Why Tour Operators Are Rethinking Their Payment Stacks in 2025



Why Tour Operators Are Rethinking Their Payment Stacks in 2025

The tour operator software market is entering a period of rapid transformation. According to Astute Analytica, the global market was valued at USD 756.5 million in 2025 and is projected to reach USD 2.2 billion by 2035, growing at a compound annual growth rate of 12.8%. This expansion is being driven less by traditional booking functionality and more by the vertical integration of financial services directly into operator platforms.

The Consolidation Wave Reshaping Competition

2025 has already seen a dramatic restructuring of the competitive landscape. The merger of Rezdy, Checkfront, and Regiondo into Expedition Software Holding created a conglomerate serving approximately 17,000 operators and processing over USD 5 billion in annual gross booking value. The combined entity has carved out distinct regional strongholds: Rezdy in Oceania, Regiondo in Europe, and Checkfront in North America.

Standing opposite this consolidation is FareHarbor, a Booking Holdings subsidiary that continues to compete as a standalone platform. With 918 employees and more than 20,000 active clients, FareHarbor released 184 product updates in 2024, averaging one deployment every two days. A key 2025 rollout includes Link by Stripe, designed to simplify checkout flows across seven major markets.

Payment Infrastructure Becomes a Differentiator

The industry pivot toward embedded finance reflects a broader operational reality. Research from Airwallex and Skift indicates that 90% of travel executives are prioritizing upgrades to payment and financial operating systems. Two-thirds of survey respondents reported that complex payment systems directly hinder operational efficiency and profitability.

For tour operators specifically, the pain points are distinct from other travel verticals:

  • Cross-border supplier payouts: Operators work with local guides, transportation providers, and activity vendors across multiple currencies
  • Deposit and installment workflows: Complex booking timelines require flexible payment collection schedules
  • Chargeback exposure: High-value, experience-based purchases carry elevated fraud risk
  • Reconciliation overhead: Manual matching of bookings to payouts consumes back-office resources

Virtual Cards and B2B Wallets Gain Traction

To address these friction points, major payment networks and fintechs are building specialized tooling. Outpayce (the Amadeus payments division) offers its B2B Wallet, enabling multi-currency supplier payments through virtual cards. The platform allows travel sellers to create and manage virtual cards from a unified portal regardless of the issuing bank.

Worldpay has partnered with Mastercard to introduce a virtual card program targeting travel agents and tour operators in the UK and Europe. The program includes dynamic product code capabilities, allowing operators and suppliers to negotiate mutually beneficial payment terms. Visa and Mastercard both now operate dedicated B2B travel solution divisions, signaling long-term commitment to the vertical.

Key Takeaways

  • The tour operator software market is projected to triple in value by 2035, with embedded finance driving much of that growth
  • Industry consolidation (Expedition Software Holding) and independent scale players (FareHarbor) are competing to own the operator relationship
  • Payment system complexity is now widely recognized as a direct drag on profitability, with 90% of executives planning upgrades
  • Virtual cards and B2B wallets are becoming standard tooling for cross-border supplier management

For tour operators evaluating platform partners in 2025, payment capabilities should carry equal weight to booking features. The ability to automate payouts, reconcile multi-currency transactions, and reduce manual finance overhead is becoming the primary vector for competitive differentiation.


Editor

With decades of combined experience spanning all facets of the travel and merchant processing industries, our editorial team brings unparalleled insight to Travel Merchant News. Our expertise encompasses every angle of the travel sector, from seasoned travelers who have explored the world to travel operators who have built and managed successful tourism businesses. On the merchant processing side, we've worked extensively with payment solutions tailored specifically for the travel space, understanding the unique challenges and opportunities that travel businesses face in payment processing, transaction management, and financial operations. This comprehensive knowledge allows us to deliver content that truly speaks to the needs of travel professionals navigating the complex intersection of travel services and merchant solutions.

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