How we travel will have a sizeable effect on the ever-evolving world of payments this year. More of us are seeking ways to discover the world, in an affordable manner, that suits us. Sometimes, it’s neither practical nor convenient to pay for entire trips in one go and filling out card information can be consuming. Thus, there’s a growing demand for diverse and convenient ways to pay for adventures. So, which factors will affect payments within travel this year? Let’s delve deeper.
Mobile payments
Due to their ability to provide more flexibility to pay on-the-go and with more frequency, mobile payments will become more popular within travel. In 2018, the South China Morning Post reported that a study found over 90% of surveyed Chinese people said they would use mobile payments abroad if the opportunity arose. In Germany, where Apple Pay was introduced at the end of the year just gone, more tourists will be able to pay with their smartphones.
Along with paying while abroad, mobile payments are also beneficial because they allow customers to book trips online in a single tap. As more people desire to do this over the course of this year, offering solutions that allow customers to book trips and pay for items through this channel would be a wise idea. Developing speedy Accelerated Mobile Pages (AMPs) will also be vital, as poor user experience in this respect will be detrimental to sales.
Holiday types
This could well be the year of the travel expert. 69% of individuals asked, in ABTA’s recently-published Travel Trends Report, stated a desire to continue using companies that seek to personalise their experiences. In addition to this, 59% of millennials said that they would pay extra if it meant they could enjoy a more tailored holiday. What does this mean for merchants? Those who are the most transparent with their customers will stay ahead of the competition. Circling back to payments, travel experts should consider the customer’s budget as well as their holiday desires and aim to hit a middle ground.
Emerging destinations
Three destinations that the report mentioned to be growing in popularity are Poland, Japan and South Africa. For brick-and-mortar merchants serving in these markets, it’s good advice to seek popular local payment methods.
One such method, which could be a shrewd addition, is the eWallet. In each of Poland and South Africa, PPRO reports that this payment type makes up 14% of the total split for both. If the use of eWallets in these markets becomes more popular, it’s possible that we could see travel operators also offering the ability to pay from an eWallet account.
To summarise…
Over the next 12 months, more travellers will seek to tailor their trips to match their desires. This will not just include where and how they go on holiday, but also how they make payments. The convenience of mobile payments will be of great appeal to holidaymakers, while operators that cater each individual’s holiday needs (including total budget) will likely be more successful. Alongside mobile payments, it’s likely that other methods are also going to become more popular as the demand for convenience and efficiency grows.
At emerchantpay, we offer a range of payment solutions for operators across the travel industry. To find out more about how we can enhance your booking flow, please contact us.