Seamless Journeys | 📱 Mobile Now Leads Travel Bookings

Plus: The Hidden Cost Behind Every Booking (And How to Eliminate It)đź’¸

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Welcome to Seamless Journeys, your go-to resource for finance professionals in the travel industry. Each week, we deliver insights on optimizing travel payments, enhancing efficiency, and navigating finance innovations. From regulatory updates to working capital strategies, we help you streamline transactions and drive financial success in the travel sector.

📣 Editor’s Pick

Travel finance is full of moving parts—but the biggest drag on performance? Hidden costs buried in your payments process.

Manual reconciliation. Delayed settlements. FX inefficiencies. These aren’t just operational headaches—they’re margin killers.

🔍 Modulr’s latest research reveals:

  • 64% of OTAs still make bulk supplier payments 

  • 91% of travel sellers don’t see growth from current payment methods 

  • 96% say their payments could be more efficient—and they’re right

Embedded, automated payments aren’t just a nice-to-have—they’re your edge:

  • Cut admin time and human error

  • Improve working capital and cash flow accuracy

  • Strengthen supplier relationships with faster, more reliable payments

  • Unlock new business intelligence through richer payments data

đź’ˇ Hidden costs aren’t inevitable. Find out how Modulr helps you eliminate them. 

🌟Sector Spotlight

TRAVEL TECHNOLOGY SHIFT

eCommerce has fundamentally reshaped how we book travel, with mobile phones now being the go-to tool for most consumers, including for booking taxis and public transport. It's surprising, though, that while one might expect tech-savvy Gen Z to spearhead this change, their preference for computers when booking reveals a counterintuitive trend; many still favour traditional browsers, akin to baby boomers. This reflects Gen Z's extensive computer use for academic purposes, creating an intriguing pattern where familiarity trumps innovation in certain travel booking experiences.

Research remains at the heart of the travel buying process, with smartphones proving invaluable for both planning and booking. Consumers meticulous about getting the best deals will find that merchants can sweeten the deal by enhancing rewards programmes linked to mobile bookings. Insights from detailed surveys expose the nuanced preferences of different age groups; as mobile phones grow more sophisticated, adapting to these consumer behaviours will be crucial for businesses eager to thrive in this transformed industry landscape.

AIRLINE SURCHARGE ADJUSTMENTS

France's new eco-tax has taken flight with low-cost airline, Transavia, passing the full cost increase onto passengers. From 1 March 2025, economy passengers flying within France and Europe will face a tax of €7.40 per flight—a notable rise from the previous €2.63. Distances outside Europe see a hike from €7.51 to €15, marking a significant additional cost for globetrotters. This tax, embedded in France's 2025 budget, hits all flights departing the country, even affecting prior bookings, demonstrating a keen push towards financial sustainability.

While some may grumble at this unexpected expense, let's consider the broader view: the eco-tax aims to bolster environmental solidarity through financial responsibility. Transavia has moved swiftly, updating ticket prices online and crafting communication to ensure passenger awareness. Yet, unlike other airlines remaining silent on their approach, Transavia decisively prioritises transparency despite potential traveller frustrations, marking a turning point that could reshape price structures across aviation. While unwelcome for some, these changes underline a potent shift towards balancing air travel with environmental obligations.

PAYMENT INNOVATION

Virtual cards are gaining traction due to their convenience and spending control benefits, especially in travel payment scenarios. However, persistent issues affect their widespread adoption. Hotels often fail to accept virtual cards, posing a significant hurdle for frequent travellers. The crux lies in virtual card transactions being 'cardholder not present', leading to acceptance issues at hotel receptions.

Advancements such as API integrations are promising solutions, allowing virtual card confirmations to enter hotel systems seamlessly. Yet, challenges like invoicing remain. As Hilton integrates these APIs globally, other hotel chains are anticipated to follow suit, potentially boosting acceptance rates by 25% by 2025. While virtual cards mature, they still require further integration and education efforts to fully realise their potential in the corporate travel landscape.

TRAVEL INNOVATION

Lastminute.com is enhancing travel experiences using Amadeus' NDC (New Distribution Capability) technology, aiming to provide a seamless and personalised booking process. This partnership taps into the cutting-edge developments of the digital economy, ensuring that travellers receive tailored offers and smoother transactions. With NDC, lastminute.com can access richer airline content, opening a new realm of possibilities for both the company and its customers. This innovation underscores the importance of aligning technology with consumer needs, a trend that's increasingly shaping the future of eCommerce travel solutions.

Supporting this technological shift are cookies, which play a critical role in customising user experience by storing preferences and tracking interactions. Though these digital tools offer personalised content and pertinent advertising, transparency remains pivotal in maintaining user trust. In compliance with privacy standards, users retain control over their data preferences, a nod to the ongoing evolution in digital user rights and advertising dynamics. Ultimately, such technological advancements empower companies like lastminute.com to meet the evolving demands of modern travellers efficiently.

STRATEGIC PARTNERSHIPS

Ryanair has struck a significant agreement with Expedia Group to distribute its flights via Expedia's brands like Hotels.com and Vrbo. This strategic partnership grants travellers enhanced access to Ryanair’s extensive short-haul network covering over 230 European destinations. A notable perk for customers, especially those based in the US and Europe, is the direct integration with their myRyanair accounts, bypassing the airline's often criticised online verification process.

This new deal signifies Ryanair’s progressive approach to corporate travel by aligning with several major distributors including Amadeus and SAP Concur. Greg Schulze of Expedia highlights the synergy, stressing that this collaboration enhances travel choices and value, offering unique routes across Europe. The move underscores a growing trend of airlines leveraging third-party platforms to widen reach and streamline customer experiences—a promising shift for both leisure and business travellers looking for convenience and expanded options.

AUDIT BREACH ANALYSIS

EY faced a hefty ÂŁ4.9m fine for falling short of auditing standards in Thomas Cook's financial statements, ultimately linked to the travel giant's downfall. The Financial Reporting Council (FRC) pinpointed crucial lapses, particularly in assessing the company's going concern status amidst its dire financial straits. The audit, critical in determining Thomas Cook's operational viability amid a ÂŁ1.7bn debt, was found lacking in professional scepticism and depth.