Simplifying Travel Payments for OTAs and TMCs with Seamless Solutions

Despite inefficiencies, security risks and complaints of sub-par service, the global travel industry is undergoing an unprecedented digital revolution with  Online Travel Agencies (OTAs) and Travel Management Companies (TMCs) boldly leading the charge. 

A February 20204 report released by GlobalData indicates that in 2022, the OTA market value performance surpassed its pre-pandemic level, hitting $531.11 billion and reaching $764.69 million in 2023. Further, the report submits that the market value of this segment is expected to hit $1,214.88 billion in 2027, with a CAGR of 12.27% from 2023 to 2027. Among the factors projected to drive this growth are increase in internet penetration, the growing popularity of mobile devices and heightened demand for personalised travel experiences.

Nevertheless, while OTAs and TMCs have significantly enhanced the travel experience and are poised to contribute more value to the global travel industry , the traditional payment systems they rely on are unfortunately ill-equipped to handle the industry's unique and dynamic needs. 

The challenges faced by OTAs and TMCs in processing travel payments are brought into sharp relief by the innovative solutions that SeerBit, a Pan-African payments platform, provides to address these challenges and empower these key stakeholders to thrive.

Challenges in Travel Payment Processing

The travel industry endures unique challenges arising from its global reach and multifaceted operations. For OTAs and TMCs, effective payment management is critical to ensure operational efficiency and customer satisfaction. However, traditional payment systems often fall short, leaving businesses vulnerable to inefficiencies and missed opportunities. 

As a result, OTAs and TMCs face the following encumbrances: 

Complex Payment Workflows

Travel bookings, which often include services from various providers like airlines, hotels, transportation companies and activity organisers, result in complex payment workflows that often require significant manual effort to reconcile. 

Consequently, this leads to issues such as:

• High transaction fees: Every payment method has associated costs and without optimised systems, these fees quickly erode margins. 
  
  
• Frequent chargebacks: Cancellations, disputes and fraudulent transactions are common in the travel industry, making chargebacks a persistent problem.
  
  
• Reconciliation problem: Discrepancies between bookings and payments cause delays, impacting cash flow and creating bottlenecks in financial management.

Travel businesses require integrated solutions to manage complex workflows and gain real-time visibility into transactions.

Global Payment Acceptance

The global nature of the travel industry means catering to customers from diverse markets, each with their preferred payment methods and currencies. This results in challenges such as:

• Limited support for local payment methods: While a European traveller might rely on credit cards, an African traveller may prefer mobile money or bank transfers. The inability to provide adequate support for these methods creates friction, leading to lost sales.
  
  
• Multi-currency challenges: Travellers often prefer local currency payments, but many OTAs and TMCs lack seamless multi-currency processing. Currency conversion fees can deter customers or reduce profits.
  
  
• Inconsistent payment regulations: Regulatory requirements vary by region, adding another layer of complexity to payment processing, which require skilful navigation for businesses to remain compliant and competitive.

Fraud and Security Risks

The travel industry processes vast amounts of sensitive customer data, including personal and financial information. This makes it a prime target for fraud and cyberattacks. Some specific challenges include:

• Card-not-present (CNP) fraud: Online bookings rely on CNP transactions, which are more vulnerable to fraudulent activities than in-person transactions.
  
  
• Phishing and account takeovers: Cybercriminals often exploit customer accounts or create fraudulent bookings to steal funds or data. 
  
  
• Reputational damage from breaches: A single data breach can irreparably harm a company’s reputation, leading to lost trust and diminished customer loyalty.

How can these risks be mitigated? Your business needs a payment solution with robust fraud detection and prevention mechanisms, along with compliance with international security standards like PCI DSS.

Customer Experience Shortfalls

A seamless payment experience is integral to customer satisfaction. However, many OTAs and TMCs struggle to provide this due to issues, such as:

• Slow transaction speeds: Lengthy processing times frustrate customers, leading to abandoned bookings and lower conversion rates.
  
  
• Lack of flexible payment options: Travellers increasingly prefer alternative payment methods such as Buy Now, Pay Later (BNPL) schemes or instalment plans. Without these options, businesses risk losing price-sensitive customers.
  
  
• Confusing Refunds and Cancellations: Travel plans can change unexpectedly and customers expect clear, efficient refund and cancellation processes. Complicated procedures can lead to negative reviews and lost business.

In an industry where competition is fierce, providing a frictionless, secure and adaptable payment process is not just a critical advantage—it’s a necessity.

SeerBit: Transforming Travel, One Payment at a Time 

SeerBit offers unique payment solutions that address travel industry complexities. By tackling operational inefficiencies, global market demands, security risks and customer experience issues, SeerBit empowers OTAs and TMCs to streamline operations, increase revenue and enhance customer experiences. 

Here’s how SeerBit provides solutions to travel payment challenges:

• Simplified Payment Processing

SeerBit simplifies complex travel payment workflows, automating manual tasks to reduce errors and delays. Automated reconciliation provides real-time financial visibility, enabling seamless payment-booking matching. This streamlines operations, improves cash flow and reduces administrative costs, driving sustainable growth for OTAs and TMCs.

• Global Payment Acceptance

The global travel industry caters to a highly diverse audience with varying currencies and payment preferences. To ensure accessibility for travellers worldwide, SeerBit supports multiple currencies and payment methods. These multi-currency capabilities enable businesses to accept payments in travellers' local currencies while receiving settlements in their preferred currency, mitigating currency conversion risks. As such, this global acceptance empowers OTAs and TMCs to expand their reach and capture more markets without payment limitations.

• Enhanced Security  

According to Travel Pulse, travel and leisure was the second-most targeted industry globally for suspected fraud attempts in 2023, with a 36% fraud rate. SeerBit’s robust security detects and prevents fraudulent activity in real-time, reducing chargebacks and ensuring smooth processing of legitimate transactions. SeerBit complies with PCI DSS standards, guaranteeing the highest level of data security. Sensitive payment data is protected at every step with tokenisation and encryption ensuring peace of mind for businesses and their travellers.

• Improved Customer Experience

A seamless and secure payment process is essential to ensuring customer satisfaction. SeerBit enhances the payment experience by offering fast checkout options that make payments seamless for new and repeat customers. This level of convenience ensures an increase in booking completion rates and improves customer loyalty as travellers are more likely to return to a platform that provides hassle-free payments.

• Data-Driven Insights

SeerBit's real-time analytics empower travel businesses to optimise operations, boost revenue and improve decision-making. By providing actionable insights into payment performance, customer preferences and transaction trends, SeerBit enables OTAs and TMCs to identify top-performing payment methods, track seasonal trends and tailor offerings to specific demographics.

Conclusion

With 2024 drawing to a close in just a few short weeks, travel industry analysts agree that payment choice will be a key business driver in 2025. SeerBit empowers OTAs and TMCs to navigate complex travel payments seamlessly. A suite of innovative solutions, from global payment acceptance to data-driven insights, enable businesses to operate confidently, scale efficiently and unlock new opportunities. By simplifying processes, expanding reach, enhancing security and improving customer satisfaction, SeerBit positions travel businesses for long-term success.