SUNRATE, a global payments and treasury management platform, recently unveiled a new white paper at the Travel Tech Asia 2024 event. The white paper, titled “Navigating the Complexities of Cross-Border B2B Travel Payments: Practical Insights for Travel Intermediaries,” aims to provide valuable guidance for travel intermediaries in managing the challenges associated with cross-border payments.
The online travel market has experienced significant growth, with global revenue reaching nearly 600 billion U.S. dollars in 2023. This figure is projected to surpass 800 billion U.S. dollars by 2028. Online transactions account for over two-thirds of total sales value in the global travel and tourism industry, underscoring the importance of efficient payment processes for travel intermediaries.
Despite the lucrative opportunities in the travel industry, intermediaries such as Online Travel Agencies (OTAs), Travel Agencies (TAs), and Travel Management Companies (TMCs) face various obstacles. These include high transaction costs, inefficient payment processes, security concerns, cross-border complexities, and the need for effective working capital management. Such challenges can impact profitability and operational efficiency significantly.
In response to these challenges, SUNRATE’s Head of Card Business, Shawn Qin, highlighted the importance of the white paper in providing practical advice to streamline payment processes, reduce costs, and enhance efficiency for travel intermediaries. The white paper addresses six pressing issues faced by intermediaries, including cross-border complexities, high transaction costs, inefficiencies in payment processes, security concerns, regulatory compliance challenges, and difficulties in data management and reporting.
One of the key challenges for travel intermediaries is dealing with cross-border complexities, such as multiple currencies and regulatory environments. These complexities can result in expensive processing fees and administrative costs. Additionally, high transaction costs associated with cross-border payments pose a significant financial burden for intermediaries due to foreign exchange mark-ups and the volume of transactions.
Traditional payment methods like automated clearing houses (ACH) and cash can expose intermediaries to financial risks, while security concerns related to handling sensitive payment information across multiple platforms are also prevalent. Regulatory compliance is another area of concern, as non-compliance can lead to fines and penalties that impact the bottom line.
The white paper offers detailed suggestions for travel intermediaries to leverage modern payment solutions, improve operational efficiency, enhance security, ensure compliance, and navigate the complexities of the global market successfully. By adopting these recommendations, intermediaries can position themselves to thrive in an increasingly complex and competitive industry.
For more information and to access the white paper, interested parties can visit the SUNRATE website. With its commitment to providing innovative payment solutions and empowering businesses globally, SUNRATE continues to be a trusted partner for companies seeking to expand their operations across borders.
