The travel industry has seen plenty of growth and changes over the past few years. The rise of the sharing economy has allowed more people to enter the industry, whether they’re hosting guests in their spare rooms, leading tours, or letting people rent their boats or other vehicles. The sharing economy has also created a more budget-friendly travel industry, allowing more people to participate.
Whether they are part of the sharing economy or not, today’s travel-focused companies can benefit from branded debit cards. Branded debit cards help build customer loyalty and streamline the process of paying hosts and owners who use a travel company’s services.
What Are Branded Debit Cards?
A branded debit card is a payment card customers can reload and use pretty much anywhere they would use a debit card. They can use the card to make purchases at stores, order products online, or get cash from ATMs.
If you decide to introduce branded debit cards, the card will have your company’s name and logo. You can also use the cards to issue payments to customers or offer customers special incentives when they use the card to pay for orders or purchases with your company.
A critical feature of branded debit cards is a white label design. You design the card using your company’s logo and colors. Every time customers reach for and use their cards, they’ll see your brand name and logo.
Branded debit cards don’t connect to a traditional savings or checking account the way bank-issued cards do. The cards can be an ideal option for people without a bank account or those who want to keep the funds they’ve budgeted for travel separate from the rest of their money.
How Can Branded Debit Cards Help the Travel Industry?
There are multiple benefits to introducing a branded debit card to your customers. Hydrogen’s no-code platform allows you to create and launch a debit card program in a matter of days rather than weeks or months. Once your card program is up and running, you can use it to offer the following, all of which help increase customer loyalty.
Simplify the Payment Process
One of the hallmarks of the sharing-based travel industry is regular people leasing property or hosting guests in their homes. While some services operate on an exchange basis, such as by letting homeowners swap houses with others or having pet or housesitters take care of someone’s property while the homeowner travels, others involve the exchange of money.
Lodging marketplaces let homeowners list rooms or entire apartments for a fee. The traveler reserves the room through the marketplace, paying it directly. The marketplace then issues a payment to the homeowner.
A service like Boatsetter allows boat owners to offset the cost of owning a boat by leasing it to others. The boat-renters pay Boatsetter, which then pays the boat owner.
Travel marketplaces often pay owners using direct deposit or online payment systems. Another option is to pay hosts or owners using branded debit cards. Once your company’s debit card program is up and running, and hosts or owners sign up for it, they can get paid for their services or equipment in hours, not days.
Offer Perks to Customers
You can create a loyalty or rewards program to make your company’s debit card even more attractive. Since you’ll most likely issue the cards to people interested in travel, it makes sense to offer travel-centered rewards. When customers use the card to purchase plane or train tickets, they could get a small discount. Another option is creating a points program. Whenever a customer makes a purchase with their debit card, they earn 1% or 2% cashback or rewards points.
It makes sense to create a rewards program tailored to your customers that keeps them coming back for more. A service like Boatsetter might develop a loyalty program that lets boat renters earn points toward future rentals. Boat owners might get a discount on their boat insurance.
Create a New Revenue Stream
Introducing branded debit cards gives your company an opportunity to add a new revenue stream. Hydrogen’s no-code cards give you up to 1% of the interchange fee.
Card processors charge an interchange fee every time a user swipes their debit card. A portion of the fee goes to the card issuer, which, when you create your own branded card, happens to be your company.
The percentage of the fee you get depends on monthly transaction volume. The higher your monthly transaction volume, the higher the percentage of revenue you collect.
How to Create and Use Branded Debit Cards
Travel companies can use branded debit cards to let customers pay for reservations or purchases through their company or elsewhere. If your travel company is part of the sharing economy and has hosts or owners to pay, you can also issue branded debit cards to them as a payment option.
Creating your own branded debit card program with Hydrogen is simple:
- Choose a design: Hydrogen’s platform makes designing your custom white-labeled cards a snap. You simply need to choose a background color for your cards and upload a .svg file of your company’s logo. Our no-code portal uses drag-and-drop, so you can see your card in real-time and make changes with just a few mouse clicks.
- Choose programs to offer: Decide how people can use your company’s debit cards. Will you use the cards to make payments to owners or hosts? If so, how can people sign up for the card? Consider the type of rewards programs you’ll offer users, such as discounts or cashback. You might consider a loyalty program that lets people earn points to redeem through your company.
- Set up admin controls: A branded debit card program gives you a sneak peek into how customers use the card. Based on the data you gather through admin controls, you can adjust the loyalty program or push special discounts or perks to card users.
Issue Branded Debit Cards With Hydrogen
The travel industry is expected to rebound in 2022, returning to pre-pandemic levels. Introducing custom branded debit cards is one way your company can stand out in a competitive industry and continue winning over customers and users.
Hydrogen streamlines the process of creating a card program, so you can get cards into customers’ hands as soon as possible.
Get ready to welcome travelers back by contacting us today.