In the first two instalments of our Navigating Risk blog series, we explored the concept of risk [Navigating Risk: An Overview of Travel Industry Risk] in the travel industry and how common risks, such as insolvencies, disruptions, chargebacks, reputational damage and high insurance premiums, can be better managed with data [Navigating Risk: Managing Travel Industry Risks With Data]. In this, the third instalment, we turn to a foundational aspect of running a travel business: payments.

Travel Payments: A Long-Standing Problem

The travel industry has always had a complicated relationship with payments. The payment ecosystem is challenging for all travel businesses, big or small. Many industry players are routinely exposed to long periods between consumer bookings and service delivery. This extended time frame makes travel businesses a higher credit risk for acquirers.

The problem predates the pandemic—although the pandemic made it more severe. Several high-profile failures pre-2020, such as Thomas Cook in 2019, Monarch Airlines in 2017, and Lowcostholidays in 2016, revealed the fragility of the payment ecosystem.

Several years after destinations reopened to travellers, many travel companies are still facing financial difficulties. For example, a recent report revealed the risk of insolvency for UK travel providers is not as severe as it was in 2021. However, 40% of the 5,000+ travel companies in the report’s sample group are currently in the insolvency warning area. This is significantly higher than in other industries, where an average of 25% of companies sit within the insolvency warning area.

Over the last few years, only a handful of acquirers have been willing to serve the travel industry, meaning travel providers face less choice and high costs. However, the problem extends beyond a limited pool of travel-friendly acquirers. The uncertain nature of the travel industry means providers have limited insights into their own company’s risk exposure, making it difficult to mitigate potential risks.

New models to solve enduring problems

To mitigate risk in the complicated travel payments ecosystem, companies are turning to new solutions for protecting against financial loss: trust accounts. After several high-profile failures and the uncertainty and chaos of the pandemic, providers are recognising that a more sustainable way of protecting cash flow is required. That’s where Trust My Travel comes into the picture.

Trust My Travel: Mitigate Risks with Protection and Processing

As a travel business owner, you understand the sector’s main complexities, including the challenges around payments and financial protection. That’s precisely why we created our solution—to help people like you. Our financial protection and payment processing solution was created by travel industry insiders who know the industry from the inside out.

Our layered protection solution safeguards the travel value chain to build trust between all parties, including travel providers, suppliers, and, ultimately, your customers. Your time is valuable, and that’s why we’ve created a simple subscription model that gives you transparent costs, easy setup and the ability to scale as your business grows.

Financial protection built by travel insiders

Securing financial protection for your travel business can be an overwhelming process. You’ve got several options to choose from, including travel insurance, ATOL protection, an ABTA membership, and trust accounts.

With Trust My Travel, you get an ABTA-approved Package Travel Regulations and Package Travel Directive-compliant solution that safeguards consumers should you or one of your named suppliers experience financial failure. 

Here’s how we simplify package travel protection for travel businesses:

But that’s not all. Here’s how we also ensure travellers impacted by travel provider insolvency receive an equivalent service or a refund, using our 100% financial protection and our global network of travel providers:

Operating a protection-led business model ensures that traveller funds are managed responsibly and profits are spent appropriately, therefore avoiding financial failure. 

Travellers today are wary of who they choose to purchase travel from—they need to feel assured that their funds are in safe hands should anything go wrong between purchase and delivery. When they see the Trust My Travel logo, travellers can feel assured that their payments are 100% financially protected against insolvency.

Payment processing that meets your needs

The ‘high risk’ label applied to the travel industry makes it difficult and expensive to secure the payment solutions your business needs to function. The good news is that our package travel protection solution removes those barriers to make things smoother, as they should be. 

Simplify your payment process with our fully managed subscription solution. Here’s why thousands of travel providers have chosen us:

 

• • One platform for money in, money out and protection, meaning you can choose the most suitable plan for your business and increase transaction and payout volume as you scale.

• • Pay as you go processing, meaning there’s no need for a bond, collateral or rolling reserve. Simply choose the monthly subscription plan that best suits your business, complete an online application form, and pay for insolvency protection as you process transactions.

• • Settle with suppliers pre-departure with early releases from your trust account, protected by financial failure insurance.

• • Benefit from built-in intelligent fraud protection, including a PCI Level 1 payment gateway, real-time transaction flagging and rejection functionality, suspicious card blacklisting and transaction velocity checks.

Navigating Risk: Financial Protection and Payment Processing

The travel industry has faced many challenges in its time. The complexities of the payment ecosystem, coupled with the potential for financial failures and disruptions, highlight the ongoing risks travel businesses face.

As our clients have learned, a complex problem doesn’t always need a complex solution. Trust My Travel’s straightforward payment processing and financial protection solution allows you to mitigate risk and gives you a much-needed competitive edge. Trust is more important than ever, and by showing your customers their funds are protected, they can book with confidence. 

Adopting solutions focused on effectively managing risk transforms how you operate as a business. By becoming a protection-led travel provider, you help pave the way for a more trustworthy and stable travel industry, where businesses along the travel value chain are financially secure.

If you’d like to learn more about our payment processing and financial protection solution, please don’t hesitate to contact us.