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Why Are Travel Businesses Considered Risky Businesses?


Travel Trends 2021


Summer is just around the corner and these top 3 travel trends and predictions by industry giants share with us how this will shape the way we experience travel this year and beyond.


According to Expedia, after months of isolation 44% will take more trips in 2021 compared to 2020 and 55% report feeling extremely confident about 2021 travel.


Summer beach holiday

Local Destinations and Experiences


Time at home has made people crave the world outside more than ever. But for many, international travel will be a hassle due to covid testing and restrictions.


Many people plan to travel within the city in the medium term (7-12 months’ time), and many travelers also intend to travel somewhere they’ve already been previously for its familiarity.


Based on Tripadvisor´s 2021 research report, the U.S with just over a third of respondents (34%) are planning at least three domestic trips this year, compared to 31% of Australians surveyed and 24% of British travelers.


Travel Tech


A McKinsey survey showed that because of the pandemic, “companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years.”


In terms of technologies that would increase confidence in travel, mobile applications that provide on-trip notifications and alerts, as well as contactless payments, were among the favorite, according to a September 2020 poll. Many people want travel booking platforms to increase their transparency about cancellation policies, refund processes, and trip insurance options.


According to a February 2021 study, 33 percent of respondents expected to use travel agent apps for future travels.


Reliance on technology will only continue to grow as tech proves its worth and becomes more integrated with travel experiences. We can expect travel agents and businesses to get more creative in 2021 with new travel itineraries designed to capture the imagination of travelers who missed out on trips last year.


Workation


Working remotely has now become widely accepted brought about by the pandemic. The remote workforce has increased by 140% since 2005. People will look into taking longer trips in the future that effectively combine work and pleasure.


The number of digital nomads in the U.S. has more than doubled over the past couple years—from 4.8 million in 2018 to 10.9 million in 2020. Digital nomads are defined as people who choose to embrace a location-independent, technology-enabled lifestyle that allows them to travel and work remotely, anywhere in the world.


Workers will continue to maximize their business travel with several travelers saying they would extend any business trip to also enjoy leisure time at the destination.



The Pain Points of Payment Processing for Travel Businesses


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Travel-related businesses that are considered high-risk include but not limited to:

  • Charters

  • Cruise Lines

  • Lodging

  • Online Booking Sites

  • Ticket Sales

  • Timeshare Resellers

  • Tour Operators

  • Travel Agencies

  • Travel Apps

These businesses suffer different challenges since they can't control changes in travel plans and unforeseen cancellations of their customers.


Also, less established travel merchants are not approved so quickly. Moreover, they are usually charged higher fees and have limitations on the amount of business they can do.


Among other many reasons, fraud and chargebacks lead to their high-risk classification. Travel businesses must take payments in advance, which opens them up to high chargeback ratios and other payment disputes.

Because merchant accounts under this category are difficult to acquire, your best option lies with high-risk service providers who accept travel businesses. We can help you navigate through this process.

  • All travel merchants accepted for all segments of the travel industry

  • Open to US and international travel merchant accounts. Accept payments from US and global travelers

  • Easily accept payments from travelers who prefer to pay you from their mobile, online, or POS

  • Accept multi-currency payments so you can make it simple for travelers to pay you

  • High-volume and high-ticket travel merchant accounts will not be turned away

Come on board with us!