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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:

Expensive payment processing costs

With the majority of DMC clientele being international and wanting to pay via credit card, cross currency card processing costs can be expensive, complex and opaque.

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Payment privacy & security adherence

It is a struggle to adhere to constantly changing data and security regulations coming from national and regional levels to ensure the security, reliability, and compliance of payments processed.

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Ability to process transactions in foreign markets

Complexity related to the FX fees are encountered by both the DMC and the client. Challenges include being able to process payments in foreign currencies and with localized payment methods and reducing fees on both sides of the transaction.

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Payer experience

DMCs often are unable to offer valued members and agents/clients a seamless payment experience with multiple, familiar payment options.

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Inefficient processes

A lack of integration with third-party systems, creating more manual work for back-office and leading to inefficiencies in business processes.

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