Global travel faces a chargeback crisis, Chargebacks911 urges immediate action
As the global travel industry hits peak summer season, Chargebacks911, a global leader in dispute resolution and chargeback prevention, is urging travel providers to prepare for an alarming rise in payment disputes, fuelled by a combination of high demand and escalating service disruptions.
The 2025 travel landscape has already been marred by a major power outage at London’s Heathrow Airport, transportation strikes across Spain, and heightened geopolitical tension, including US airstrikes in Iran that have disrupted air routes and heightened traveller uncertainty across parts of the Middle East. These events, paired with surging international tourism, are creating a volatile environment where disputes can inundate businesses during their most profitable periods.
“Summer brings immense revenue potential for the travel industry but it also brings strain, volatility, and a sharp rise in payment disputes when unforeseen events disrupt services,” said Monica Eaton, founder and CEO of Chargebacks911. “We see an annual pattern where consumer expectations collide with overstretched systems, and this year, that’s being amplified by real-world disruptions that business can no longer afford to ignore.”
According to the World Tourism Organisation, 1.4 billion international tourist arrivals were recorded in 2024, nearly matching pre-pandemic levels. In 2025, the International Air Transport Association (IATA) is projecting an 8% increase in travel demand. But with growth comes growing pains and for many businesses, chargebacks have become a hidden threat to peak-season profitability.
Mastercard reports that 46% of chargebacks in travel and hospitality are fraudulent – the highest of any industry. The average travel-related chargeback is valued at $120, and global chargeback volume is forecasted to impact 324 million transactions annually by 2028.
From overbookings and flight cancellations to customer confusion over third-party bookings, travel businesses face a wide range of friction points. Recent events, such as U.S. military action in the Middle East, only adds to the uncertainty, prompting cancellations, rerouting, and a surge in support inquiries.
“When chaos hits – whether it’s from natural disasters, global conflict or shortcomings in customer service – disputes are often the downstream consequence,” said Eaton. “For travel businesses, when it comes to refunds and disputes, being proactive rather than reactive is paramount in mitigating financial damage. .”
To help businesses minimise the risk of chargebacks, Chargebacks911 recommends the following service providers use targeted, proactive measures, including:
Airlines
- Enhanced staff training to manage delays, rerouting, and service complaints
- Real-time alerts and support tools during geopolitical or weather-related events
- Chargeback alert systems to identify and resolve disputes before they escalate
Hotels
- Clear cancellation and refund terms communicated upfront and at check-in
- Pre-arrival reminders to reduce no-shows and miscommunications
- Responsive on-site resolution protocols to address guest complaints in real time
Online Travel Agencies (OTA)
- Integrated communication between service providers to resolve issues quickly
- Behavioural analytics to detect first-party fraud and high-risk booking patterns
- Customer self-service tools to address dissatisfaction before it leads to a chargeback
“Too many providers are caught off guard,” said Eaton. “When systems are stressed, customers are less patient, and the risk of chargebacks spikes. Those in the travel season who fail to prepare could see their most profitable season turn into their most costly.”