Seamless Journeys Weekly Newsletter: 💳 Virtual Cards in Travel

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📣 Editor’s Pick

Are Travel Businesses Overlooking Virtual Cards' Biggest Advantage?

Virtual cards have become a go-to for many travel brands when paying suppliers—but new data suggests most aren't using them to their full potential. Often praised for their security and flexibility, virtual cards are already powering a growing share of B2B payments across the sector. In fact, travel spend via virtual cards is forecast to jump from $26B in 2023 to nearly $114B by 2028.

But here’s the catch: 60% of US travel companies say they’ve yet to explore automation with virtual cards—a feature that could dramatically reduce reconciliation headaches and improve cash flow control.

Modulr breaks down the four trends shaping virtual card adoption in 2025, and what forward-thinking travel teams should be doing now to stay ahead of the curve.

👉 Read the full breakdown

🌟Sector Spotlight

TRAVEL EVOLUTION

Selling Travel is Evolving But the Fundamentals Remain the Same

Navigating the evolving landscape of selling travel poses challenges, yet unveils burgeoning opportunities. The industry's complexity remains a constant, but what is intriguing is how foundational principles in travel sales continue to endure despite the dynamic market. Travel agents and tour operators must adapt to technological advances and shifting consumer expectations, but the essence of providing unparalleled experiences and customer loyalty remains unchanged.

In this shifting environment, the focus on personalised services becomes more crucial. The industry's future lies in leveraging digital innovations to enhance customer experience while preserving the human touch that distinguishes successful travel businesses. As we embrace change, it's exhilarating to observe how resilience and tradition continue to anchor the travel industry's growth. For those in travel, embracing tech-savvy methods without losing the core value proposition is the key to thriving amidst these changes.

FUNDING INVESTMENT

Unravel Secures $7m To Enhance AI-Powered Travel Booking Platform

Unravel, the London-based travel platform, is making waves with a $7m investment round. Led by Nauta and joined by notable figures like Ben Stokes, this funding highlights Unravel's novel approach: merging influencer-driven content with AI-assisted booking. This venture focuses on simplifying travel planning by transforming engaging TikTok-style videos into actionable itineraries. As Vijay Anand, CEO of Unravel, notes, the platform avoids information overload by making planning intuitive and inspiring.

The injection of capital is not just about expanding their London workforce; it's about enhancing AI capabilities aimed at boosting video-commerce conversions. By exploiting the shifts in content consumption, Unravel aims to ride the wave of trending markets—like digital perks offered by banks—to create new revenue streams. As stated by Carles Ferrer from Nauta, leveraging mobile content trends alongside innovative tech aligns perfectly with Unravel's goals, offering a fresh revenue model within the ever-evolving travel industry landscape.

TRADE COLLABORATION

Cruise1st Launches Trade Hub for Travel Agents to Share Experience Packages

Cruise1st unveils a trade hub to offer UK travel agents its signature Experience packages, adeptly blending cruises with land tours. This initiative empowers agents to access exceptionally discounted rates and customise offerings, boosting their competitive edge in the market. Through this collaborative model, agents preserve client relationships while enhancing their product range.

TRADE PARTNERSHIPS

Visit Portugal UK Director Aims to Boost Regional Tourism with Agents

Celina Tavares, the new Director for Visit Portugal in the UK, is prioritising collaboration with travel agents, highlighting the UK's status as Portugal's top source market with 2.4 million visitors last year. Her strategy aims at expanding tourism beyond traditional sun and sea attractions like the Algarve to regions such as Alentejo and the Azores by promoting immersive experiences and local community interactions. This approach not only diversifies tourist offerings but also fosters sustainable growth by spreading tourism to lesser-known areas.

TRAVEL MARKET GROWTH

Saudi Arabia's Online Travel Market Soars with Dominant Local OTAs

The Saudi Arabian online travel market is experiencing exponential growth, fuelled by higher internet connectivity and the youthful demographic eager to embrace digital solutions. The landscape is dominated by local players like Almosafer, which controls a significant portion of both air and hotel online booking volumes. Almosafer, with diverse offerings and plans to go public, stands out with 61% of the air gross booking volume. Meanwhile, airports and airlines provide substantial incentives which foster a preference for homegrown brands, edging out global competitors in the OTA air market.

In the hotel segment, Booking.com leads with 60% and continues expanding its foothold thanks to comprehensive content and early adoption of digital bookings in Saudi Arabia. While global giants command the OTA hotel market, local brands like Almosafer maintain relevance. As the market evolves under Vision 2030, local OTAs are poised to strengthen their position by doubling their efforts in the hotel sector, promising an exciting David versus Goliath scenario in Saudi Arabia’s travel industry. This digital transformation ensures a dynamic and customer-centric future for Saudi travel, setting a new benchmark in the Middle Eastern travel landscape.

AIRLINE INDUSTRY CHALLENGES

Airlines Expected to Cut 2025 Outlook Amid Waning Travel Demand

The airline industry is bracing for a notable shift, with airlines anticipated to curtail their 2025 forecasts amidst declining travel demand. Wall Street analysts have already begun downgrading U.S. airline ratings due to a perceptible weakening in consumer enthusiasm for travel—a trend influenced by factors such as rising tariffs and economic uncertainties. This dip in demand is not entirely unfamiliar; however, experts stress the industry is not facing a downturn akin to the pandemic-era crisis but is rather experiencing strain that echoes concerns in other sectors as well.

Notably, airlines have seen a decrease in international travel bookings, particularly U.S.-Europe routes, posing challenges to an industry that has thrived on post-pandemic wanderlust. While premium travel seats may still be occupied, the projection for overall revenue growth remains questionable. With economic conditions in flux and consumer confidence wavering, airlines find themselves navigating uncertain skies, seeking ways to stimulate demand and maintain full cabins. Such a dynamic market presents both challenges and opportunities for those invested in the future of air travel.