Convenience is king for business travellers

Corporate travel is back with a vengeance.

The rapid recovery of corporate travel this year is likely to breathe new life into Asia’s travel and hospitality sectors, providing much-needed relief after a challenging period.

Asian carriers like Singapore Airlines and Cathay Pacific are profitable once again, shrugging off lingering concerns about inflation and high fuel prices. Things are looking up for hotels too, with major players like Accor bullish about 2023, in part due to China’s reopening.

Although corporate travel has typically been more volatile and slower to recover than leisure travel after economic downturns, the current forecast indicates that corporate travel budgets are expected to recover to 98 per cent of pre-pandemic levels this year .

In fact, corporate travel in a quarter of Small and Medium Enterprises (SMEs) were found to return at pre-Covid levels, with 34 per cent anticipating a full recovery by the end of this year.

As corporate travellers return, so too do opportunities for businesses that cater to them. From airlines, hotel reservations down to ancillary services, merchants, and providers need to formulate strategies on how to make the most of the market recovery.

The travel industry is ready for take-off and in an age of convenience and security, one easy way to accelerate business growth across channels, markets, and buying stages is to make payments as simple and frictionless as possible.

The pandemic had a profound impact on payments, with a massive acceleration in the adoption of digital options. Accordingly, users expect a secure and convenient way to pay for goods and services.

This is particularly true for travel. However, corporate travel payments have never been simple because of multiple touchpoints that involve various merchants such as travel agencies, hotels, airlines, and insurance providers among others. Each of these merchants may have their own payment processing systems and requirements, which can add layers of complexity to the travel planning process.

This can become a huge administrative nightmare for businesses, which could consider an all-in-one business travel platform to reduce costs and complexity for travel managers.

As businesses seek to streamline their corporate travel processes, a third-party payment processor can offer significant benefits. By securely storing personal data, corporate travelers can avoid the hassle of repeatedly entering their information, resulting in a faster and more seamless process. This not only improves the experience but also reduces barriers to subsequent repeat purchases, leading to increased customer loyalty and satisfaction.

Travel is one of the industries that is most vulnerable to fraud. As such, peace of mind is particularly important for corporate travellers, who might feel a little more vulnerable than they do at home, especially in places they’re visiting for the first time.

For the same reason, being able to make purchases securely is crucial for corporate travellers, who might be unfamiliar with exchange rates or hidden processing fees. Payment platforms must be equipped with the right currency calculator tools and security protocols to offer these travellers unparalleled convenience and much needed peace of mind.

The rise of sustainable corporate travel in a new generation of payments
As the urgency of climate crisis becomes more evident, consumers are becoming increasingly conscious about their carbon footprint. More businesses are also reporting their net zero transition goals to shareholders.

While credit cards and cash are a great way for organisations to handle a high number of corporate travellers, these payment methods are not sustainable as, minting money and printing cards carry a sizeable environmental impact.

On the other hand, new generation payments such as digital wallets are a convenient, electronic way for business travellers to safely store different payment methods and access funds from their devices. One in two consumers prefer using digital wallets when travelling.

The benefits of digital wallets for corporate travellers are clear as it provides a secure and seamless experience while they are on the go. For businesses, digital payments provide greater visibility into travel spend and reduces their carbon footprint.

Convenience is king when it comes to travel
The resurgence of corporate travel in Asia and beyond presents a promising outlook for the travel and hospitality industries. As businesses look to capitalise on this opportunity, streamlining payment processes will be key.

By embracing a new generation of payments, merchants can enhance the customer experience and increase customer loyalty. Since payments are at the heart of every business transaction, the importance of making payments simple, secure, and frictionless cannot be overstated.

Patrick Foo is vice president of Southeast Asia, India, Middle East, Africa, Hong Kong, Korea, and Taiwan with PayPal, a company that has remained at the forefront of the digital payment revolution for more than 20 years.