Lockdowns, travel bans and changing restrictions have all made it difficult for the travel industry to get back on its feet. Despite there being some opportunities for travel throughout the year, 2020 has been one of the most challenging years on record for travel businesses.
At emerchantpay, we like to look to the future and are optimistic that next year will be better. In light of this, we wanted to share the reasons why we are feeling positive that travel will make a strong comeback in 2021 and offer tips for travel merchants to lay foundations for future success.
Indicators for travel’s return
The roll-out of vaccines across the globe, increased travel intent and innovative tech products are all positive steps forward but need to be coupled with a proactive attitude and a clear strategy. To build customer loyalty and to restore confidence amongst travellers, businesses need to ensure they keep communication channels open and clearly signal any changes to their customers.
Widespread vaccination
With the UK already rolling out vaccines, other countries will likely start their vaccination programmes at the start of 2021. The timeframe for widespread, global vaccination isn’t yet certain, but it’s expected we’ll be back to near-normality by Easter of next year. There’s already been a surge in holiday bookings for the new year which indicates returning confidence from travellers. Although this isn’t a silver bullet for the travel industry just yet, it’s a very positive development.
People are planning bigger trips
The increase in holiday sales some travel businesses experienced at the end of November is a promising sign for the industry. There’s hope that travel spending will gain further momentum at the beginning of 2021 as more and more people get vaccinated. The lack of travelling in 2020 is anticipated to result in people booking bigger trips and more expensive dream holidays. In other words, the spend on individual holidays is likely to go up as many are eager to make up for the trips they missed out on this year. Combined with all the holidays that many were forced to reschedule, industry experts note that 2021 could end up being one of travel’s biggest years yet.
Advances in travel technology
2020 forced innovation across industries and travel is no exception. In order to survive, merchants have had to adapt and embrace digital, with technology companies more than happy to accommodate. In 2021, we expect to see numerous innovative new products that will help make travel safer and give travellers access to all the regulatory information they need.
IATA has been developing a “travel pass” that uses decentralised blockchain technology to keep passengers informed about changing requirements. It will provide travellers with information about testing and vaccination requirements, giving them peace of mind when they fly. However, travel merchants shouldn’t just rely on the new tech that will become available but need to work hard on brand communication to win back customer confidence.
Setting up strong foundations for 2021
In 2021, converting sales will be more important than ever as businesses try to regain lost revenue and win customer trust. Therefore, travel merchants should ensure that customers have a smooth booking journey, as disruption to the flow could result in them buying elsewhere. Making a few changes now to reflect the seamless and secure payment experience customers expect could give you a strong advantage once travel is back up and running again. Streamlining your payment flow will improve the experience for your existing customers and aid retention.
It’s important to work with a payment service provider who understands your business model and settlement needs and can tailor their solution to optimise your cash flow. At emerchantpay, we believe it’s now more important than ever to listen to our customers and truly understand how their business works. Working with us, you’ll benefit from one-on-one, expert support and a user-friendly, centralised platform. Our full-service solution means that we’ll take care of all things payments, while you work on adapting and planning for the future.
If you'd like to find out more about getting started with emerchantpay, speak to one of our payment experts today. We'd love to welcome you on board!