Travel agents have to partner with Payment Service Providers (PSPs) to coordinate and execute international payments. That means you count on 3rd party suppliers to guarantee seamless payments.
There’s nothing wrong with that, but the problem is: 4 out of 10 travel companies have trouble managing multiple PSPs. And it’s expensive too:
- 4% of global travel sales go towards PSPs
- travel operators spend $74.5 billion on PSPs every year
- on average, travel agencies pay a 7% fee. Compared to 6% for hotels and 4.7% for airlines.
81% of travel companies plan to innovate their payments
There’s a revolution coming. And – as always – it’s about the money. Between 2008 and 2016, over 5,000 new FinTech firms were created globally, attracting $60 billion of venture capital investment.
So the scene is set. As to script, it might be good for the travel industry to take a long, hard look at the world’s growth markets. Asia Pacific travel companies, for instance, tend to be more proactive when it comes to financial innovation – just look at the monetary features of WeChat and Alipay.
- If you would like to know more before we move ahead, you can download the full research written by PYMNTS, commissioned by Amadeus. Or you could just watch the video here.
- If not, let’s dive into the top 3 reasons why you should reconsider your payment services.
#1 You’re in the middle of it
Literally. Whether you know it or not, you’re located right by the world’s FinTech centre of innovation: Belgium.
Surprising? Sure. Absurd? Not at all. Belgium is home to industry giants – such as Clear2Pay and CashForce – and recently hosted its annual Digital Week. And that’s not all, Forbes indicates 4 other reasons why Belgium is ‘punching above its weight’:
- Digital governance
- Boost from bureaucracy
- Central location
- Skilled workforce
Are you located in the Netherlands or Luxembourg? No worries, Belgium’s a hospitable country with plenty of expertise to go around. Just think of the Amadeus Benelux HQ in Brussels.
#2 Your customers will thank you
Before you make fundamental changes, your first thought should be: how will this help our customers?
In this case you’re in luck, there’s an answer. Offering an effortless payment experience on all sales channels – such as mobile wallets – increases your chances of closing the deal manifold. Yes, it’s really that simple.
#3 There’s this great, new tool…
and it’s called Amadeus Xchange Payment Platform. The new, all-in-one payment platform offers a real-time overview of all your channels, payments and PSPs. On top of that, it presents relevant data to help you make the right call, every time.
Amadeus Xchange Payment Platform helps you adjust your payment systems to the benefit of your travel business, not the PSPs. Even shorter? It makes life easier.
Are you ready to take control?
Explore Amadeus Xchange Payment Platform and enjoy your access to:
- 190 territories
- 300 alternative payment methods
- 7 card schemes
- 420 banks
- 20 payment service providers