Seamless Journeys |💳 Why Payment Friction Is Killing Travel Margins

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📣 Editor’s Pick

Payment Friction: The Hidden Drain on Travel Businesses

Payment inefficiencies are costing online travel agencies far more than they realise: from wasted staff time to lost revenue opportunities.

This exclusive PhocusWire feature, with insights from Modulr, reveals just how deep the problem runs.

🌟Sector Spotlight

PAYMENT FLEXIBILITY INNOVATION

Airbnb Launches Reserve Now Pay Later Feature for Flexible Guest Payments

Airbnb’s introduction of the ‘Reserve Now, Pay Later’ feature marks a strategic pivot to attract more guests by offering flexible payment options. By allowing guests in the US to book domestic stays without any upfront cost, Airbnb is clearly aiming to edge out traditional hotels and rival online travel agencies, especially as travellers grow increasingly savvy and selective. The differentiation lies in the timing: payment deadlines now match up with each host’s cancellation policy, meaning guests can keep hold of their cash until “shortly before” the free-cancellation period ends—sometimes up to nine days before their stay.

TRAVEL TECHNOLOGY

Google to Pilot AI-Driven Flight Deals Tool for Flexible Travel Searches

Google is stepping up its game in online travel by rolling out an AI-powered Flight Deals tool, designed for flexible travellers seeking the best bargains. Rather than simply listing flights based on fixed dates or destinations, this innovation allows users to describe broader preferences—think “a week-long winter break in a city famous for its cuisine, with only direct flights.” The AI then surfaces a range of potentially overlooked options that still fit the bill, aligning with the growing trend of personalisation and spontaneous travel planning.

This move not only redefines how flight search functions, but also adds AI-driven context to the shopping process, helping users discover destinations they might never have previously considered. With dozens of tailored deals generated, Google aims to make trip searching less about ticking boxes and more about real exploration—positioning itself further at the forefront of smart, flexible travel planning. Expect increased competition among online travel players as AI transforms the way consumers approach holiday decisions.

PAYMENT SOLUTIONS

Studies Reveal Growing Acceptance of Digital Wallets in Travel Payment Solutions

Gen Z travellers are rapidly driving the adoption of digital wallets, with 79 percent already using these platforms and shaping a shift towards mobile-first, real-time travel payments. By 2028, real-time transactions via global wallets are projected to represent around 27 percent of all payments—a direct response to Gen Z's demand for instant, seamless financial tools inspired heavily by social media platforms like TikTok and Instagram.

TRAVEL INDUSTRY PERFORMANCE

Tui Summer Bookings Drop 2% Amid Late Trend In Highly Competitive Market

Tui’s summer bookings slipped by 2%, reflecting the broader trend of late reservations in a fiercely competitive market. Despite this dip, a modest 3% price increase and robust holiday experiences—particularly in hotels, resorts, and cruises—propelled the group to a record financial third quarter. Underlying profits soared by 38% to £321 million, buoyed by higher revenues and a strong push towards dynamically packaged products that offer greater flexibility and choice.

Strategically, Tui is stepping up its transformation efforts, focusing on integrated global platforms and digital innovations like the Tui Tours app, designed to meet growing demand for personalised travel. The promising start to winter 2025-26 bookings and positive early indications for July highlight a resilient business model, even amidst economic headwinds, heat waves, and geopolitical tensions. Adaptability, efficiency gains, and diversified offerings are proving pivotal in sustaining profitable growth.

TRAVEL AGENT INCENTIVES

Newmarket Holidays Offers 15% Discount on 2026 Tours for August Bookings

August is typically a slow month for travel bookings, but Newmarket Holidays has thrown agents a lifeline by slashing its 2026 tours by 15% for just one week. This move isn’t just generous—it’s calculated, giving agents a clear reason to reach out to old clients and those hesitating on the fence.