The travel industry is losing out by misunderstanding the cost of payments, according to new research.
A study by eNett and PhoCusWright found there is confusion around credit cards, with many travel agents concerned about the process despite being 37% cheaper than other methods.
The study encouraged more agencies to adopt automated systems to save money and time on manual processing and reconciliation, which reduces the cost of credit card payments despite merchant fees and airline charges.
Around 40% of the industry is thought to still manually process payments although many have concerns around fraud and realise the benefits of an automated process.
eNett is now planning to release three whitepapers to outline the costs involved to the travel industry.
“The true cost of payments is a mystery for many travel companies because hidden costs and risks often skew the picture. The research sheds light on just how much time and resource the industry is outlaying through use of out-dated and inefficient payment and reconciliation processes as well as the costs of supplier default and fraud,” said Anthony Hynes, managing director and CEO of eNett.
Virtual payment options and integration into GDS are increasingly becoming an option, with eNett and other suppliers holding regular webinars to discuss different solutions. WEX CorporatePay and Grupo Transhotel will be holding its next on 26 June at 3pm (UK time).