Payments continue to be a major cost driver in the travel industry.
According to Phocuswright’s latest research report on the subject, “World Travel Payments in 2024,” credit card fees consistently average between 2% and 3.9% across regions.
40% of North American respondents and 32% of European respondents pay between 3% and 3.9% in credit card fees per transaction. Globally, 4-5 in 10 respondents strongly agree that card processing fees are too high.
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At the high end, three-quarters of respondents in APAC express some agreement, while at the low end, 62% of respondents in the Middle East and Africa express some agreement. Please note that in some countries, such as Australia, local law requires credit card processing fees to be paid by the customer.
Alternative payment forms are low-cost alternatives to traditional payment forms. This is especially true for emerging regions such as APAC, Latin America (LATAM), and MEA. However, the low rate of adoption of AFP in the industry shows that there is a gap between cost-saving opportunities and how the industry is struggling with this change with legacy systems and processes.
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State of Global Travel Payments 2024 delves into topics such as the impact of AI on payments, fraud, changing distribution, and B2B development.
