It’s no secret that the Philippine travel industry was badly hit by the COVID-19 pandemic. In fact, it was one of the most affected sectors, with tourist arrivals plunging to a mere 1.5 million in 2020 from a high of 8.3 million in 2019 according to statistics from the Bangko Sentral ng Pilipinas (BSP). Fortunately, the sector has since seen some recovery, and the Department of Tourism (DOT) has since set an ambitious target of 4.8 million international arrivals for 2023 alone.
As a vital sector that contributes 6.2 percent to the country’s total gross domestic product (GDP), the tourism industry needs all the help it can get to fast-track its full recovery. One solution is already proving to be a boon to this beleaguered sector: online and contactless payment systems.
Catapulted to the mainstream by the same pandemic that caused the tourism sector to decline, online and contactless payment systems are now buffering tourism- and travel-related businesses by facilitating seamless transactions without the need for cash. With innovative cashless payment systems from financial technology or fintech companies such as Maya Business, small- and medium-sized enterprises (SMEs) or startups involved in the tourism sector are better empowered to improve their financial management practices and bounce back in creative new ways.
How are these innovations shaping the country’s travel industry and transforming it for the better? This article delves deeper into the impact of these technologies on the tourism sector.
The Benefits of Online and Contactless Payments in the Travel Industry
First, it’s important to understand just how beneficial online and contactless payment solutions have been to the contemporary tourism experience. Good things that have come out of the online and contactless payment ecosystem are the following:
Cashless Convenience
The convenience and speed of contactless payments make them so much easier for travelers to complete, eliminating their need to carry huge swathes of cash with them. Since cashless payments became mainstream in the Philippines, international tourists—many of whom are more inclined to carry credit cards or pay with digital wallets when traveling—have gotten more excited to travel around its beautiful islands.
Thanks to modern point-of-sale or POS terminals like the Maya credit card terminal enabling a variety of cashless payments, tourists are free to swipe their credit cards without needing to hunt for ATM machines, which may be hard to come by in some areas. What’s more, the Maya POS terminal (sometimes still referred to as PayMaya credit card terminal) also accommodates payments via established and emerging digital wallets. With a single Maya Terminal, businesses can cater to tourists’ preferred payment method and unlock a more hassle-free transaction experience.
Secure Transactions
Security is another major advantage of contactless payments. Thanks to technologies like encryption for credit card information, tourists are less at risk when it comes to fraud and theft. This instills trust in them, as well as in the Philippines as a tourist destination.
Increased Safety and Hygiene during Payment
In the wake of the COVID-19 pandemic, hygiene and safety have become critical considerations for both travelers and service providers alike. Contactless payments, as the term suggests, minimize physical contact and the exchange of cash, therefore reducing the risk of transmission and ensuring a safer environment for all parties involved. That means that tourism establishments can truly demonstrate their commitment to the health and well-being of their customers by embracing contactless payments.
How Tourism Service Providers Can Utilize Contactless Payment Solutions
Various sectors within the tourism industry can leverage contactless payment technology to enhance their services and provide a seamless experience for their customers. The added revenue this will generate will more than make up for the Maya terminal price and other costs that businesses have to account for. Below are some specific use cases for online and contactless payment solutions within the travel industry:
Hotels and Resorts
Accommodation providers can streamline their check-in and check-out processes by implementing contactless payment systems for booking rooms and purchasing additional services. This allows guests to make payments without the need for physical interaction, thus reducing waiting times and providing a smoother booking experience in general.
Hoteliers, resort owners, and other similar businesses can also integrate loyalty programs and guest recognition into their payment systems, which can further enhance customer satisfaction and inspire repeat business.
Restaurants and Cafés
Dining out at a tourism destination in the Philippines can be even more hassle-free with restaurants and cafés that have contactless payment options. This enables customers to make payments directly at their tables and minimize fraudulent credit card transactions.
Related technologies that come with contactless payment systems, like digital receipts, also make it easier for customers to track their expenses. Plus, contactless payment options—paired with other hygiene and sanitation-related protocols—allow customers to feel like they’re dining and drinking in a safe environment.
Tour Operators and Travel Agencies
Tour operators and travel agencies can offer online booking and payment solutions to travelers, allowing the latter to conveniently book tours and activities in advance. Real-time availability updates and instant confirmations will ensure a seamless booking process for a traveler, while integration with the tour operator or travel agency’s existing customer management system will facilitate efficient customer support and personalized service.
Transportation Providers
Airlines have already begun improving their ticketing and boarding processes with contactless payments, but other transportation services are sure to follow suit. With such a development, travelers will be able to use their smartphones or contactless cards to access e-tickets and boarding passes, reducing the need for paper tickets and physical document exchanges.
Attractions and Venues
Lastly, tourist attractions and entertainment venues in the Philippines can implement contactless payment systems for ticketing and in-venue purchases to ensure safe, hassle-free, and well-coordinated events. When rolled out, these systems can also ensure a smoother flow of visitors to the sites, thus optimizing operations.
Takeaway: Putting the Philippines on the Map Through Innovative and Convenient Travel Experiences
Early adoption of online and contactless payment solutions is the answer for Filipino entrepreneurs and startup owners who want to be competitive in the tourism sector. Operations can further be improved if businesses offer multi-language and multi-currency payment options that cater to the diverse needs of international travelers, such as Dynamic Currency Conversion (DCC).
And while the recovery of the tourism industry will take some time and still needs immense support from national stakeholders, solutions like the online and contactless payments will definitely contribute to the effort. Get to know the technology behind these payment systems, as well as their benefits and limitations, so that you can truly use them to grow your tourism business and put the Philippines on the map.
