New technology, culture shifts, and changing consumer behavior have all served to radically alter the framework of the travel commerce industry – as well as economic factors such as the cost of fuel and other political issues impacting travel.
And in the realm of payments, travel commerce merchants are definitely noticing the changes come thick and fast. That’s why, in this article, we’re taking a look at some of the biggest trends reshaping the travel commerce landscape. Read on for more.
1. Alternative Payment Methods
According to one recent report, 34% of travel companies around the world claim that they are planning to integrate alternative payment methods into their ecommerce stores. By doing so, these companies clearly hope to tap into new customer bases by providing them with the payment options they desire.
With this in mind, we anticipate that new payment methods like Buy Now, Pay Later (BNPL) and digital wallets will become more popular in the coming year. Merchants who have not already enabled these payment methods might, therefore, want to take the opportunity to begin integrating them.
2. Real-Time Payment Routing
Booking a trip or grabbing optional extras while travelling can often be an arduous task for consumers, especially when they are in a hurry and need to book a trip at the very last minute. This customer segment can be harder for travel companies to reach, and so new technology that can make payments easier for them is vital.
That said, we see real-time payment (RTP) routing as becoming more important in 2025. This payment innovation involves directing a payment to the correct financial institution or processor to complete an electronic fund transfer. This allows payments to be made instantly, which is very important for last-minute journeys.
3. AI Fraud Prevention
With ever more cybercriminals now employing AI to carry out digital attacks on vulnerable companies, travel commerce merchants will be forced to adopt the same tech to counter them and protect valuable payment data.
We believe that the majority of travel commerce enterprises will soon begin integrating AI into their security systems, particularly for fraud detection and automated threat monitoring, as well as to help streamline and remove any redundant steps in the payment process.
4. Cross-Border Payment Optimisation
Cross border payments have become increasingly important to travel commerce enterprises, with 75% of travel companies now earning over one-quarter of their revenue from cross-border payments. And, of course, the bigger the travel company, the more countries they will operate in. The more borders they cross, the more complex their payment processing becomes.
With this in mind, travel commerce merchants looking to tap into foreign markets will be increasingly looking to update their outdated payment systems, or optimize their platforms to accommodate cross-border payments in a way that improves the overall customer experience.
5. Mobile Pay
Mobile payments are only expected to increase in 2025, with more and more customers looking to book their trips and their travel extras via smartphones or tablets, rather than on desktop.
Keeping this in mind, it’s imperative for travel commerce merchants to ensure their stores are optimised for mobile users, and include features such as in-app purchases and contactless payments to hook mobile-dependent customers.
CellPoint Digital is committed to sharing industry predictions about the payment landscape in the travel commerce space, and discussing the emergent trends that are changing the game.
So, if you’d like to learn more about what 2025 holds for merchants in this space, then reach out to us now.
