Key to tapping Asian travel market is payments

October 30, 2017

 

The eNett team recently exhibited at ITB Asia, the biggest travel trade event on the continent. It’s always been an important market for us, and it continues to be so. Today our customers transact in 29 Asian countries and growing. But it’s also an increasingly attractive market for the wider travel industry.

Asia as a region has seen huge growth in outbound tourism, in keeping with the global trend for greater international travel. The number of outbound trips from Asia grew by 11% in 2016, the highest growth by any region[1]. And of all the Asian countries, China is supporting the growth as it continues to be the biggest source of outbound tourism in the world. But how can travel companies outside China get in on the action?

In an increasingly competitive landscape, offering a range of payment methods is becoming a key factor in purchasing decisions. This stands to reason, the broader the choice you offer consumers, the better the customer experience and the more likely consumers are to convert. Especially when it’s their tried and trusted payment method. For China, there are a number of options including Alipay, UnionPay and WeChat Pay. It’s straight-forward enough for travel companies to add these to their websites, but the real issue is that there are very few travel suppliers outside of China who accept these types of payments.

For me, there’s a simple solution to a complex problem. Instead of looking to travel suppliers to change the way they accept payments, travel companies should change the way they pay travel suppliers. Passing through cards brings very little value to travel companies. So why not have acceptance of payment methods like Alipay and WeChatPay at the front end, then pay suppliers with universally accepted payment methods like Virtual Account Numbers (VANs) in the back-end?

VANs are already the most popular way for large agencies to pay hotels after traditional payment methods according to travel industry research authority Phocuswright. The reason for their popularity is simple. 16-digit Mastercard numbers are generated for each transaction and processed like a normal card payment. As they’re unique and integrate with existing booking and property management systems, they are an easy and safe way to make payments. They also benefit travel suppliers. VANs reduce their risk of fraudulent card transactions. That’s probably why eNett VANs recently won Best Travel Payment Solution Provider at the Travelmole Awards in Asia for the second year in a row.

In an increasingly global environment, travel companies should be making it a priority to expand their payment options in the front-end to drive conversion and enhance customer experience. By having a universally accepted payment method like VANs in the back-end, matching the payment demands of Asia, or for any other region, is easier than ever.

 

To find out more on how VANs can support your business, click here.

[1]  UNWTO World Tourism Barometer 2015/2016

More Blog Posts

05 December 2018

Why travel agents (and airlines!) should jump aboard the VAN wagon

If you work in travel and tourism, you’ll no doubt have heard at least some discussion around the acceptance of payments between airlines and travel agents. Click here to read the view of our CEO Anthony Hynes.

Read more

14 November 2018

HOW ASIA IS CREATING A BOOMING TRAVEL INDUSTRY

According to the World Travel and Tourism Council, five of the world’s ten fastest growing tourism cities are in Asia, putting the region at the forefront of tourism in the foreseeable future. Compared to major western economies, such as the U.S., U.K. and Germany, where GDP grew at less than 2.5% year-on-year in 2017, the APAC market grew at a much faster pace. China’s GDP, the second largest worldwide, increased by 6.9% in 2017, whilst India, rose by 6.6% during the same period.

Read more

26 September 2018

Technology and travel – the past, present and future.

Over the past 20 years, technology has played a role in the growth of the tourism and travel industry. This blog explores recent technological advances and how technologies like big data, artificial intelligence and digital platforms can be harnessed to boost growth and improve the customer experience.

Read more

03 September 2018

Why the travel industry should take a leaf out of Amazon’s book

It’s predicted that Amazon, the $900+ billion tech giant that is revolutionising customer experience , may disrupt the online travel industry next. So what can online travel agents (OTAs) learn from the retail giant to ensure they too do not get left behind?

Read more

31 July 2018

European summer 2018: experience trends are changing travel industry traditions

European summertime is a notoriously busy period for the travel industry, as travellers all over the continent jump at the chance to book flights to seek out sunnier destinations. In the UK, some airports have claimed that 2018 will be the “busiest summer ever”, expecting millions to pass through their doors between July and September.

Read more

25 June 2018

Nine milestones since 2009

Yesterday marked nine years since we started the eNett journey back in 2009. From day one, our aim has always been to shake up the industry by helping travel companies take the cost and complexity out of payments. And the proof is in the pudding, as the uptake for Virtual Account Number (VAN) technology has taken eNett from strength to strength.

Read more

29 May 2018

Our Vision for GDPR

The European Union General Data Protection Regulation is coming into effect on 25 May 2018. eNett believes personal data, privacy and security are of the utmost importance for all. In line with this, we are in the process of making changes globally.

Read more

17 May 2018

How OTAs are navigating the changing landscape of the travel industry

Nowadays, travellers have many options available to them to help choose destinations, compare prices and make reservations independently and easily. Competition in the travel industry is high, and margins are low. It’s clear that online travel agencies (OTAs) can’t do business in the way they used to.

Read more

11 April 2018

How fraudsters are targeting OTAs

Fake hotels are fast becoming a massive issue for OTAs, leaving them out of pocket. And they’re becoming ever more sophisticated and believable too. What can OTAs do to protect themselves from this growing threat?

Read more

22 February 2018

Costing US$21B a year - it pays to know about fraud in travel payments

In 2017 the impact of fraud is estimated to have cost travel intermediaries US$21B. By 2020 the impact of fraud is expected to cost US$25B, driven by both a migration from offline to online, and an expected uptick in the rate of fraud. Understanding fraud and its true impact and cost to travel businesses is the first step to combating it.

Read more

07 February 2018

Future-proofing your business for 2018

Anthony Hynes gives his top four considerations travel companies should be thinking about to get ahead in 2018.

Read more

12 December 2017

A Year in Review for Travel

2017 is shaping up to be a record-breaking year for the travel industry. eNett MD and CEO, Anthony Hynes, recaps of some of the highs and lows over the past year, and ways travel companies can continue the growth trajectory in 2018

Read more

16 November 2017

Tackling Fraud in the Travel Industry

As part of International Fraud Awareness Week, eNett MD and CEO, Anthony Hynes gives his view on how travel agencies can tackle increasing levels of fraud in the travel industry.

Read more

27 September 2017

We’re backing World Tourism Day’s drive for sustainable tourism

Travel and tourism grow every year. Many underprivileged communities across the globe are being displaced - especially those in high-growth travel destinations. 'Repay the eNett Way' is our hands-on approach to make a difference in these communities.

Read more

29 August 2017

Great employee experience = great customer experience

A unique value proposition is one thing, the second step you take when launching a business is just as important.

Read more

01 August 2017

How Virtual Account Numbers Simplify B2B Travel Payments

Travel agencies are wasting time and money - it doesn't need to be this way. There is a solution today, it's faster, easier and safer than many other traditional methods too!

Read more

22 June 2017

Eight Entrepreneurial Essentials

From a tiny no-frills office near Heathrow airport, to offices in Asia, Australia, Europe and America just eight years later - what a journey!

Read more