21st May 2024
An exciting week awaits us. #ATPS2024 kicks off on Wednesday, and a series of fascinating payment and fraud-related sessions are lined up.
One topic that impacts the conversion rate is related to transparent pricing. Transparency builds trust. Being clear about all aspects of a transaction is always high on the agenda of airlines.
In a new development, Frontier Airlines has announced clear, upfront pricing as part of its plans to meet expectations of customers. For its four bundle options, the airline has chosen to clearly present what each bundle has to offer at the start of the booking process. This is being backed by the customer support one needs, stated the airline. There is clarity over change fees, bags, seat assignments, and more. The airline has highlighted that it is supporting travel flexibility by eliminating change and cancellation fees for travellers who opt for any bundle other than the basic one. Frontier has also introduced the “For Less” guarantee.
Pricing and payment
Travel shoppers, like in any product category, like to avoid surprises at the last minute. Unexpected costs are the leading cause of cart abandonment. This is because frustration creeps in when a consumer encounters last-minute fee as it wasn’t clearly disclosed upfront. It is apt to provide a summary of an order before a payment is made. This is in addition to displaying relevant payment options and robust security features at the time of checkout.
Pricing and payment are one aspect of a streamlined shopping journey, other areas being making it easy for a shopper to understand via a sublime design (for instance, a minimalist interface), making them do less (say via auto-fill functionality, one-click checkout etc.), important to show that data and money are safe, clear confirmation for trusted checkouts etc.
It is worth evaluating how transparent pricing leads to improvement in the conversion rate. How the benchmark for the conversion rate in the travel sector shaping up today, and what is helping in the improving the same? Is a conversion rate of 2.5-3% for an airline website a respectable one today?
A session on payment optimisation and innovation is scheduled to take place at this week #ATPS2024 in London (22-23 May), featuring Dagfinn Misund, Director Payment & Fraud, Norwegian, and Igor Molchanov, VP Relationships Global Airline Acquiring, Elavon.
https://www.aiconnects.us/atps-2024/
By Ritesh Gupta, Ai Events
