Travel Payments Take Flight as Brits Search for Summer Sun

Payments
23.07.2024 10:55 am

As the UK experiences its coldest summer in 24 years, with forecasters predicting a European Monsoon on the horizon, travellers are on the move in record numbers and projected to spend a record €800 billion in Europe this year. However, experts at Chargebacks911, the world’s leading chargeback technology platform, have warned that if travel operators aren’t ready for the spike in transactions and unexpected global events—such as the recent CrowdStrike IT outage—they could face significant harm from fraud and chargebacks.

While 2023 was a record-breaking year for a travel industry that is still recovering from the global pandemic, about three quarters of a million people were affected by cancellations or delays in the UK due to IT failures, extreme weather events, staffing issues and strikes. Overall, delays were worse in 2023 than before the pandemic but it hasn’t dampened appetite to take to the skies.

The European Travel Commission’s (ETC) reported €800 billion figure is a 37% increase over pre-pandemic levels of €583 billion from United Nations World Tourism Organization’s data, with foreign visitors up 6% this year, setting a fresh record for Europe. While in the United States, 52% of consumers that were asked about their travel plans for 2024 said they plan to travel as much as they did last year. Another 40% expect to travel even more.

“As schools break for summer, we’re seeing huge demand for travel across the globe and anticipate new records to be set this year. However, while the travel boom is exciting, it brings some big challenges for the industry that might not be ready for the surge of travellers,” said Monica Eaton, Founder and CEO of Chargebacks911. “Overbooked flights, hotel shortages, and poor customer service due to understaffing or logistical problems lead to many unhappy customers. This in turn leads to reputational damage, or even worse, unresolved issues that could result in an increase in chargebacks that will hurt businesses and strain their relationships with credit card companies.”

While busy travel seasons can lead to an increased number of chargebacks, scammers also take advantage during this time, as they know that the high volume of transactions makes it easier for fraudulent activity to go unnoticed. They can dupe travellers with fake travel deals, or send phishing emails posing as airlines or hotels. However, Eaton confirms that the opportunity for businesses in the travel industry to take advantage of a record-breaking travel boom is still there, provided that companies optimise their customer service, security, and infrastructure.

“Businesses should ensure their customer support teams are fully staffed and well trained to handle the higher volume of inquiries and complaints, while using advanced customer service technologies like AI-driven chatbots and automated response systems can also streamline support and provide quick solutions to common problems,” said Eaton.

This is ever more vital when the travel industry also experienced what may be the largest IT outage in history, causing widespread disruptions around the world, grounding thousands of flights and leaving businesses across the globe scrambling to mitigate the damage stemming from a faulty software update from CrowdStrike on Microsoft systems.

“In times of crisis like this, transparent communication and immediate customer support are critical,” said Eaton. “Businesses should be allocating any resource they have available to resolve, or at least address, customers’ issues quickly. If not, customers will look to resolve the issue with their bank through chargebacks, a trend that’s been growing even before the chaos from Friday’s outage.”

According to Eaton, technology plays a vital role too.

“Companies should invest in advanced technologies that use machine learning to identify and block suspicious activities in real-time,” said Eaton. “It is also essential to have chargeback prevention measures in place. For example, clear communication about terms and conditions, transparent pricing, and prompt customer service able to handle disputes quickly and efficiently can help resolve issues before they escalate.”

However, Eaton maintains that travel operators shouldn’t be left alone to meet and exceed customer travel demands. Eaton explains: “We’ve established this year is set to break records for travel, so we need the industry to work together to streamline operations. Increased collaboration brings progress and tangible results, which benefits all of us that want to travel with confidence.”