How Card Payment Solutions Are Rescuing the Travel Sector amidst the Pandemic

With the COVID-19 pandemic raging across the world, it is no secret that the travel industry is hurting like never before. There are almost daily reports of employee layoffs and schedule cutbacks from the top names in the tourism business. 

Yet, the travel industry is trying to stay afloat in this challenging environment and minimise its losses. Though the major credit goes to the government, the hotels and airlines have also been aided by card payment solutions. 

This isn’t a new idea. But the sale of miles and points to card companies is offering a major boost to travel businesses in dire need of capital. With that being said, let’s delve deeper into how cash card companies are rescuing the travel industry during the global pandemic.

Prepaid Card Solutions – Subsidising Travel

Prepaid card solutions are pivotal in addressing the evolving financial requirements of corporates, governments, and individuals. The solutions enable streamlined money management, control the spending, creating gift and virtual shopping cards, mobile accounts, among others. 

In the travel industry, prepaid card solutions play a crucial role in offering benefit cards, GPR (General purpose reloadable) cards, virtual cards, incentive-based and cashback solutions. 

Such flexibility, a two-factor authentication system, and incentives enable the companies to provide attractive solutions to the customers for travelling. As a result, the consumers and travel companies enjoy overarching benefits with such a partnership.

How Customers and Card Issuers Benefit From Co-Branded Cards

Customers tend to spend more on co-branded cards than proprietary ones. Co-branded cards are not only helpful for frequent fliers but also perform well for the company issuing them.

With consumers gravitating towards co-branded cards, card issuers gain from buying travel points from companies. Thus, the travel companies are eager to partner up with card issuers because they stand to gain significantly from this deal.

The pandemic and the resulting challenges the travel industry faces will affect the sector even after all this is over. With that being said, miles and point sales through cards are a type of long-term strategy for travel companies. Throughout the deal, these will bring good news to the companies’ shareholders and customers.

It means the prospect of gaining more category bonuses (as is noticeable in limited-time offers) for the cardholders. It also means better sign-up offers for new card applicants. As mentioned earlier, it’s a chain reaction in which the benefits are shared equally by the consumers and card and travel companies.

The Ideal Strategy to Focus on

No matter what the situation is, it’s less expensive and easier to hold on to existing customers than bring new ones. As a result, travel companies are focusing more on their existing customers, and the card companies are aiding them in this process.

Many travel cards have revised value propositions to provide bonus points for daily spending. The majority of the airlines have recently added bonus points on restaurants and grocery stores as a part of the core value proposition. It’s a good idea to inform or remind present cardholders of such bonuses. 

After all, most cardholders get the cards for the main bonus of travel miles. As a result, using an airline or hotel card to buy groceries is not something that crosses their mind.

Marketers from the card-issuing companies are also coming up with “spend and receive” offers in categories relevant to the pandemic. For instance, several card issuers are promoting bonus points on food delivery for the same cards that offer travel miles. 

Changing the Card Policies in the Face of the Crisis

With travel restricted in most parts of the country, consumers who applied for the card just before the pandemic hit have nowhere to use them. As for the travel companies, their revenue is taking a huge hit in the face of such restrictions. But, cash card companies are coming to the rescue of travel companies in this regard. 

While some companies have extended the time limit on the cards, others have allowed the use of these cards for other purchases. It is the former that has been proving hopeful for the travel sector. 

So, with an extended time limit on the cards, consumers will start using them as soon as the pandemic gets over. And, of course, there will be applications for cards from new consumers.

The global pandemic has hit the travellers and travel industry severely. Thus, cash card companies have come up with a new business plan, incentives, and generous policies for their cancellation. Additionally, cash cards for travel are proving to be a much-needed ray of hope for travel companies. With top names like Wibmo securing and streamlining the digital payment scenario, the use of such cash cards is only going to increase.