Published on : Thursday, January 12, 2017
Credit and debit cards have always remained the two most popular ways of payment and 2016 was no different. Surveying more than 12000 travellers, Worldpay, a leader in online payment services found that the new age travellers are more inclined in embracing the alternative payment methods during their journey or for booking tickets. And, according to the industry experts, this trend is expected to continue and grow in 2017 as well. With the increased popularity amongst the travellers for the alternate payment procedure, the travel industry is left with no choice but to develop its technological platforms for the savvy travellers.
Although many travellers opt to use their credit cards to pay for travel, it doesn’t necessarily mean it’s their first choice. In fact, 95% of people who said they prefer using credit and debit cards also said they would use their country’s most popular alternative payment method if given the choice. In Germany , China or Australia, a huge percentage of people has opted for PayPal and Alipay as their choice of mode of payment. Most of these travellers fall in the age group of 18 – 25.
Obvious enough, the younger generation can adopt the technology sooner than the older generation. The only country that appeared to go against this trend was India. 56 – 65 year olds in India led the pack with alternative payments — nearly 30% of travellers in India opt for e-banking when booking airline tickets. In India, access to credit is closely linked to one’s income, explaining why credit card usage is lower between younger and older audiences.
Installment based plans in the travel industry will see a rise in 2017. As travel costs continue to increase, the ability to pay for vacation packages all at once becomes more difficult for travellers across the globe. Instalment based plans are thought to alleviate that burden. About 75% of respondents of Worldpay’s survey found that they will be opting for the vacation packages if it is available on instalment.