27th May 2024
Consumers look for utility or benefits they receive by opting to pay via a particular method for their buys. It sounds even more enticing if travel shoppers have two or more relevant payment options to consider at the checkout.
For instance, accruing a loyalty currency by using a travel cobrand card. Or opting to pay via a global debit card, air miles etc.
In order to evaluate what clicks with travel shoppers, and why wouldn’t they possibly abandon their cart, regular testing is useful. As pointed out by Norwegian Airlines during the #ATPS2024 in London last week, the payment specialists at the airline focus on having full ownership of the checkout experience.
In addition to this, there are other local nuances that travel merchants, as cross-border merchants, need to understand, and accordingly dynamically display local checkout experiences.
“We recognize that payment methods are deeply intertwined with local culture, and it is essential to provide consumers with options that cater to their specific needs and preferences. This involves offering localized language support, currency options, and cancellation policies tailored to each market. Equally important is accommodating preferred payment methods unique to different regions,” shared Gary Burrows, CEO, PlanPay, in an interview with Ai Events. Sharing examples, Burrows referred to offering instalment payments in Latin America, enabling transactions through WhatsApp Pay in the Asia-Pacific region, or supporting M-Pesa in Africa.
Payment flow
It is worth evaluating how much intuitiveness is being seen while working out a payment flow. For instance, letting a traveller calculate their instalment.
“The ingenuity lies in recognizing that the majority of consumers will always experience what we call “sticker shock” or “price anxiety” when they first see the full cost of a ticket purchase. This initial reaction can lead to nearly a 75% cart abandonment rate in the travel industry. By presenting the cost in clear, manageable payment chunks, customers lose that fear and can better understand how they can afford the purchase. This approach not only reduces sticker shock but also improves the overall purchasing experience, potentially increasing conversion rates and customer satisfaction,” said Burrows.
In addition to offering traditional card options, airlines must consider newer, more flexible payment methods. Burrows added that consumers are looking for alternatives that offer flexibility without the burden of credit-based solution. “Younger consumers often prioritize convenience and flexibility in their payment methods over the traditional benefits of loyalty programs. This demographic is less likely to be swayed by points and more by the ease and flexibility of payment options available to them,” pointed out Burrows
By Ritesh Gupta, Ai Events
