Do you like the idea of `Pay When You Fly’ option for your trip? -
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Do you like the idea of `Pay When You Fly’ option for your trip?

Ai Editorial

This payment option lets a passenger pay a certain deposit, say 10%-15%, to make a reservation. The rest of the amount is to be paid shortly before the flight departs.

 30th June, 2021

You make a plan and then when you are about to pay, you drop off.

Travel merchants are digging deep to understand what is being preferred today when it comes to paying for a trip-related transaction.

It is imperative for travel companies to combat uncertainty through innovative or valued payment options.

Evaluating travellers’ current way of thinking, Amadeus, in its new survey, found that 81% of respondents indicated that heightened “risk of cancellation is a barrier to booking travel” this year.


Airlines in Europe are taking initiatives to overcome such uncertainty. For instance, a major European carrier has come up with a `Pay When You Fly’ (PWYF) offering, letting one go ahead with a flight reservation (which also includes a hotel or car hire) by paying a small deposit (around 15%) and then settling the balance a few weeks before travel.

Referring to the option of PWYF, Nicolas Ortiz, Amadeus Payments said it is expected to instil confidence and may also result in higher value bookings.

If on one hand, one does not enter a credit agreement, on the other they give up their deposit in the event they choose to cancel. So one of the key aspects of PWYF is that this deposit at time of booking is non-refundable in case the traveller decides to cancel. For the traveller this can be thought of as a hedge against cancelation risk. 

Some highlights from the report: 

  • According to the Amadeus study, PWYF is the most appealing payment option (39%) compared to traditional pay at booking (36%) and ‘Buy Now Pay Later’ (BNPL) schemes that require the traveller to enter a credit agreement for the entire balance (24%).
  • PWYF could boost industry revenues with travellers willing to spend 36% more per trip on average, and 49% of travellers more likely to add additional services like meals and bags, if PWYF is offered by the airline.
  • As per the interaction with travellers, if airlines offered a PWYF option, 62% would be prepared to book travel in summer 2021. The benefits that most appealed were ‘no need to go through the refund process’ (43%) and ‘The money stays in my bank until I travel’ (38%).
  • On average, if PWYF was available, traveler said they’d be prepared to book six months ahead of departure.
  • On how much travellers would be willing to risk as a deposit, the mean average was 8.7% of the full booking cost. However, 31% were willing to pay a deposit representing more than 10% of the total booking cost.


By Ritesh Gupta

Ai Team

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