Best Payment Gateway for Travel Websites

Online travel agencies have enjoyed a remarkable boom in recent years as people have become more comfortable booking trips via the internet.

The global online travel market was estimated to be worth $600 billion in 2023 – and that figure is expected to soar even higher, according to Statista.

But this remarkable spike in interest is unsurprising given how specialist websites have revolutionized the ways in which we research travel destinations, choose hotels and book flights.

However, a key part of running such an online venture – and one that is often overlooked – is offering customers a seamless booking experience and plenty of payment options.

Here we take a look at the broader travel e-commerce universe and what new businesses need to accept vacation package payments securely and effectively.

Challenges for travel websites

There are numerous challenges facing the online travel world, including how to differentiate from rivals, ways to build customer loyalty and using social media to help build businesses.

Obviously, a key part of the proposition is having a modern, effective website that can be viewed on desktops, iPads/Kindles, and smartphones.

Almost one third (32%) of travelers used a website through a mobile device to book travel in 2023, while 23% used a mobile app directly, according to a survey by TravelPerk.

However, there is room for this to grow.

Analysis revealed people were increasingly comfortable browsing on mobiles – this accounted for 60% of all online traffic – while 62.5% of online sales were made via the desktop.

More broadly, the survey estimated that the mobile travel booking market is projected to grow at an anticipated value of $612.5 billion (£484.5 billion) by 2031.

Properly functioning websites

Potential customers are unforgiving when it comes to websites these days. To stand any chance of being used they need to be fast, reliable, efficient and packed with information.

The good news is there are many website providers offering solutions, including WordPress, which also has a number of travel plugins available for users.

However, alongside booking management capabilities, they also need to offer secure travel transactions for new – and existing – customers.

There are plenty of benefits of open banking for the travel industry, including reduced transaction costs, better engagement with customers, and boosting cash flow with instant settlements.

What is a Payment Gateway for a Travel Website?

A proper functioning gateway is crucial to carry out travel industry payment processing in a way that leaves customers satisfied and the business in profit.

Whenever someone books a hotel, resort or tour – either online or in-person – an effective payment solution for tourism will facilitate these travel payments.

The travel payment solution includes authorizing the card and ensuring the operator of the service receives the full amount expected.

Using a trusted and reliable payment solution for travel businesses will give customers the confidence they are dealing with a reputable organization. 

There are also benefits from the perspective of the business supplying either the accommodation or tours or using a payment platform for travel agency.

These include:

• Efficient payments

A payment gateway for travel agency speeds everything up. Payments can be quickly approved – or declined – which makes life much easier for would-be customers.

• Improved security

In an era where everyone is concerned about their safety online, a trustworthy and reliable payments system will put everyone at ease.

• Better business cash flow

At the end of the day, businesses are there to make money and this means they need to receive payments in travel as soon as possible.

Factors to consider

Next, we look at how to choose a payment gateway for a travel agency and here are some of the key issues to bear in mind.

Some gateways will be offering the latest travel fintech solutions, while others will focus just on the basic tools required to facilitate payment processing for the travel industry.

It’s also important to consider the various traveler payment options, including the favored payment methods, as well as whether there’s scope to add further ones to the list.

• Security and compliance

How safe is the gateway?  Is it compliant with the Payment Card Industry Data Security Standard (PCI DSS)? Security is vital for travel industry payment processing.

• Ease of use

Is the payment gateway easy to use? Can a business get up and running quickly or will it take a team of IT engineers a week to get everything going?

• Can it be integrated?

Will the chosen payment gateway be able to integrate easily with an existing travel website so that everything is smooth and welcoming for potential customers?

• Will the customer like it?

Does it have a user-friendly interface for visitors or will they find it a nightmare to navigate? If it’s the latter then the business could easily lose custom.

• What fees are involved?

Costs can vary so it’s important to understand exactly what fees will be involved when it comes to a system used to facilitate payment processing for the travel industry.

• Are all payment methods accepted?

Businesses will also need to check if the payment gateway accepts multiple currencies and payment methods. This is particularly important for those aimed at international customers.

• Is the system future-proof?

Everything is developing at a rapid rate these days so it’s worth considering whether a payment system has limitations or whether it can easily adapt to changing circumstances.

• How much customer support is available?

Unfortunately, not everything in life works seamlessly all the time. There will be problems with every system but the key is whether you can find someone to sort it out quickly.

Bottom line

The sheer number of people looking to book hotels, tours and excursions online means that it’s never been more important to have an effective payment solution for tourism.

The global online travel market is already a multi-billion dollar industry and that’s only likely to grow with the number of businesses selling tourism-related services via websites and apps.

Therefore, today’s travel agencies need to have effective, reliable and trustworthy payment solutions in order to secure a decent proportion of the market.

The good news is there’s plenty of choice when it comes to prospective gateways so it’s important to take your time and ensure the chosen solution meets its needs.