Top 4 payment challenges for online travel agencies
April 17, 2019
3 min read
With the value of online travel bookings estimated to hit $837 billion in 2017, it’s a good time to be an online travel agency (OTA).
But that doesn’t mean that claiming a stake in this huge market is easy. In fact, OTAs with international ambitions will face many challenges. One of the toughest of these is tackling payments. When it comes to settling transactions, OTAs face four crucial issues. Let’s explore this:
In a 2013 study by Phocuswright, 37% of online travel companies cited e-commerce credit card fraud as their single biggest payment issue. When you look at the statistics, it’s easy to understand why. While the average brick-and-mortar travel agent deals with a 0.5% rate of fraud, the average online travel supplier’s is higher, at 1.5%.
New regulations in the travel sector designed to protect consumers often force OTAs to hold a traveler’s payment until the product has been used. Usually, this means keeping funds in escrow from the time the purchase is made until the time the trip is finally taken. Handing this and dealing with the long waiting period further complicates the settlement process.
Security is also key for OTAs. With our 120+ risk checks and plugins, you can be sure every transaction is handled with the highest level of security. If needed, we also offer a secure escrow service, ensuring your consumers get the fullest legal protection and your settlements are released exactly when they need to be – without putting any extra pressure on your finance department.
Online travel payments can be complicated. That’s why we like to make it straightforward. Want to know more about how we do it? Get in touch with our Payment Experts to find a solution that works for you.
We're a global payment processor that’s driven by a passion for technology and simplifying payments. With one single, secure platform, we power transactions for businesses across the globe. We know our way around the latest techniques in artificial intelligence, omnichannel strategies and advanced fraud prevention. The dedication to our clients shows – this is where we truly make a difference.