“Pay That Way” Report Reveals Travel Spending Not All Credit Anymore
To understand global online shopping behaviors when planning vacations, Worldpay surveyed 12,000 consumers across six countries for the 2016 “Why Do They Pay That Way?” Travel and Airlines report. Some of the report’s highlights include:
- Vacation now, pay later: Credit cards have long ruled as the preferred payment type for flight and vacation package bookings. According to the report, 72 percent of Chinese consumers and 64 percent of American consumers funded their last vacation using a credit option. However, this trend might be slowly changing, as only 50 percent of German consumers chose to fund a flight or vacation using a credit option.
- Credit-wary millennials: While credit cards were the most popular payment option overall, the youngest adult generation surveyed showed a preference for savings. Sixty percent 18-25-year-old American and Chinese consumers paid for their last vacation using savings instead of a credit option, demonstrating millennial consumers are more credit-wary than their parents and grandparents.
- Traveling on layaway: Globally, the report found that consumers want travel companies and airlines to offer alternative methods for funding flights and vacations. In fact, 75 percent of respondents wanted the choice to pay for their next vacation in installments rather than as a lump sum, similar to the layaway method used by department stores.
The 2016 “Why Do They Pay That Way?” Travel & Airline report provides further detail about the behaviors of online consumers and offers strategies for hotel and airline sites to capitalize on these findings.
To learn more, read the full report or visit worldpay.com.