Two Thirds of Millennial Travellers Say Flexible Payments Are Their Deciding Factor When Choosing Airlines

New research commissioned by Affirm, the payment network that empowers consumers and merchants with flexible and transparent payment options, reveals that payment flexibility is now one of the most important factors influencing travellers when booking flights and holidays.

The survey shows that for younger travellers, the ability to spread the cost of travel matters more than price alone. More than three quarters (78%) of millennials say flexibility to spread payments is important when booking a holiday or trip, while two thirds (66%) say it would be the deciding factor between two airlines offering the same journey at the same price.

Ruth Spratt, UK Country Manager at Affirm commented: “It’s no longer enough to just offer a great price. For younger generations, real value is about peace of mind – knowing they can book with a payment experience that is convenient, flexible, and fits their lifestyle. Travellers are planning with greater purpose and intentionality, with decisions over how they pay increasingly influencing their destination choices. For the travel industry, offering flexible payment options is no longer a nice to have but a must for meeting consumers’ expectations.”

The barriers holding younger travellers back

Financial pressures are reshaping travel habits, with 43% of millennials having postponed or cancelled their travel plans due to costs in the last year. For millennials, hidden fees (62%), a lack of flexible ways to pay (61%) and large upfront payments (58%) are the biggest barriers to booking – outweighing the overall cost.

When it comes to travel-related costs, more than a third of millennials point to hidden fees (37%) and surprise add-ons (32%) as their biggest sources of financial stress. When asked about spreading the cost of a trip without incurring additional fees, the majority of millennials said it would transform how they book: 70% would book further in advance, 66% would book more trips and 67% would upgrade their travel.

The opportunity for airlines and booking sites

Millennials are prioritising holidays in their budgets, with more than half (51%) saying they spend over £2,000 annually on travel – signaling a strong demand for travel which airlines and booking sites can unlock through flexible payment options.

The research shows that less than half of consumers of every age believe airlines (40%) and booking sites (49%) are doing enough to make travel financially accessible. This suggests that travel providers have a clear opportunity to boost sales and increase customer loyalty by offering more flexible and transparent payment options that enable travellers to pay on a schedule that works best for their needs.

Ruth Spratt, UK Country Manager at Affirm added: “Travellers want the freedom to book on their own terms, without the sting of hidden costs or large upfront payments. This research highlights the clear upside for airlines and booking sites: by offering flexible, transparent payment options, providers can unlock earlier bookings, more upgrades, and repeat business – driving loyalty and conversion while building trust with travellers”.

With Affirm’s transparent and flexible payment options, merchants can give customers greater choice at checkout, enabling them to pay over time on a schedule that works for them. Unlike traditional credit cards and many BNPL providers, Affirm never charges any late or hidden fees. For travellers, this means greater confidence and less financial stress when booking. For airlines and booking sites, it translates into higher conversion rates, fewer abandoned baskets, and stronger customer loyalty.