The COVID-19 pandemic brought the tourism sector to a standstill. As per UN Tourism’s World Tourism Barometer, it took until late 2024 for the sector to manage a full recovery from what many consider one of the most significant crises in its history. Despite geopolitical and climate challenges, growth for the industry is also in the cards. According to Statista, by 2029, the global travel and tourism market is anticipated to reach a value of USD 955,94 billion, with online sales projected to account for 75% of the total revenue.
As the travel industry continues its growth, new payment technologies, trends, changes in customer behaviours, and regulations are reshaping payments in this sector, adding new layers of complexity.
To offer an overview of the current pain points and the emerging opportunities in this space, The Paypers has reached out to industry experts and stakeholders and compiled a series of articles and interviews that provide practical insights from the front line. The Travel Series brings together representatives from industry associations and organisations, marketplaces, online travel agencies (OTAs), airlines, and consultancies, aiming to showcase the latest payment trends and shed light on industry-specific issues – from fluctuating tourist taxes, forex, and crypto payments to shifting customer behaviours, loyalty programmes, APMs, fraud concerns, and regulatory challenges.
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.
Sam Argyle, Managing Director at Alternative Airlines, discusses the reasons behind the adoption of cryptocurrency as a payment method for travel bookings and shares insights into the customer profile of travellers opting for crypto payments. The interview also covers the use of Buy Now, Pay Later (BNPL) in travel and the emerging payment trends in the industry. You can read the full interview here.
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. Check out the full interview here.
Fraud is a significant pain point in the travel industry, with a recent survey revealing that 53% of travel merchants reported fraud costs of more than USD 10 million in 2024. In the following interviews, we explore fraud prevention tactics and fraud trends in the sector.
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. Read the full interview here.
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. Check out the full editorial here.
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.
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. Access the full editorial here.
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. Check out the first part here.
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. Access the second part of the interview here.
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.
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. He further highlights how airlines can tackle potential inefficiencies and explains the differences in foreign exchange risk management between low-cost carriers and full-service airlines. The interview also provides insights into what factors airlines should consider when selecting a forex hedging strategy, the challenges they face when operating in countries with unstable economies or restrictive currency regulations, and ways that airlines can leverage foreign exchange to their advantage. Read the full piece here.
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.
Muhammad Albakri, Senior Vice President, Financial Settlement and Distribution Services at IATA, examines the challenges that airlines face regarding payment processing and fraud prevention, explores which trends are shaping the future of payments, discusses strategies for airlines to enhance customer-centricity through payments, and shares insights on how IATA is working to integrate sustainability initiatives into air travel. Access the full interview here.
In this interview, Trip.com Group offers insights into how to stay ahead of changing payment preferences across different geographies and the trends that will have an impact on OTAs over the next 3-5 years. Moreover, the interview presents finding form the company’s recent report on sustainable travel by explaining the differences between how travellers from different geographical regions perceive the idea of sustainability and how sustainability concerns shape the travel habits of different generations. Check out the full interview here.
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!
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