Executive Summary
Destination Management Companies (DMCs) have experienced significant changes over the past decade, as their role in the larger travel industry evolves. DMCs are shifting their business models, processes, and systems to adapt to the global digital economy, appeal to a broader array of clients, and operate more efficiently.
With the market opportunity and digital landscape shifting, it has become essential that DMCs move to more digital processes to save costs, streamline operations, improve payment security, and maintain a tailored client and agent experience throughout their entire journey. With this in mind, leaders in the DMC industry are now adopting solutions to expedite and digitalize all aspects of their destination experience and offerings.
As DMCs implement new technologies and shift towards systems that can manage many aspects of the booking and planning processes, it is important that they carefully consider the payment component. The payment experience has multiple stakeholders within the travel ecosystem, particularly as consumers and businesses are increasingly expecting fast, intuitive, and familiar payment options. While other segments of the travel space have been quicker to implement such payment technologies, the DMC industry has been slower to adapt, which can be attributed to legacy and homegrown back-office platforms and processes and the mistaken assumption that payment experiences are a negligible part of their client’s journey. But thanks in part to client feedback and changes made in other sectors of the travel industry, DMCs now understand the importance of identifying and implementing convenient, secure, and cost-effective payment infrastructure. This recognition is leading companies to meet consumer and agent expectations and streamline internal processes while also reducing costs and winning more business opportunities.
Recently, Flywire has found that the majority of DMCs currently face some combination of the following major hurdles with their existing payment options for accepting agent payments: