As the travel industry hits peak summer stride in parts of the world comes a warning that a perfect storm is brewing beneath the surface.
Chargebacks911, the global leader in dispute mitigation, has advised travel businesses including OTA’s, airlines and hotels, to get ahead of chargebacks now or risk turning profits into financial fallout.
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 U.S. 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.”
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.”
“Too many providers are caught off guard. 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.”
