Has the pandemic unlocked a better travel industry?

It’s no secret that Australians love to travel – but when our wanderlust went into lockdown, the travel industry was one of the hardest hit. 

The numbers weren’t pretty and, for a time, the industry ground to a complete halt. But, as passionate travellers dust off their suitcases, we ask - has the industry navigated the turbulence of COVID and what expectations do travellers have from providers for the future?

While the impact of the pandemic was unquestionably detrimental to businesses, the unexpected positive was that it offered many service providers the opportunity to assess how they offer their products, from plane tickets to car rentals, to overnight stays, and what protections are in place for consumers. The accelerated adoption of digital technologies and alternative methods of payments, has also encouraged a higher level of flexibility in how customers book their travel.

“One of the silver linings of the pandemic was that it forced us all to reassess, pivot, be creative and find new ways to do old things – and the same goes for travel. All of a sudden, travel operators were dealing with last minute cancellations due to COVID infections and travel restrictions – so they pivoted, offering more flexible cancellation policies to encourage travellers to continue booking,” said Leah Clarke - Head of Enterprise Sales at ANZ Worldline Payment Solutions.

In fact, global research from Booking.com in 2020, showed that even then customers were seeking more flexibility from their travel providers, with 45% saying they would book a trip that allowed for free cancellations, while 32% said that they would book if they could reschedule for free. This was the mindset during the pandemic, and is even more so now.

Since the Australian borders opened domestically in November 2021, and internationally in February 2022, Australia has been welcoming back international visitors, with 1.2 million international border crossings taking place in April 2022 . Despite the fact that this figure is still 34% lower than pre-COVID travel for April 2019, it’s a step in the right direction.  

Domestically, February 2022 saw an increase of 11% in overnight spend compared to February 2020, with travellers spending $5.2 billion - the highest increase in spend compared to the same month pre-pandemic, in the past two years.

The increased travel bodes well for the thousands of businesses that work within the hospitality sector, from cafés and restaurants, to tourist charters and airports.

As the industry gets back on track, the accelerated adoption of cashless payments is set to continue too. The heightened hygiene practices that emerged during the height of the pandemic entrenched cashless payment technology into businesses. Hands free, digital touchpoints like self-check kiosks at airports and some businesses shifting to digital payments only, not only freed up staff, but also helped to reduce the health risk to consumers and staff – providing a safer environment for us all.

Particularly in hospitality settings, consumers are embracing cashless transactions with 78% of Australians intending to reduce their use of cash or forego cash altogether . Another trend fuelled by reduced face-to-face interaction is the propensity for consumers to reserve tables, order and pay for their meals on their mobile devices . We’ve seen this trend come to life in Australia with QR codes posted on every table. With almost half of consumers wanting to control their dining experience through their phone, hospitality businesses can offer new ways to order and pay, leveraging built-in payment acceptance options for digital wallets and international cards.

Clarke continues, “Consumers want more flexibility and control over their own buying journeys. By offering a variety of ways to shop and pay, merchants can meet customer expectations and open up new opportunities. The rise of digital-first interactions has a flow on effect for tourists who rely heavily on their smartphones during their travel. Options that allow tourists to pay their way – whether they tap their phone or pay in-app with a mobile wallet – create more familiar and comfortable experiences. And, in doing so, businesses are able to offer additional protection to their consumers and staff, by minimising contact.”

“The key for us working with our Australian hospitality and travel partners, is to ensure we match the momentum of the industry’s ‘new normal’ as the skies open up new opportunities for growth and success. We need to ensure that the flexibility that customers are enjoying, is retained and built upon. It’s not just about getting back to business-as-usual but to taking the best parts of the past two years and building upon them to meet travellers’ evolved expectations,” said Clarke.  

While 2022 predications for travel are encouraging, it’s incumbent on the travel industry to continue to foster a new era of travel, and continue to embrace a rejuvenated travel industry that is better for providers and customers alike.

For more information about our how we can help your business, contact ANZ Worldline Payment Solutions