It’s been a short while now since World Aviation Festival, which as always, was a pleasure to speak at. And even though the news of Omicron has somewhat muddied the waters for the return to normal travel, I still feel invigorated and optimistic about the future of the industry.
As a recap, I want to share with you my five biggest takeaways from the event and what I’m excited about going into 2022 and beyond.
1.The growth of Account to Account payments
By far and away the biggest payment trend in recent times is just how quickly Account to Account payments are growing. Most of us in the industry knew it was coming, but at what speed and that it was nowhere near reaching its full potential pre-pandemic.
Accelerated Digitalisation is driving the Open Banking industry, forecasting growth to be a staggering 1079% in the UK alone between 2021-2024. This early growth in terms of users of this type of banking method is really positive to see and makes the future look very bright for Account to Account payments.
2. Build for tomorrow. Not today.
I’ve noticed a shift in thinking. Companies have started to adapt their innovation and product strategies to have more shelf-life and value for the consumer over time. Instead of trying to put out the immediate fire, or get something out as soon as possible, there’s more of a shift towards reflecting. During these uncertain times when the industry has been rocked so heavily by the pandemic, we can at least be thankful that this slowdown has allowed for more meaningful, longer-term planning. Most merchants are now shifting their thinking towards the question “What does 2023/24 look like? How can I build for that consumer?”
3. Airlines are becoming more consumer-focused.
The modern customer, predominantly Gen Z or millennial, demands an effortless digital experience and more flexibility. During the pandemic, refunds became a huge bone of contention for them. It became clear that the flexibility that they expected wasn’t really there. Cash settlement speeds and the handling of refunds / chargebacks were ranked as the top two challenges faced by companies in 2020 during the height of COVID-19 and they’re actively looking for ways to alleviate these pain points to help win consumer loyalty.
4. Lower costs and faster settlements.
All of this adaptation needed by the Airline industry is leading to some good upsides in the long run. For example, those who are looking to implement faster cash settlements and improve transaction operations are not only just left with happier customers. Those who are offering Trustly’s unique collection method are skipping out on the middlemen, meaning a much lower cost of distribution.
5. Bank on the right proposition
For the last five years, Trustly has been focusing on shaping a relevant Global Bank proposition with its distributing partners for the industry. Throughout this time we’ve built up a solid idea of what works, what doesn’t and what is missing. In my opinion, the way forward is through banks that provide automation, guarantees, real-time messaging, reconciliation and instant settlement, all delivered through proven industry specialist partnerships.
Want to read more? Get our full report on the future of travel here. https://www.trustly.net/merchants/travel/a-future-to-bank-on
Thanks for reading.
Mike Parkinson | Director of Travel @ Trustly
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