E-book: the modern merchant model

Outlook: The modern merchant model

1. Digitalization in B2B e-commerce is here to stay - something that also impacts the travel trade ecosystem. Along with the digitalization trend, the pandemic and the subsequent recovery of the travel industry forced a further re-evaluation of business models and payments.
   
   
2. Direct retailing by airlines which personalizes their service offerings in direct relationships with their customers, is affecting the intermediaries at the center of this same ecosystem. They strive to maintain their indispensable role as retailers and persuade travel suppliers to rely on their expertise to extend their reach, boost demand, and increase sales.
   
   
3. The pandemic has again demonstrated the value of indirect distribution and travel retailing through the merchant model for travel intermediaries, travel suppliers and, ultimately, end customers. This includes crisis management and adaptation to changes in consumer behavior and buying preferences.
   
   
4. The merchant model is most beneficial for maintaining the balance within the ecosystem. It supports the optimal use of payment methods with greater choice for the end customer. At the same time, the travel intermediary – working closely with travel suppliers – can acquire travel services using virtual credit cards to enable optimized cash flow and smooth payment processes. This practice at the heart of the ecosystem impacts the entire travel value chain.