Failed transaction payments could lose airlines and outbound travel around £5.45 billion from UK consumer sales in 2022.

Edinburgh-based payment orchestration firm BR-DGE analysed data from the Office for National Statistics and discovered fragmented payments systems across the travel sector.

Substantial growing in digital payments has put the sector under increasing pressure and now presents a considerable challenge to airlines and travel agents.

Around 13.4% of consumer payment transactions across the travel sector fail due to this increased pressure.

Most UK consumers contact airlines and agents directly via phone following failed transactions, however this complex process erodes travel providers’ profit margins and creates friction across the customer experience.

The £5.45bn figure stated by the research equates to more than three times the total 2022 first quarter passenger revenue of EasyJet (£1.49bn), and nearly double Virgin Atlantic’s pre-pandemic revenue levels in 2019 (£2.9bn).

Commenting on the data, Emily Whalley, travel specialist at BR-DGE, said: “As the sector moves into its busy summer trading period, it is clear from the data that failed payment transactions remain a significant challenge for travel retailers and online travel agents.

“Amid the disruption at airports and increasing cancellations of flights, air passengers are increasingly on the lookout for a frictionless and smooth experience from their travel providers. The research shows that payments is just another area where the sector has to work harder to make sure all passengers receive a first-class experience.”

“There is a massive opportunity here for airlines, travel retailers and online travel agents to provide high-quality payments experience for their customers. This not only reduces overheads for travel sellers but also increases customer satisfaction and loyalty by making the digital payments process seamless.”

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The UK travel sector has had a difficult two years after it took a hit from the pandemic. Failed transaction payments are one more problem facing the sector after countries around the world closed their borders to international travellers, halting flights and dropping the profit margins of global airlines.

However, despite the impact of the pandemic, the sector is seeing signs of recovery with millions of travellers booking flights over the summer. However, overbooking has caused disruption and seen the mass cancellations of flights.

In a bid to help the sector in Scotland, a collaboration was launched in March of this year to support tourism and hospitality across the Southern region through innovative use of digital technology.

The strategic partnership between destination management and marketing organisation SSDA and TTS is designed to help tourism and hospitality businesses recover from the impact of the pandemic and grow sustainably.

Britain’s traveltech sector is expected to play a key role in supporting the post-Covid recovery of the nation’s tourism industry, according to a report from Tech Nation and Traveltech for Scotland.

According to the Traveltech Report 2021, the UK boasts a thriving startup scene and strong investment in this particular industry subsector, with more than £1 billion raised by UK traveltech firms over the past three years.

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