Due to current developments in the travel industry, it is no secret that the cash is short and given the risk involved, the providers in the travel industry no longer enjoy a significant insurance coverage for their receivables as before. These factors force the travel companies to start navigating for alternatives and they usually request either bank guarantees or advance deposits from their buyers. An online travel agency needs to work with several providers to be able to offer the best product variety to its clients, however giving bank guarantees to each of these providers makes it impossible to survive while endangering their cash flow. In the absence of other alternatives, virtual cards shine brighter than before to secure receivables, however the high cost, compliance issues, manual work causing lost man hours and under-invoicing problems, fraud risk and the accounting reconciliation problems are still there for any company operating in the travel industry. PayParc solves these problems completely while allowing travel companies to save over 3% on each booking. The solution offered by PayParc eliminates the bad debt risk between buyers and sellers, as the amount of each booking is automatically moved between electronic wallets.
“What we have signed is an exclusive agreement so that any company that has connection with TravelgateX can pay instantly and securely through PayParc, to any of its providers. In this situation of lack of credit, we can guarantee these payments in the safest way possible,” says Pedro Camara, CEO of TravelgateX.
Adapting to change
The travel industry is an increasingly competitive sector that has seen several new layers added to its transaction circles in recent years. Outside of the crowding of the market, some external factors have also seriously impacted the industry recently. From fluctuating oil prices to the global tragedy that has been the Coronavirus, the landscape has become a hostile one in which only the companies that can adapt will survive and the decision makers should leave no stone unturned when looking for new technologies to boost their performance.
In this situation, PayParc (e-wallet systems for the travel industry) and TravelgateX (marketplace for B2B travel connections) have decided to join forces to help any buyer or seller in the travel sector to benefit from instant, automatic and safe payments managed seamlessly.
PayParc Global Solutions offers a unique electronic payments platform that has been specifically designed for the travel industry. Its ability to read booking data and convert it to automatic payment execution is unparalleled in the industry. Wallet-to-wallet transfer technology enhanced by the international payment network offers unbeatable costs when compared to the B2B payment methods currently offered across the industry.
PayParc founder, Taylan Taspinar explains: “The platform is an interface of our international payment network. The payments are executed only through the booking data received by API and are assigned to the specific booking along with the status of the transaction. The platform runs in parallel with the regular reservation flow and verifies each transaction by relating it to the reservation data, notifies each party, and prepares reconciliation reports."