Table of Contents
- 1. Providing a Variety of Payment Options
- 2. Reducing Integration Burden
- 3. Offering Seamless Payment Experience
- 4. Integrating Advanced Payment Options like Saved Cards and Closed-Loop Wallets
- 5. Minimizing Payment-Related Costs Via Payment Routing Mechanisms
- 6. Using Payment Analysis and Reports to Build a Strong Strategy
- Conclusion
According to a recent study, the transformation of the travel industry is set to accelerate, with an expected 14% increase in technology investments planned for 2024. The need to address increasingly complex challenges, particularly in payment technologies, drives this growth. As travel agents adapt to these changes, efficient and reliable payment solutions have become a critical focus.
Payment orchestration is already significantly impacting the e-commerce sector; therefore, several use cases exist in the e-travel world. By streamlining the payment process and offering greater flexibility, payment orchestration is proving to be a game-changer in e-travel, helping travel agencies meet the diverse needs of their global customers.
This article will explore six key reasons why payment orchestration platforms are essential for success in the online travel industry.
1. Providing a Variety of Payment Options
When customers reach the final step of booking a trip, any roadblocks in the checkout process, such as the absence of their preferred payment method, can result in cart abandonment. A study by Baymard Institute showed that nearly 13% of customers abandon their purchase if their preferred payment method is unavailable.
By utilizing payment orchestration, travel agents can prevent this by offering an extensive range of options that cater to different demographics, whether younger customers prefer digital wallets or international travelers require local payment providers.
Payment orchestration allows travel agents to meet this demand by providing multiple payment methods such as credit cards, digital wallets, and buy now, pay later solutions. This wide range of payment choices ensures that customers can pay using the method they feel most comfortable with, reducing friction in the checkout process.
With a solution like Craftgate, a payment orchestration platform, online travel agents can access a broad network of payment service providers (PSPs) through a single integration point.
2. Reducing Integration Burden
Integrating individual PSPs can be complex and time-consuming for online travel agencies. Each payment service provider often requires separate integration, which involves unique APIs, technical configurations, and ongoing maintenance. This situation can drain resources significantly, especially for companies that want to offer a broad range of payment methods to cater to a global audience. Not only does each integration take development time, but it also requires regular updates and troubleshooting, leading to operational inefficiencies and increased costs over time.
As mentioned above, Craftgate solves this issue by offering a unified API, which allows agents to access multiple payment providers through a single integration. Rather than managing separate integrations for every PSP, they can tap into various payment methods, including credit cards, digital wallets, and localized payment solutions, all through one central platform. This significantly reduces the technical complexity of expanding payment options, enabling travel agencies to offer a broader range of payment methods without reconfiguring their system for each new provider.
3. Offering Seamless Payment Experience
One of the most crucial aspects of running a successful online travel agency is offering a seamless customer experience, especially regarding payments. In today’s highly competitive online travel market, customers expect a smooth, hassle-free payment process that aligns with their preferences.
Moreover, a flexible and smooth payment process contributes significantly to customer satisfaction. Since travel is often an emotional purchase, any inconvenience during checkout can create frustration or doubts about the overall service quality. A seamless, flexible payment experience ensures customers are dealing with a professional and trustworthy travel agency.
4. Integrating Advanced Payment Options like Saved Cards and Closed-Loop Wallets
Closed-loop wallet allows travel agents to create wallet accounts where customers can deposit funds for future bookings, upgrades, or additional services. This feature offers greater flexibility, making it easier for customers to manage their travel budget while enjoying a faster checkout experience.
By integrating saved cards and closed-loop wallets, travel agents improve the user experience and foster customer loyalty through rewards or bonuses tied to wallet usage. These advanced payment options help agents stand out in a competitive market, encouraging repeat business and building long-term customer relationships.
On the other hand, card storage can enhance conversion rate by providing an easy checkout process without entering card information. At this point, payment orchestration platforms help agents integrate such applications into their payment steps.
For example, Craftgate enhances customer convenience by offering advanced payment features like saved cards and closed-loop wallets. Saved cards allow travelers to securely store their payment details, eliminating the need to re-enter information for repeat bookings. This streamlines the checkout process, encouraging customers to return and reducing the chances of cart abandonment.
5. Minimizing Payment-Related Costs Via Payment Routing Mechanisms
In today’s highly competitive digital economy, businesses—especially those operating in the travel and e-commerce sectors—constantly seek ways to optimize costs. Transaction fees can quickly add up, eating into a company’s price. This is where smart payment routing mechanisms come into play, offering an effective solution to minimize payment-related costs.
Smart payment routing directs transactions to different payment service providers based on predefined rules. These rules can be based on factors like transaction fees, providers, or currency. With a smart routing system, businesses can ensure that each payment is processed cost-effectively and efficiently.
For example, instead of sending all payments through a single provider, a business can route transactions through the provider with the lowest fees or the highest approval rates for specific types of transactions. This flexibility can result in significant savings, especially for companies that process high volumes of transactions.
6. Using Payment Analysis and Reports to Build a Strong Strategy
A robust payment strategy is built on data-driven insights. Payment reports clearly show a travel agent’s financial performance, including transaction volumes, revenue growth, and payment trends.
Payment analysis helps companies identify cost-saving opportunities by reviewing transaction fees, currency conversion costs, and payment conversion rates. Businesses can optimize their payment strategy to more cost-effective options by tracking these metrics.
At the same time, payment data plays a critical role in risk management and fraud prevention. By monitoring suspicious activity and high refund rates, companies can refine their fraud detection systems, implement more robust security protocols, and reduce financial losses.
Conclusion
In an increasingly competitive digital landscape, online travel agents must leverage advanced payment technologies to stay ahead. Payment orchestration platforms offer the flexibility and efficiency needed to handle the complexities of global payments, making them essential for success in the online travel industry.
Craftgate payment orchestration platform enables travel agents to access various payment providers without requiring multiple integrations, significantly reducing the technical burden.
Craftgate also;
- provides a seamless payment experience through advanced options like saved cards and closed-loop wallets,
- enhances customer satisfaction, streamlines checkout processes, and fosters loyalty,
- helps businesses navigate potential downtimes, ensuring uninterrupted service,
- minimizes payment-related costs by directing transactions to the most cost-effective provider,
- offers detailed payment analysis, reports, and valuable insights into financial performance.
These features allow travel agents to optimize payment strategies, reduce operational inefficiencies, and ultimately create a more satisfying customer experience.
To provide these experiences to your online travel business, contact us here.
