‘Fraud & Chargebacks in Travel’ Report Suggests Ongoing Threats to the Travel Space
The travel industry was one of the sectors hardest-hit by the Covid-19 pandemic. But, although the reopening process is well underway and things are getting back to normal, the danger is far from over for airlines, OTAs, and other merchants in the travel space.
Fraud & Chargebacks in Travel 2021, a fascinating new report from Chargebacks911 and travel research firm Airline Information, debuted on October 21. The new report surveyed more than 100 respondents across the airline, hotel and travel-related sectors, offering a thought-provoking look at the scale of the chargeback challenge. The report also proposes solutions for mitigating chargeback threats and payment fraud in the travel space.
“[The travel industry] continues to lose revenue; refunds are requested on a massive scale and the ever-rising numbers of chargebacks spell the collapse of several travel providers worldwide,” says Chargebacks911 COO Monica Eaton-Cardone. There’s been a clear structural change in chargebacks after COVID-19…Merchants can’t afford to ignore this problem.”
Merchants in the travel space are more likely to engage in chargeback representment than those in other industries. Despite this, the results of the study issued a stark warning to the industry: a 10% chargeback reversal rate could prove to be a fatal blow to a travel merchant’s chances of survival in the post-Covid landscape.
Click here to download the full report.