5 minute read
Editor's note: This article was updated on September 26, 2023, from its original publish date of May 2, 2022.
With breathtaking attractions from the Great Lakes to the Rockies, Canada is one of the world's most attractive tourist destinations. So it's no wonder 2% of the country’s GDP comes from tourism.
And though hit hard by the pandemic, tourism continues on the road to recovery: Projections show a return to pre-pandemic tourism spending by 2025. But that road may look different for tourism businesses.
Canadian tourism continues to improve
Statistics Canada reported that total tourism spending grew 2.6% in the first quarter of 2023. Domestic tourism spending by Canadian residents increased by 3.5% due to increased spending on inter-provincial air transport (+4.6%), food and beverage (+6.1%) and accommodation (+4.4%) services.
Several factors are driving the resurgence of Canadian travel, including:
- Tourists have cash to spend. During the pandemic, Canadians accrued over $350 billion in savings. Travellers are eager to spend their savings after years of constraints as domestic tourism spending in Canada increased 3.5% to $15.6 billion in the first quarter of 2023 compared to the previous quarter.
- Millennials are packing their bags. Seven in ten Canadian millennials are taking a vacation this year, over half of whom say they’re revenge travelling—making up for lost travel time during the pandemic.
Traveller preferences turn to digital
Consumer behaviours changed drastically during and after the pandemic as they learned to rely heavily on digital interactions. From booking to boarding, travellers now expect transportation providers to deliver seamless digital experiences. They expect to reserve their accommodations online or via mobile. And they expect simple, digital checkout experiences—across all channels.
Easy, flexible ways to pay are proving critical. As more travellers book their vacations online, they expect convenient payment options.
- Split payments are gaining popularity as travellers seek to share expenses in the face of rising inflation and higher living costs.
- Buy now, pay later options are emerging. Visa partnered with Air Canada in April 2022 to offer this payment option to eligible travellers to help reduce their financial burden by enabling them to pay for trips in installments over time.
Create a seamless travel experience
As Canadians “take to the road,” they have a different set of expectations. And it centers around one theme: digital. It may seem daunting at first, but payment innovations can help you create a seamless, digital experience that will make travellers feel at ease—from pre-departure to their return home.
Offer easy ways to book and pay
Online payment options make it easier for tourists to take care of payments when booking their trips. You can add more value by offering dynamic currency conversion at checkout, which makes it simple for customers to calculate the cost of their visit in their local currency. You can also capture more sales and better serve international visitors by supporting the payment methods they're most comfortable using in their home countries.
"Online payments make bookings easier for the travel business and the customer," explains Bonnie Poon, director of operations at the historic Queens Hotel in New Westminster, BC. The hotel, which had a single payment terminal pre-pandemic, began using the Global Payments ecommerce platform in January 2021.
"Now, when guests book rooms online, their payment is processed directly, instead of us having to process the charge on our terminal," she says. "That helped simplify the booking [and check in] process for our customers. It's a huge benefit for a hotel."
Offer contactless payment methods
Continue that convenience after travellers arrive by offering various digital payment options at the point of sale. Contactless payment technologies such as tap-to-pay cards and digital wallets—like Apple Pay and Google Pay—enable guests to pay without fumbling for cash or touching a PIN pad.
Contactless payments help many industries serve their customers better.
RESTAURANT: The restaurant industry has been innovative in pursuing contact-free dining experiences to draw diners back in person post-pandemic. From QR-code menus to apps that connect diners digitally with their servers, restaurants have taken every measure to put customers at ease.
TRANSPORTATION: Getting between venues during visits is more convenient now, thanks to taxis and ride-sharing services that offer contactless payments in vehicles, in apps and online.
EVENTS AND TOURS: Offering online sales for admittance to events, tours, shows and other entertainment experiences results in fewer lines and less frustration. Satisfied customers will come back for future visits and may bring more new customers the next time they return.
Give loyalty to get loyalty
Continue the positive experience after travellers leave by staying connected with them after they return home. Digital loyalty programs deliver a personalized experience through apps, text messaging and emails—removing traditional paper and plastic loyalty cards. And, since experiences are what customers revere, reward them by providing redemption options like unique events or VIP experiences.
Combine your loyalty program with a gift card offering that will make it easier for visitors to refer your business to friends and family.
Identify trends with data and analytics
Integrating payments with your point-of-sale and business management software helps you build a 360-degree view of your customers. With robust data and analytics, you gain valuable information that helps you better segment and target your customers. You'll better understand:
- Broader trends in customer buying behaviours
- How to manage and predict revenue and demand
- How to make more informed decisions for your business
- How to identify your target audience and cater to them
- Purchase patterns influenced by seasonality, weather and more
Make it a priority to learn more about your customers by analyzing your data. Then use what you've learned to optimize your business for future success.
Are you delivering the seamless experience travellers expect?
There’s no doubt that travellers demand seamless, convenient digital experiences—from booking to buying and everything in between. Ready to offer frictionless payment options and the digital experiences your customers seek? Contact us today. Or learn more about our cloud-based industry solutions online.
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