SUNRATE presents white paper on cross-border B2B travel payments at Travel Tech Asia

Global payments and treasury management platform SUNRATE announced the release of a new white paper titled Navigating the Complexities of Cross-Border B2B Travel Payments: Practical Insights for Travel Intermediaries at Travel Tech Asia 2024.

In this white paper, SUNRATE shares the six pressing issues impacting travel intermediaries.

SUNRATE’s head of card business Shawn Qin said: “At SUNRATE, we understand the unique challenges associated with managing B2B travel payments. Our goal is to offer practical and actionable advice to streamline payment processes, reduce costs, and enhance efficiency. As an agnostic and independent payment service provider, SUNRATE is committed to protecting the interests and data of its clients”

Issues to consider

Specific issues tackled in the white paper are:

• Cross-border complexities. Dealing with multiple currencies and regulatory environments can be complex and costly for travel intermediaries. Cross-border transactions, in particular, can incur expensive processing fees and administrative costs.
• High transaction costs. High transaction costs associated with cross-border B2B travel payments pose a significant challenge to travel intermediaries. These costs become particularly financially burdensome due to the high volume of transactions and the multitude of foreign exchange mark-ups when facilitating payments across multiple pay-out corridors.
• Inefficiencies in payment processes. Traditional payment methods such as automated clearing houses (ACH), billing and settlement plans (BSP), Airlines Reporting Corporation (ARC), and cash expose OTAs, TAs and TMCs to financial risks as they are slow and error prone. Many travel intermediaries still rely on outdated practices like manual data entry for invoicing and payments, or inefficient methods such as calling and faxing for direct hotel billing—both of which increase the likelihood of errors and slow down the entire payment cycle.
• Security concerns. Handling large volumes of financial data comes with inherent security risks, especially for travel intermediaries dealing with sensitive payment information across multiple platforms. Cyber threats are a constant concern, with a significant percentage of businesses experiencing fraud attempts each year.
• Challenges in meeting regulatory compliance. The travel industry is heavily regulated, and maintaining compliance across different regions presents significant challenges. Non-compliance can lead to fines and penalties, which adversely affect the bottom line. Keeping up with regulatory changes and implementing necessary measures is essential to avoid legal and financial repercussions.
• Difficulties in data management and reporting. Effective data management is crucial for travel intermediaries seeking to make informed decisions and remain competitive. Inadequate systems can lead to errors, missed opportunities, and ultimately, poor business performance. A common issue in the industry involves fragmented data systems that prevent businesses from obtaining a unified view of their financial and operational performance.

The SUNRATE white paper also provides detailed suggestions for the way forward for travel intermediaries, covering the key benefits and opportunities that modern payment solutions offer to travel intermediaries. 

By leveraging these tools, travel intermediaries can improve operational efficiency, boost security, ensure compliance, and position themselves to meet the demands of an increasingly global and complex market.