66% of travel companies are seeing their profit margins impacted by outdated or complicated payment systems, with nine in 10 expected to prioritise modernising their financial operations this year.
This is revealed in a report released by Airwallex, and travel research company, Skift. The travel industry is also being challenged by shifting payment preferences since the COVID-19 pandemic. While revenue from cross-border payments is on the rise, the unprecedented diversity of payment methods in different markets complicates transactions for 70% of travel companies.
Jack Zhang, Co-founder and CEO at Airwallex, said: “As global travel continues to boom, travel companies increasingly rely on quick and seamless cross-border payments to surpass customer expectations at every touchpoint. However, our latest study shows that slow and outdated payment processes are increasing the cost of moving money internationally, which is eating into their profits, modest at the best of times.
“Modernising their financial operations with a unified and scalable payment solution will be critical to reducing the cost and friction associated with managing cross-border transactions. For smaller players, this can be what levels the playing field, enabling them to compete with larger, more established counterparts.”
These markets include Australia, China, Hong Kong SAR, Israel, Singapore, the United Kingdom and the United States. The survey respondents confirmed that they make decisions about payment processes and financial operations for a travel company across the sector including online travel bookings, travel operators, tours and activities, and destination management.
Rafat Ali, CEO and Founder of Skift: “Our survey of global travel executives uncovered new, unique and even surprising insights into why unified payment and financial systems are critical in meeting today’s traveller expectations,”. “Amid an unprecedented rise in international tourism, the report intends to give travel companies a framework to expand their knowledge base and build more efficient, effective and profitable businesses through modernised payment and financial operations systems.”
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