Boosting Traveler Conversion: How a Global OTA Simplified Complex Bookings with FT3Pay
Booking Conversion Rate:
Increased by 35% with flexible payment options
Chargeback Disputes:
Reduced by 60% through tailored risk tools
Partner Settlement Time:
95% faster settlement to global travel partnerse
About The Client
An online travel agency (OTA) specializing in curated, multi-destination international tour packages. They work with a network of hotels, tour operators, and suppliers across the globe.
Challenge
As the OTA expanded its customer base, its generic payment processor couldn't handle the unique complexities of the travel industry. This created significant barriers to growth:
Lost High-Value Bookings: They were losing potential customers for their premium packages because they couldn't offer flexible options like installment plans or "Buy Now, Pay Later" (BNPL).
High Chargeback Rates: Cancellations and disputes, inherent to travel, were leading to a high volume of chargebacks. Their processor's one-size-fits-all approach put their merchant accounts at risk.
Delayed Partner Payouts: Manually reconciling high-value bookings and settling funds with dozens of international partners was slow and inefficient, straining supplier relationships.
Poor Currency Conversion: Unfavorable FX rates on international customer payments were eating into their already thin profit margins.
Their payment system was actively costing them revenue, damaging partnerships, and increasing their financial risk.
Solution (FT3Pay Intervention)
FT3Pay delivered an integrated solution that turned the OTA's payment infrastructure from a major weakness into a competitive advantage, built for global scale. To tackle low conversion on high-value packages, we implemented Flexible Payment Options, including BNPL and partial deposit support. This immediately resonated with travelers, resulting in a 35% increase in booking conversion.
At the same time, our Travel-Specific Risk Management tools, designed for the industry's complexity, were deployed to effectively manage disputes. This led to a 60% reduction in chargeback disputes, securing their merchant accounts and lowering administrative overhead.
Operationally, the platform automated the complex reconciliation process, enabling Real-Time Partner Settlement that was 95% faster and strengthened relationships with their global suppliers. Finally, by processing all cross-border payments with Smart FX, the system protected the OTA's margins on every international booking, leading to a 5% overall increase in profit margin.