The travel industry is bracing for another round of Covid-induced chargebacks as business travelers expect to cancel trips in the midst of surging cases of the Delta variant of the virus that causes Covid-19, according to a new report.
More than half (52 percent) of those polled in a new survey commissioned by the American Hotel & Lodging Association (AHLA) expect to cancel existing travel plans without rescheduling. Overall, 67 percent of U.S. business travelers expect to take fewer trips in the coming months. The survey looked at hotel revenue specifically and respondents don’t expect a return to pre-pandemic levels until 2024.
Airlines, hotels, cruise lines and other travel-related businesses were among the segments hardest hit by chargebacks in 2020 when most travel plans were abruptly canceled due to global restrictions. Visa made adjustments to its chargeback rules that will be going into effect in October. Some of these changes—notably a wait time of 30 days before issuers can initiate a chargeback against travel and tourism companies—were specifically designed for travel-related merchants in response to the challenges they faced in the pandemic’s early days.