Digital payments in travel and hospitality: assessing bKash's impact on business stability and customer trust in Bangladesh tourism industry - a bKash case study

Abstract

My internship report gives an in-depth account of the momentous implications that bKash - one of the most formidable Mobile Financial Service (MFS) providers has had on the stability of business and customer trust within the Bangladesh travel and hospitality industry that is ever-changing. The analysis shows that bKash has become an indispensable tool for various industry stakeholders. Online Travel Agencies (OTA) such as the Shohoz and GoZayaan use the widespread users of the bKash to facilitate the ease of bookings and boost revenue stability. Hotels, even leading ones located in tourism centers, like Seagull, Royal Tulip and many more hotels in Cox Bazar, and throughout the country use bKash to enable direct bookings, decrease the risk of no-showing, and enhance the operations. On the same note, larger organizations involving major transport systems such as Shyamoli Paribahan and Bangladesh Railway is one organization which has reaped the most benefits of bKash integration when it comes to effective selling of their tickets, real-time data and less handling of cash. In addition to functional advantages, bKash is important in facilitating customer confidence. Its soaring security provisions such as PIN authentication and OTP verification and its dispensable transaction histories lend credence to its users. The general awareness and the natural usability of the bKash app also adds to a hassle-free trusted introduction on digital payments, in the country to the travelers within the country. Even though these are substantial contributions, the research notes a few challenges and gaps. The major constraint is that currently the interoperability between MFS providers poses a barrier, thereby leading to friction among business and consumers. Moreover, bKash does not have sophisticated functions like full meal subscription travel plans, member-based well-structured loyalty programs, buy-in travel insurance coverage, and real-time process foreign exchange transactions in its Ticket & Travel service yet, which is rapidly gaining popularity in many international online travel agencies. Out of these findings, the paper gives action-oriented recommendations. In the case of bKash these involve an extension of the interoperability with Binimoy, establishment of tiered rewards schemes on travel, incorporation of travel insurance as part of the in-app functionality and delve into FX offerings. In the context of OTAs, hotels, and transport companies, recommendations are based on implications of the further integration of bKash, advancing digital payments, and using the real-time data. Policy implication is that full MFS interoperability should be fast tracked and clear regulation on digital travel products should be put in place. Finally, bKash has been able to revolutionize the travel and hospitality sector of Bangladesh making it digital. Tackling the identified gaps effectively and maintaining a steady stream of novelty in its services, the key role of bKash can be further strengthened to make it continue its growth and create an even more pleasant overall digital experience of the business people and consumers in its active industry.