Мобильный 1 Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021May 2021June 2021July 2021August 2021September 2021October 2021November 2021
News Every Day |

Why Booking.com has Made Payments a Strategic Priority

Question: When is a global travel conglomerate not a simply global travel conglomerate?

Answer: When it’s also a FinTech.

Discussing new initiatives during the recent third-quarter earnings call, Booking.com CEO Glenn Fogel told analysts that the company had made its new internal FinTech unit focused on payments, along with its ‘Connected Trip’ initiative, two of the strategic cornerstones for growth as the travel industry moves away from months of COVID-related restrictions by fits and starts.

Building out an in-house payments infrastructure and bringing travel squarely into the connected economy by enabling consumers to book and pay seamlessly are both revolutionary as evolutionary steps for the 25-year-old platform behind travel brands like Priceline and KAYAK.

And by its own admission, the company still has work to do to create a global end-to-end travel ecosystem that does it all — including payments — and enables monetization in ways that were difficult, if not impossible, before.

Optimizing that ecosystem is a top priority for Booking.com senior Vice President of FinTech Daniel Marovitz and his team of 400, he recently told PYMNTS’ Karen Webster. And making it seamless has taken on increased urgency.

Good Ideas Give Way to Great Experiments

Twenty five years is a long time to beaver away at making the online travel experience better and more efficient. Seamless. And by Marovitz’s own admission, the collective “we” in payments, and the collective “we” as in the traveling public, have gotten pretty comfortable with the improvements in the experience over the last decade, in particular.

That said, behind the scenes, there remains turbulence.

“The one area that I think we haven't made a lot of progress … is the financial friction of travel. It has a few characteristics which are distinctive relative to other categories.”

The future nature of the booking and when payment is collected are chief among these frictions, characteristics of the travel experience that became front and center when cancellations surged as a result of COVID.

New PYMNTS research shows that 44 percent of U.S. consumers who made a travel booking in the last year canceled or rescheduled out of concerns over COVID, wreaking havoc with travel payments and highlighting weak links in companies’ customer experience.

“We went from being this…FinTech and payments business to being a refund business for a couple of months, dealing with these declarations of force majeure, and even reservations which were non-refundable were suddenly refundable. So that was interesting,” he said.

Other points of friction include the seasonality of destinations, the evolving nature of how payments are made and processed, foreign exchange (FX) and payments costs.

All areas where Marovitz said Booking.com is gaining ground through platform experimentation and a smart use of data.

A major proponent of A/B testing, he said that he tells new employees when they join that Booking has no real interest in their good ideas but whether they can “design a good experiment.”

“We have incredibly rich data going back 25 years because the company adopted this data-centric approach 20 years ago,” he said, adding that, like Amazon and Google, Booking is very structured and disciplined about data and database decision-making. And using it to find frictions, solve for them and monetize them for the benefit of their platform customers.

Marovitz said that Booking’s data is helping its travel partners better manage cash flow in these uncertain times.

He said that Booking has developed a predictive algorithm it calls a NITS score — meaning “no intent to stay.” The algorithm helps Booking to predict, based on historical behaviors and cohorts, whether a reservation is likely to stick or not.

Variations of the algorithm are “used for financial forecasting and even the application of pay-per-click or advertising retargeting.” It's been used, he said, in the application of discounting or other loyalty schemes.

In the FinTech context, it’s the beginning of a model that could help Booking address the working capital constraints of travel operators — a potentially huge breakthrough for those whose credit options may be limited, particularly during these uncertain COVID times.

Get the study: The Smart Receivables Playbook

Creating Two-Sided Simplicity for Travel Payments

With pandemic-related problems still casting a shadow on travel, cash flow and cash management are now top priorities for online travel agents and the suppliers on their platforms.

Given his background in banking, Marovitz said he began thinking about volatile pandemic money flows, the time duration of money, execution risk, and other risks not found elsewhere in eCommerce.

“What people [in the travel sector] don't talk about has to do with cash management, because a nonrefundable booking is paid immediately, and a refundable booking, or a flexible booking, is paid upon check-in.”

Fixing that will be much of the focus for Booking.com’s in-house FinTech.

The mission of Marovitz’s unit today targets “completely unresolved, unanalyzed sources of pain for both sides of the marketplace. The FinTech unit has two objectives. Objective number one, which is the overwhelming objective, is to make the traditional flywheels of Booking.com spin faster.”

Booking.com has the user base and scale to attract more suppliers, giving it more inventory for bookers to choose from. But there were a number of financial flywheel catalysts that he said Booking had mostly ignored.

“If we are able to let bookers pay in the currency of their choice, if they're able to spread payments over time, if partners are able to get paid, depending on jurisdictions … in the currency of their choice … those are all mechanisms which are really powerful and positive.”

Keeping payments in-house is a strategic part of delivering that vision.

