Speed is of the essence: 1 in 4 holiday goers say that time at the checkout impacts purchasing decisions
Leading payment orchestration provider BR-DGE has revealed new research highlighting the changing payment needs of consumers when purchasing travel and holidays online.
As the customer experience becomes more important when buying online, the speed of the checkout experience ranks as the top factor (27%) impacting consumer purchasing decisions when using a travel website. This is followed by factors including loyalty schemes (26%), deals and offers at the point of sale (19%), and available payment options (12%). The survey of over 1,200 consumers, conducted on behalf of BR-DGE, highlights the need for frictionless payments as 1 in 4 expect to spend less than three minutes at an online checkout before abandoning their cart.
Offering ease is crucial
As consumers become more wary of spending during the cost-of-living crisis, the research shows how travel sellers can drive sales among potential travel shoppers. Two-thirds of holiday goers (64%) say that they would feel comfortable using an express checkout system when purchasing a sizeable travel product or holiday package online. Respondents noted that upgrades to checkouts, such as greater authentication methods (42%) and more access to a variety of payment options (31%), improves the checkout and payment experience.
Increasingly, consumers are looking for flexibility at the checkouts with the research showing that nearly half of consumers shopping for travel and holidays (42%) are open to using flexible payment solutions, such as financing or Buy Now Pay Later. However, only 5% of consumers said they had previously used BNPL for purchasing holidays, highlighting the opportunity for travel sellers looking to offer customers more payment options at the checkout.
Emily Whalley, Travel Vertical Sales Manager at BR-DGE said: “With the busy summer travel season fast approaching, consumers looking to buy holidays and flights are demanding more from their checkout experiences than ever before. Increasingly, speed is of the essence with shoppers looking for a quick and frictionless payment experience after often shopping for hours to find the best deal. We are also seeing that choice matters for customers as many are now looking for greater flexibility in travel purchases, such as paying via Buy Now Pay Later or using financing options.
“For travel providers, this data shows the importance of getting on the front-foot when it comes to delivering a quality payment and checkout experience.”
Impact of fragmented payments on travel sales
The research further highlights how fragmented payments systems across the travel sector, put under increasing pressure by the massive growth in digital payments, present a considerable challenge to airlines and travel agents. Worryingly, 29% of travel purchasers said they would abandon their cart if a failed transaction occurred. With 13.4% of consumer payment transactions failing across the travel sector, friction in the customer journey has the ability erode to travel providers’ profit margins.
In recent years, OTAs and airlines have experienced a number of payment challenges that impact margins and company resources. Payment failure and cart abandonment rates remain high as airlines and travel providers grapple with an ever-changing and fragmented payment landscape.
Through dynamic routing and connections to the entire payments ecosystem, BR-DGE’s platform reduces failed payments and supports the evolving payment needs of travel providers and their customers. BR-DGE has worked with partners, including Kenwood Travel and Travel Counsellors, to enhance the payment journey of customers, ensuring that they receive a frictionless end-to-end experience and greater choice through a range of alternative payment methods.
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