerging payment trends, customer-centric payment strategies, and sustainability integration in air travel.

Key takeaways:

• The challenges airlines face regarding payment processing and fraud prevention
• Trends shaping the future of airline payments
• Strategies for airlines to enhance customer-centricity through payments
• How IATA is working to integrate sustainability initiatives into air travel

Read the full interview here.

How do regional and demographic differences shape sustainable travel preferences?

Trip.com Group examines how payment preferences vary by region, upcoming trends affecting OTAs, and how different generations and geographies approach sustainable travel.

Key takeaways:

• How to stay ahead of changing payment preferences across different geographies
• Trends that will have an impact on OTAs over the next 3-5 years
• Regional differences in how travellers perceive sustainability
• How sustainability concerns shape the travel habits of different generations

Read the full interview here.

What topics should we cover next?

Our goal is to create a comprehensive resource for navigating travel payments, and we value our readers' input in shaping this series. If you would like to see any specific topics covered, we invite you to share your thoughts with us at payments.team@thepaypers.com. We look forward to hearing from you!

The Paypers' Travel Series features insights from the following industry experts and organisations:

• Eric Drésin | ECTAA | Secretary General
• Thierry Stucker | IATA | Director, Industry Payment Programmes
• Muhammad Albakri | IATA | SVP, Financial Settlement and Distribution Services
• Paul van Alfen | Up in the Air | Travel Payments Strategist
• Sam Argyle | Alternative Airlines | Managing Director
• Jacqueline Ulrich | Nuvei | SVP Global Travel Partners & Product Strategy
• Greg Toussaint | Edgar, Dunn & Company | Director
• Charlotte Piron-Seth | Edgar, Dunn & Company | Consultant
• Julia Callejo | Edgar, Dunn & Company | Manager, Paris
• Ira Vouk | Hospitality Expert 
• Ray Shinzawa | JCB International (Europe) | Managing Director
• Arturs Garais | airBaltic | Web3 Senior Project Manager
• Javier Gutierrez Rueda | Avianca Airlines | Director Corporate Development & Head of Payments and Fraud Prevention
• Gianmichele Zappia | GetYourGuide | Head of Risk and Fraud
• Michael Smith | Airline Information | Board Advisor
• Adiel Mambara | Royal Brunei Airlines (UK) | Country Manager
• Maarten Rooijers | Payments Taking Off | Founder
• Livia Vité | actuary.aero | Chief Executive Officer
• Trip.com Group | Trip.com Group
• Diana Vorniceanu | The Paypers | Senior Editor
• Iulia Mușat | The Paypers | News Editor 

This article was last updated in March 2026.