News from the Wire
Report: 6 ways travel businesses can stop summer chargeback losses
Wednesday, June 11, 2025 — 16:11:59 (UTC)
LONDON, United Kingdom — As millions of travellers prepare to take flight this summer, Chargebacks911, a global leader in dispute resolution and chargeback prevention, is issuing a critical warning to travel and hospitality providers: with peak travel demand comes peak travel risk.
2024’s peak travel season shattered records. Approximately 1.4 billion international tourist arrivals were recorded in 2024, marking an 11% increase compared to 2023 and a 99% recovery of pre‑pandemic levels seen in 2019, according to the World Tourism Organization.
With the summer season kicking off and many travellers looking forward to vacations, it is a period consistently linked to a spike in chargeback activity, threatening margins and operational efficiency across the travel industry. As the International Air Transport Association (IATA) forecasts an 8% increase in travel demand for 2025, companies who are ill-prepared could see their peak-travel margins impacted by disputes.
“Summer brings immense revenue potential for travel businesses — but it also brings strain, volatility, and a sharp rise in payment disputes,” said Monica Eaton, Founder and CEO of Chargebacks911. “We see an annual pattern where consumer expectations meet stretched resources, and that’s when disputes surge — especially with today’s increasingly empowered and chargeback-savvy consumer.”
The size of the issue is clear: 46% of travel and hospitality chargebacks are fraudulent – higher than retail, subscription services and digital goods. $120 is the average chargeback value in the travel and hospitality sector — the highest of any industry — while the projected total of global chargebacks is expected to reach $324 million annually by 2028. These numbers are according to research by Mastercard and these spikes are driven by both legitimate disputes and a troubling rise in first-party fraud, where consumers file chargebacks under false pretences — often due to dissatisfaction, delays, or simple miscommunication.
“Overbookings, cancellations, no-shows, and long wait times are all friction points that open the door for chargebacks — whether justified or not,” Eaton added. “The increased use of third-party booking platforms further clouds accountability, often leaving travel merchants footing the bill.”
Among the most common causes of chargebacks in the travel industry are service delivery issues, such as flight delays, hotel overbookings, or unfulfilled itinerary components. These are often compounded by friendly fraud, where consumers bypass official refund processes and file chargebacks with their issuing banks instead. Communication breakdowns are also frequent—particularly when third-party booking platforms or cross-border transactions are involved—leading to confusion over who is responsible for resolving issues.
Additionally, unclear cancellation or refund policies can result in misunderstandings and disputes. During peak seasons, such as summer time for travel, strained infrastructure and understaffed customer service teams further exacerbate the problem, leaving travellers frustrated and more likely to dispute charges.
To reduce chargeback risk, Eaton advises travel businesses to adopt these six proactive mitigation strategies that address both operational challenges and customer expectations:
Clear and transparent policies at the point of purchase Clearly outline cancellation terms, refund eligibility, and service expectations to prevent confusion and reduce disputes stemming from unmet assumptions.
Responsive customer service channels Ensure support teams are accessible and equipped to resolve issues quickly, especially during peak travel periods when delays and disruptions are more likely.
Pre-arrival confirmations and reminders Proactively communicate itinerary details, policy reminders, and check-in instructions to manage expectations and reduce the likelihood of service-related complaints.
Chargeback alert systems Use early-warning tools to receive advance notice of pending disputes, allowing merchants to intervene and resolve issues before they escalate into chargebacks.
Advanced fraud detection tools Leverage machine learning and behavioral analytics to identify high-risk transactions and patterns of first-party fraud, reducing exposure to abusive claims.
Post-transaction follow-ups Engage customers after their travel experience to address any dissatisfaction directly, increasing the chances of resolution without bank involvement. “The peak travel season is an opportunity, not a guarantee,” said Eaton. “Merchants who plan for dispute risk as carefully as they plan for demand will be the ones who thrive.”
For more information on Chargebacks911, visit www.chargebacks911.com.
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About Chargebacks911 Chargebacks911® is the global leader in chargeback prevention and remediation technology. As a platform provider to merchants and financial institutions, Chargebacks911 is the first global company fully dedicated to providing an end-to-end platform specifically designed to counter post-transactional fraud and chargeback misuse. Today, Chargebacks911 safeguards more than 2.4 billion transactions per year on behalf of clients in 87 countries around the world, supporting over 2.5 million merchants. For details on Chargebacks911’s comprehensive dispute management solutions, visit chargebacks911.com.
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Source: Company press release. 
Categories: Reports and research
