Why Open Banking is a Game-Changer for the Travel Industry

In today's dynamic travel landscape, embracing digital payments isn't just an option—it's a necessity. However, one payment method gaining traction is Open Banking, also known as "Pay by Bank."

With Open Banking, merchants receive payments swiftly, securely and at reduced costs compared to traditional methods, while consumers utilize their trusted banking apps.

Why are Open Banking payments beneficial for the travel industry?

The travel sector faces competitive pressures requiring excellence at every customer touchpoint, including payments. Many travel service providers struggle with exorbitant card fees, slow settlement processes and friction-filled experiences.

1. Reduced Transaction Costs

Open Banking enables cost savings up to 80% on processing fees. One travel agent processing £1.8 million annually saved over £17,500 yearly by switching to Boodil's solution.

2. Boosted Cash Flow with Instant Settlement

Funds land in merchants' accounts within seconds, enabling optimal cash flow management and real-time reconciliation insights. This immediate access to funds is particularly crucial for travel businesses managing multiple bookings and reservations.

3. Enhanced Conversion Rates

Open Banking streamlines payment journeys by eliminating friction points like manual data entry and lengthy refund processes, driving customer loyalty and repeat bookings. The simplified checkout process leads to higher completion rates and improved customer satisfaction.

4. Eliminate Chargeback Fraud

Authentication requirements prevent unauthorized transactions, with customers present during each payment, controlling chargebacks and disputes. This provides travel businesses with greater payment security and reduces the risk of fraudulent bookings.

Conclusion

Travel businesses adopting Open Banking position themselves for sustained success through operational efficiencies and enhanced customer experiences. The combination of reduced costs, faster settlements, improved conversion rates and eliminated fraud risk makes Open Banking an essential payment solution for modern travel providers.