Ideally, technology should make businesses safer, more efficient and more profitable. In the travel industry, the ability to use high-tech solutions for complex financial transactions can be especially important.
“I love using technology,” said Smadar Palace, founder and CEO of Food N’ Wine Vacations. “Using payment-processing technology is a tremendous help.”
As the travel industry continues its journey through a technological revolution in payment processing, agencies and tour operators are increasingly better positioned to streamline transactions while maintaining security and compliance. As the digital landscape expands, however, it’s up to businesses to determine the best use of financial technology (fintech) — and which platforms best fit their needs.
For Palace, technology improves payment management and processing in a number of ways — from automating customer payment reminders to making it easier to deal with multiple currencies and dealing with suppliers. That’s why she says it’s important to shop around for the best fintech solution — and why her company recently changed platforms.
“It was very, very important to have, first of all, a reliable company, and then you want to get good [foreign] exchange rates, because that affects your profit,” she said. “There are companies that have platforms that make it really easy for you, without a lot of the bureaucracy.”
Two elements were deciding factors in helping Palace choose which platform was right for her company. “The main reason that I moved to Airwallex was because they offered us an amazing exchange rate,” she said. “Their rates basically were unbeatable.” She also liked that the company offers multi-currency employee and corporate cards, which makes it easier for companies to manage expenses. “In the past, we had to physically go to the bank to make a wire transfer or make a special phone call. Now, we can access the payment platform from anywhere in the world, 24/7. This is a huge advantage for business professionals, especially in the travel industry, where we often spend a lot of time on the road,” she said.
Since every travel business and every financial technology platform is different, Palace’s advice to travel businesses is simple: “shop and compare. And definitely get a demonstration.”
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Facing challenges, finding solutions
Jason Block, CEO of WorldVia Travel Group, provides several reasons why effective financial technology services are crucial for today’s retail travel businesses. “One of the primary challenges is ensuring payment security and compliance while handling increasing transaction volumes across an increasing population of travel advisors,” he said. “Many agencies still rely on outdated or fragmented systems, leading to inefficiencies and security risks.”
The ideal fintech platform should match the needs of the company on multiple fronts, according to Block. “Flexibility comes from integrating scalable and secure solutions that evolve with business needs,” he explained. “Travel agencies should seek (application programming interface) API-driven payment solutions that can seamlessly connect with various booking and CRM systems.”
Scalable payment technology can also help small and mid-sized businesses compete more effectively with larger players, according to Block. “By adopting secure, automated and integrated payment solutions, smaller agencies can operate with the same level of professionalism and security as larger competitors,” he said.
Another advantage that mitigates risk is clients having the ability fill out their own personal information. According to Palace, “A key difference is that instead of manually entering card details, clients fill out their own payment information, reducing the risk of human error and increasing security. Additionally, we no longer have to worry about writing down or storing card information, which significantly reduces the risk of card data theft.”
Elizabeth Henn, founder LBAC Travel, a NEST affiliate agency in Sayville, New York, agrees about the importance of maximizing the potential of financial technology. “We are constantly navigating our way through better systems with a focus on security, improving workflow and providing ease of transacting for the advisor and client experience,” she said. “Fraud prevention and chargebacks, as well as a seamless customer experience, are the biggest challenges. We need to choose providers that offer API-based solutions, enabling easy integration with new markets and technologies, and constantly work on streamlining and automation.”
Another important benefit of using the right financial technology, according to Palace: “When clients pay directly through a merchant company or platform, their IP address is recorded. This helps protect both the business and the client by verifying their identity in case of a chargeback dispute.”
The advantage of white label solutions
White label solutions — the ability to rebrand another company’s product or service to reflect another business’s brand — can be especially attractive for travel businesses that deal with both the general public and an array of suppliers.
“White-label payment solutions and API-based integrations help travel companies with customization, scalability and security,” said Henn.
Block also praises the benefits. “White-label payment solutions and API-based integrations allow travel companies to customize their payment workflows while leveraging the expertise of specialized providers,” he explained. “Instead of building an entire payment infrastructure from scratch, agencies can partner with specialty data processing, storage and security firms to create a seamless, API-driven solution that meets their unique needs. This approach ensures that travel businesses maintain control over their customer experience while allowing specialist firms to handle (payment card industry) PCI-compliant data security, payment authorization and storage.”
What to look for in a platform
Henn says that business owners should focus on several details when shopping for a fintech platform. “The key features to look for in a payment solution would be seamless integration and automated fraud protection,” she said. “We need to always make sure the integration is focused on compliance so that we are handling the payments in a secure manner and steps are being taken on fraud protection.”
Block also named multiple must-haves. “Security, compliance and ease of use are top priorities,” he said. “A good payment solution should offer secure payment authorization and documentation, PCI-compliant storage, encryption and integration capabilities. Travel businesses must prioritize PCI compliance, data encryption and secure storage of customer payment details. The ability to avoid storing sensitive data in unsecured environments is crucial. All stored credit card information should be encrypted and only accessible via a personal encryption key, providing the highest level of protection for both advisors and their clients.”