Whether it's due to the benefits offered by companies or the ease of purchase, credit cards are still the most used payment method by consumers when buying airline tickets, according to a study conducted by Worldpay®, a global leader in payment solutions, in "The Global Payments Report 2024".
According to the research, the reasons behind the popularity of credit cards are diverse, such as the incentives offered by issuing banks, like miles, cashback offers, and travel insurance. Furthermore, the value of chargeback protection, which comes with the cards, was highlighted during the travel chaos at the beginning of the pandemic. In addition, it's possible to pay for purchases in installments, which increases purchasing power and facilitates the acquisition of consumer goods and higher-value travel.
A favorite among consumers, credit cards protect customers against non-delivery of purchased services and are therefore ideal for purchasing airline tickets – which are subject to cancellation for various reasons. It's worth noting that people who travel for work benefit even more from itinerary data (provided in transactions made with the card), as it facilitates the preparation of expense reports and the reconciliation of travel expenses.
According to a survey, the Airline Reporting Corporation (ARC) reported that more than 90% of all airline tickets purchased in the US between January and November 2023 were purchased with credit or debit cards. “This is not a surprise, considering that this segment pioneered credit card payments. UATP (Universal Air Travel Plan), a network focused on travel and hotel payments, was launched in 1936 and is still in use today,” says Juan Pablo D'Antiochia, Senior Vice President and General Manager of Worldpay for Latin America.
New payment options
Today, offering a variety of payment methods has become a significant competitive advantage for businesses. Furthermore, diversifying the payment options allows them to reach new customer segments, especially those without access to traditional cards, or to reach consumers who prefer the convenience of digital wallets like Apple Pay or Alipay. Last year, digital wallets accounted for 50% of the value transacted globally in e-commerce, making them a relevant option in the design of checkout flows.
“Although traditional credit card payments still dominate the travel segment, offering alternative payment methods can help travel businesses expand their market reach, reduce costs, and improve the customer experience,” D'Antiochia points out.
