Travel Companies Risk Losing One-third of Customers Due to Lack of Payment Choices
Global survey from
“The global travel industry is a huge growth market worth
Other key findings and trends:
Travel and Booking behavior
- On average, nearly two in five (37%) of respondents globally travel 1-2 times a year while more than one in five (22%) do so 3-5 times a year.
65 percent of travellers globally spend between
USD 320– 3,800 on leisure travel annually, with a third (33%) spending more than USD 1,300per year.
- Globally, 74 percent prefer to book their travel via a digital device (computer, laptop or mobile phone) and on average, only 10 percent prefer to book in person.
- Travel comparison websites have significant market share, with 30 percent of travellers preferring to book via this channel.
- Globally, 30 percent of travelers want a range of payment options available and 36 percent feel frustrated if they can’t pay via their preferred method.
Credit and debit cards are still broadly the most popular means to pay
for trips globally (36 and 29 percent respectively), with
PayPaltaking a strong market share (17 percent globally) in most countries and across age groups.
Local payment methods feature strongly in
Germanyand China; in Germany33 percent of consumers prefer to pay via direct bank transfer, in China78 percent use Alipay as their preferred payment method.
Transparency and data security are vital for customer loyalty:
- 66 percent of respondents find a lack of transparent pricing annoying.
- 32 percent of respondents are concerned about what travel companies do with their personal data and 34 percent say operators should be more transparent about what they do with customers’ personal data.
Experience of Fraud
- 33 percent of travellers globally have experienced fraud either while booking a holiday or while travelling.
The number of
UKtravellers having experienced fraud is the lowest (18%), with 30 percent of Germans, 36 percent of Americans, 35 percent of French and an alarming 61 percent of Chinese travelers stating they had been victims of fraud.
“Our findings highlight that globally, there are a number of key service trends travellers value most when it comes to booking trips online. Local and alternative payment preferences as well as fraud and security impact not only the purchase but also the travel experience. These factors influence travellers’ choice of operators, and whether they return to those providers in the future,” Moedlhammer continued. “With downward cost pressures and the strain of competitive threats weighing on travel operators, the need to understand customer buying drivers and preferences has never been more important.”
ACI recommends the following three top tips for online travel operators:
- Understand the local and regional payment preferences for target traveller markets - worldwide there are over 300 different online payment methods - don’t assume a “one size fits” all approach will work
- Research current and emerging alternative payment methods which can improve conversion options on high priced vacation and travel ticket items - lost opportunity cost can hamper revenue and future business
- Develop an integrated payments and fraud management approach for managing transactions – travellers want to feel confident and secure in the operators with whom they choose to do business
Methodology: All figures, unless otherwise
stated, are from
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