Whether for the benefits offered by companies or the ease of making the purchase, credit cards are still the most used means of payment by consumers when purchasing an air ticket, according to a study by Worldpay DES, a global leader in payment solutions, the “The Global Payments Report 2024”.
According to the survey, the reasons behind the popularity of credit cards are diverse, such as the incentives offered by issuing banks, such as miles, refund offers and travel insurance.In addition, the value of chargeback protection, which accompanies cards, was highlighted during the chaos of travel at the beginning of the pandemic.In addition, it is possible to install the value of the purchase, which increases consumer power and facilitates the acquisition of consumer goods and travel that have a higher value.
Dear consumers, credit cards protect customers against non-delivery of purchased services and are therefore ideal for purchasing airline tickets & subject to cancellation for various reasons. It is worth noting that people traveling for work take advantage of the itinerary data (repassed in transactions made with the card), as they facilitate the preparation of expense reports and the reconciliation of travel expenses.
According to a survey, Airline Reporting Corporation (ARC) reported that more than 90% of all air tickets purchased in the US between January and November 2023 were purchased with a credit or debit card.“This is not a surprise, considering that this segment was a pioneer in credit card payments. The UATP (Universal Air Travel Plan), a network focused on travel and hotel payments, , was launched in 1936 and is in use until today”, says Juan Pablo D’Antiochia, Senior Vice President and General Manager of Worlday a America.
New payment options
Today, the offer of various payment methods by merchants has become a relevant differential against the competition. In addition, varying the portfolio of payment methods allows reaching new segments of customers, especially those who do not have access to traditional cards, or even access consumers who prefer the convenience of digital wallets such as Apple Pay or Alipay. In the last year, digital wallets represented 50% of the value transacted globally in e-commerce, which makes them a relevant option in the design of checkout flows.
While traditional credit card payments still dominate the travel segment, offering alternative payment methods can help commercial travel establishments expand their market reach, reduce costs and improve the” customer experience, said D’Antiochia.
