Seamless Journeys | Why Virtual Cards Aren't Going Anywhere 💳

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📣 Editor’s Pick

Why Virtual Cards Aren't Going Anywhere in Travel Payments

Virtual cards are the travel industry's favourite way to pay, but it's estimated that their total transaction revenue in travel alone will surge from $40.9 billion ito $113.8 billion between 2023 and 2028. That ringing endorsement is hardly surprising – virtual cards can offer slick, secure payments on some of the world's most extensive and trusted payment schemes, making reconciliation far more efficient and scalable for globe-spanning travel agents and OTAs.

But just as the travel sector isn't sleeping on any new trends, neither are card issuers, who hope their innovations around security, customisation and automation will continue to keep virtual cards top of the payments pile in the years ahead...

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🌟Sector Spotlight

CONSUMER FINANCING TRENDS

Gen Z Travellers Increasingly Use Buy Now, Pay Later Options For Holidays

Buy now, pay later (BNPL) plans are swiftly gaining traction among travellers, particularly within Generation Z, who are showing a clear preference for flexible payment solutions when booking leisure and business trips. For many, these arrangements make travel far more accessible, removing upfront financial barriers and allowing younger consumers to pursue experiences they might have otherwise delayed. It’s not just a passing fad; the lending industry is watching how this shift signals a broader change in how customers perceive affordability and manage their spending habits within the travel sector.

What’s compelling is how BNPL blurs the lines between traditional credit and modern convenience. Unlike credit cards, these instalment options often come with clearer terms and sometimes lower fees, attracting a new, digitally savvy demographic hesitant about long-term debt. For the wider industry, this trend underscores the need for lenders and travel providers to evolve – integrating more seamless and transparent payment processes tailored for the next wave of spenders.

REVENUE GROWTH

Panache Cruises Achieves £32m Revenue and Pursues Global Luxury Cruise Expansion

TRAVEL MARKET TRENDS

Holiday Spending Surges 520 Percent Five Years After Pandemic According To Analysis

Holiday spending in the UK has experienced a remarkable surge, with Nationwide’s analysis highlighting a 520% increase in holiday expenditure compared to figures five years post-pandemic. This isn't just a number—it signals a sharp recovery in travel confidence, pent-up demand finally translating into action, and perhaps a renewed appreciation for adventure after years of restrictions.

As travel agents, tour operators, and the wider eCommerce ecosystem respond, this spike underscores the value consumers now place on their holiday experiences. It’s a clear indication: people are prioritising travel and, in turn, fuelling a vibrant, competitive marketplace. For those in the travel and lending sectors alike, understanding this consumer renaissance is critical—these patterns drive both product innovation and the evolving expectations of customers in our industry.

TRAVEL DEMAND INSIGHTS

European Travellers Maintain Spending Focus on Travel Amid Ongoing Global Uncertainties

Despite ongoing global uncertainties, Europeans continue to prioritise travel in their spending decisions—a trend that speaks volumes about resilience and lifestyle preferences across the continent. The UK stands out as one of the strongest nations for a positive travel outlook, according to the European Travel Commission, underscoring an undiminished appetite for exploration, even as news of economic and geopolitical challenges unfolds.

What’s particularly noteworthy is the contrast between caution in other expenditure areas and the sustained willingness to allocate funds for trips and experiences. This emphasis on travel suggests a deep-rooted value placed on adventure, cultural connection, and perhaps a form of escapism that the travel sector uniquely provides. For businesses within the travel ecosystem—such as tour operators, agencies, and accommodations—this signals promising demand, and a window to innovate or tailor offerings for discerning European travellers.

STRATEGIC PARTNERSHIPS

RateHawk Expands UK Market Presence with TTNG and Hays Travel IG Deals

Strategic partnerships are proving pivotal, and RateHawk’s recent deals with TTNG and Hays Travel Independence Group highlight this perfectly. An impressive 80% year-on-year surge in net booking values from the UK isn’t just a number—it’s clear evidence of accelerated market penetration and growing trust in their offering. Such growth reflects not only a well-executed distribution strategy but also the increasing appetite for digital booking solutions among UK travel professionals.

HOSPITALITY TECHNOLOGY

HotelRunner Named Booking.com’s Premier Connectivity Partner For Eleventh Consecutive Year

HotelRunner’s recognition as Booking.com’s Premier Connectivity Partner for the 11th consecutive year is more than a badge—it’s a clear signal of their sustained excellence in travel technology. Their knack for enabling thousands of properties to thrive on leading travel platforms, by integrating extensive features and seamless connections, directly translates to enhanced business value for their partners.

What stands out is HotelRunner’s hands-on approach: contributing to product innovation, engaging in feedback loops with Booking.com, and making sure properties can handle everything from bookings to operations without hopping between platforms. In the ever-evolving eCommerce-driven hospitality sector, that kind of reliability and integration makes all the difference for accommodation providers aiming for global reach and efficiency.

💭 Editor’s Insight

How Global Tariffs Are Forcing a Rethink in B2B Travel Payments

The travel industry’s B2B payment landscape is being fundamentally reshaped by the rise in global tariffs, and the impact is more than just a line item on a balance sheet. For CFOs, Heads of Payments, and Financial Controllers at OTAs, tour operators, bedbanks, and DMCs, the challenge is immediate: every cross-border transaction is now under pressure from increased costs, unpredictable FX rates, and shifting regulatory demands.

What’s often missed is how these tariffs are accelerating a shift towards localised payment strategies and multi-currency solutions. Leading travel companies are quietly moving away from traditional correspondent banking, instead leveraging fintech platforms and local payment rails to sidestep unnecessary fees and reduce settlement times. This isn’t just about cost-saving—it’s about maintaining liquidity and operational agility in a market where supplier relationships and cash flow are more fragile than ever.

The most forward-thinking players are also using data-driven insights to renegotiate supplier contracts, sharing tariff risks and building in dynamic pricing models that can flex with market volatility. Meanwhile, regulators are tightening scrutiny, making compliance a moving target and pushing payment teams to invest in smarter reconciliation and fraud prevention tools.

For those managing B2B travel payments, the lesson is clear: resilience now depends on payment innovation, not just process optimisation. The winners will be those who can adapt their payment architecture quickly, harness new technologies, and turn regulatory headwinds into a competitive advantage.