The travel industry has rebounded strongly post-pandemic, with a notable recovery in activity and revenue.
Despite the rise of digital payment methods; Richard WazatzCEO of a foreign exchange company travelextells PYMNTS that the continued use of cash as the primary payment method for cross-border travel is fueling revenue growth for the travel industry.
“Cash is considered a reliable payment method when traveling across borders,” Wasatch said. “Many payment methods remain domestic or nationally based, and consumers who rely on cash have the confidence that cash is always available no matter where they are in the world.”
read more: Travelex CEO says cross-border travel preserves cash
Apart from the confidence that cash gives travelers, it also provides a tangible way to track spending, making it particularly valuable to budget-conscious people grappling with cost-of-living challenges around the world, Wazatz said. He said there was.
“If you have $100 in your pocket, you know how much you have left,” he said, adding that it’s clarity that is often lacking with electronic payment methods.
However, he highlighted the growing demand for the convergence of cash and digital solutions, with the recent introduction of Apple Pay and Google Pay digital wallets to Travelex’s range of products.
In addition, the company’s prepaid cards facilitate flexible currency exchange without additional fees, and Wazacz said sales of these Travel Money prepaid cards at Heathrow have increased from 1% to 15% over the past 20 months. reported a significant increase in %. Travelex’s largest base in the UK.
He noted that “there is real demand and desire” and emphasized Travelex’s philosophy that “cash and cards are the right way to meet customer needs when traveling.”
Digitizing cash access and mitigating the risk of currency transfers
Digital transformation continues to revolutionize various sectors, with even traditional brands like Travelex adopting and integrating digital solutions into their products to cater to today’s tech-savvy consumers. It has become.
At Heathrow Airport, for example, the company is currently piloting a self-service kiosk concept. It can accommodate larger transactions while offering counter service options to accommodate more complex needs compared to traditional ATMs.
Paralleling the evolution of self-service in other industries, such as self-check-in at airports and self-check-out at supermarkets, Wasatch believes that providing choice and flexibility to meet diverse tastes and needs, ultimately It emphasized the importance of improving the overall travel experience. .
“Self-service kiosks are a platform for interaction and an opportunity to expand our ecosystem, ultimately allowing people to do different things in different ways,” he said. states.
Wazacz also highlighted continued partnerships with online travel agents (OTAs), including: kayak and Expedia We offer foreign exchange (FX) cash as a solution in the early stages of travel planning.
Essentially, a customer booking next year’s summer holiday in November has the option of locking in the exchange rate at the time of purchase, should the exchange rate at the time of travel prove more favorable. You have the flexibility to reverse that decision.
According to Wazacz, this option provides customers with a valuable cost savings opportunity while mitigating the risk of currency fluctuations and ensuring a seamless, risk-free travel experience.
“When you buy a plane ticket, you buy travel insurance, and you can also buy a car and hotel in advance,” he pointed out. “[Similarly]Some customers believe that there is also a market that values fixing or retaining the currency rate at the point of purchase. ”
Changes in business and leisure travel
As several markets around the world gear up for a record travel year, Waszak said there are major changes in the mix of business and leisure travel that will impact the dynamics of the travel ecosystem. I pointed out.
He cited recent reports from airlines like British Airways, observing a decline in business class bookings as economy and economy+ bookings surged, compared to business travel. This shows a significant increase in leisure and non-business travel.
“this [trend] “Business and leisure travelers behave differently and have different needs, so it’s clearly impacting the ecosystem,” he explained.
Despite these current changes, business travel will gradually recover as organizations balance the benefits of technology with the value of in-person meetings and interactions, he said.
He further added that increasing point-to-point travel and decreasing reliance on hub connectivity is another important factor, especially in China, where large regional airports offer direct flights to multiple international destinations. He emphasized that this is a trend.
Overall, Wasak said this year’s trajectory shows continued growth and transformation in the travel industry, with “customer appetite for cash increasing.” [remaining strong and] It hasn’t declined. ”
