New research1 shows that the travel industry will fly high after it was discovered that more than half (59%) of UK, France, Spain, and Netherlands consumers rated their experience booking travel in the past 12 month as either good or excellent.
However, the study – conducted by the Payments-as-a-Service platform Modulr – also reveals that price is the most important factor in how people are choosing to book travel in 2022. Travel operators cannot afford to lose customers by focusing on the lowest price.
According to the State of Travel Payments 2022 study, travel operators should start by eliminating inefficiencies from their booking process. Overwhelmingly (72%), travellers think there’s no excuse for travel brands to have outdated or inefficient payment processes. 72% of respondents said that they would not book with specific brands if they had poor payment experiences or refund procedures.
25% of travellers have been forced to cancel or try to get a full refund. 36% had to reschedule, postpone, or cancel their trips. These are just a few examples of outdated processes that can cause stress and friction. What’s more, three-quarters (75%) of consumers hold travel brands, not payment providers, responsible for poor or frustrating refunds or cancellations.
Further, the report found that more than two-thirds of consumers (73%) felt frustrated and stressed when cancelling holiday/flights or trying to get a refund. Three quarters (74%) of those surveyed believe travel brands can do more to build trust and confidence in the booking process.
“There’s no excuse to have outdated processes in a post-pandemic world,”Agustin Fori, European Sales Director for Modulr.. “Travel booking behaviours have changed completely since the start of the pandemic and there’s not going to be a ‘back to normal’. Customers are looking for the best deals, and price is the main driver of most bookings. Travel operators have to be able to differentiate themselves in a market where racing to the bottom on price simply isn’t an option for most.
“Given some operators do provide quick and easy refunds and cancellations, it’s even more likely that having inefficient or frustrating payment processes will drive customers away. Clearly, if travel brands want to keep and win new custom post-pandemic, they must remove all hidden inefficiencies, including payments, from their operations.”
To avoid being forced to cancel or postpone holidays because of changing Covid-19 restrictions, more than two-thirds of travellers are now booking travel closer to their travel dates. Nearly half (48%) of Europeans would book a three-day trip to a city in Europe within a few weeks. 49% would book a 2 week holiday less than a month before travel, while 49% would do the same for a one-week vacation.
1Please visit this link to pre-register for full research.