World of opportunities: embedded finance services boost the tourism industry
Embedded finance lives in the digital world, and with Statista estimating that 78% of total tourism sales will be generated online by 2027, tourism and value-added financial services are destined to meet.
The race for the top spot in the tourism segment has begun, and one way to get there quickly is complete digitization – apart from the actual vacation – and the introduction of embedded financial services for customers.
With the help of an online survey conducted in conjunction with the Handelsblatt Research Institute and YouGov Deutschland GmbH, we explore the world of opportunities that appears on the horizon when you bring together the tourism sector and embedded finance.
Tourism is on the up
Over the next few years, the online travel market will experience a steep upward trend and is expected to grow at a compound annual growth rate of 9.88%. This means that this market segment will have an annual revenue of €1,009 billion in 2030.
Embedded financial services, together with the digitization of the tourism industry, could provide even more growth.
Credit cards are the most promising embedded finance feature
Credit cards can be used worldwide making them the ideal travel companion. They already play an integral part in booking a trip and are required as security by most booking platforms and travel providers.
Because credit cards play an important role in the customer journey, brands can strengthen their core offering through features such as bonuses, loyalty points, and cashback rewards which increase the number of touchpoints and encourage the customer to stick around.
“In the pursuit of becoming the preferred choice for consumer spending, tourism companies must pivot towards nurturing unwavering customer loyalty. This transformation requires innovation, and embedded finance is proving to be a powerful ally.”
Chief Executive Officer at Solaris