“If you look at the themes that are happening in the FinTech world, one of the things that kind of springs to mind is Adyen’s decision to become a bank,” he said, referring to the Dutch payment processor’s decision to apply for a European banking license a few years back. “That decision is less about being able to be an accredited institution and [lending], and more about being able to actually own the technology that owns the accounts so that settlement is assured.”

Owning the account, from a payment perspective, creates monetization options downstream that those dependent on third parties PSPs don’t have. And although Booking.com doesn’t want to be a bank, it functions as a digital wallet now, and those capabilities may see wider applications before too long.  Today the wallet is a way to manage discounting and credits. As for tomorrow, well, Marovitz left the door open.

“I think it's very rational to imagine that that's something that can go deeper into loyalty and deeper into friction reduction for sure.”

See also: As Travelers Plan Ahead for Post-Pandemic Passage, Suppliers Want to Ground Payment Costs

Today, Marovitz said that reducing the cost of payments — to Booking, to the traveler, to their partners — is where he and his team are focused. The more that they can use its platform's scale to take cost out of the system, the more and the faster their collective payments ecosystem will benefit.

With nearly a third of Booking.com's total gross bookings in Q3 being processed through its payments platform (up from about 22% over all of 2020), the platform is already a connected economy use case that will draw more attention — and onboard more users — in 2022.

But with a FinTech focus and a team of 400 and growing, could Booking be to payments what Sabre is to content management and distribution?

“This is early, early days. We're in a modeling and concept phase,” Marovitz said.

Watch this space.

Read also

UK battered by 100mph winds as Storm Arwen leaves at least one dead

'Ghostbusters: Afterlife' Director Jason Reitman Reveals How He Got [SPOILER] To Play Gozer

Why On Earth Are Orioles Reportedly Willing To ‘Listen’ On Cedric Mullins?

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Home Insurance Market Data Survey Report 2020 - 2028

Today24.pro — latest news 24/7. You can add your news instantly now — here

News Every Day

Stacey Solomon reveals hair transformation on date night after accidentally dying her eyebrows RED

Sports today

Новости тенниса
Анастасия Павлюченкова

Павлюченкова: у России огромные шансы на победу в Кубке Дэвиса

Спорт в России и мире

Широков назвал рабочим вариантом стыковой матч сборной России с Польшей


All sports news today


Sports in Russia today

Широков назвал рабочим вариантом стыковой матч сборной России с Польшей

Новости России

Game News

Epic buys Fuser studio Harmonix to bring music to Fortnite


«Эхо Москвы» оштрафовали за упоминание «иноагентов» без маркировки

Губернаторы России

Кубок Федерации региональный этап по Алтайскому краю 2021

Audi e-tron Sportback – второй полностью электрический SUV*

«Минус 90 процентов»: что можно и нельзя покупать в период распродаж

Конструкции пяти станций Троицкой линии метро готовы более чем на 50%

Диетолог Стародубова заявила о пользе оливок для здоровья кишечника

Клуб Gipsy приостановил продажу билетов на концерт Моргенштерна

Бутман рассказал о любви Путина к джазу

Как отметят юбилей Сергея Рахманинова

Евгений Кафельников: Зачем опять спрашивать про уход Витории из «Спартака»? Тедеско — нулевой тренер

"Думаю, что Шарапова меня простила". Откровенное интервью Анастасии Павлюченковой

Ришар Гаске: Не думаю, что "Кубок Дэвиса" экономически выгоден

Медведев пятый в туре ATP по числу эйсов в 2021 году

Газпром. Закупки. 24 ноября 2021 г. Капитальный ремонт и др. закупки

Игорь Маковский: «День филиала» стал эффективной площадкой для диалога руководителей

Кубок Федерации региональный этап по Санкт-Петербургу 2021

Тихановская подсказала ЕС способ, как быстро справиться с «режимом» Лукашенко

Колёсное превосходство: чем уникальна российская бронетехника на платформе «Бумеранг»

Настоящая зима придет в Москву и Подмосковье 1 декабря

Разногласия Армении и Азербайджана решаются в Сочи и Брюсселе

Роскосмос спроектирует космические корабли для новой орбитальной станции

Путин в России и мире

Персональные новости


Рэперу дадут меньше места // Концерт Моргенштерна в Казани перенесли на весну

News Every Day

Stacey Solomon reveals hair transformation on date night after accidentally dying her eyebrows RED

Friends of Today24

Музыкальные новости
"Воскресенье " Олег Митяев

Персональные новости
Близкий друг Путина миллиардер Пугачев. Вся правда о Путине, его семье и деньгах. В гостях у Гордона (2021)

Навальный об уволенном за пост священнике (2021)

Slava Marlow – суперуспех и депрессия в 21 год / вДудь (2021)

Обнаглевшие дети путинской элиты (2021)

Дайте собакам мяса (новый звук) -Владимир Высоцкий

Группа "Рождество" - песня "Так хочется жить!" (Видео с концерта в Киеве группы "РОЖДЕСТВО" в 2011 году в Доме офицеров)

Adriano Celentano Любимая песня Челентано (высочайшая энергетика) talentTV