Pay when you travel options are helping entice consumers back to travel, according to a report.
An Amadeus study reveals the Pay When You Fly (PWYF) option, implemented by a number of European airlines, is the top choice for 39% of consumers compared with 36% who opt to pay at the time of booking and 24% who go for buy-now-pay-later schemes.
The report highlights the need to build up confidence in travel and reveals 81% of travelers say the risk of cancellations because of the pandemic is a barrier to booking travel while 46% refund uncertainty is a barrier.
In addition, 62% say they would opt for a PWYF scheme to avoid painful refund processes, according to the research.
Lufthansa widened PWYF for flights within Europe for corporate travelers in March, an extension of a scheme offered to a group of corporate customers for some years.
British Airways Holidays also offers a book now pay later scheme while easyJet Holidays enables travelers to pay for trips in instalments as part of its Protection Promise measures.
Bart Tompkins, managing director, payments, Amadeus, says: “We’re entering a critical phase for travel’s recovery, and our industry needs to build confidence at every opportunity. We believe PWYF will drive traveler confidence, encouraging travel planning and booking even in an uncertain environment with changing government restrictions.
"The new approach may also result in higher value bookings because travelers only need to make the balance of the payment when it’s clear the flight will depart as planned.”
The Amadeus study reveals that travelers were prepared to spend 36% more on a trip when using a PWYF scheme as well as add ancillaries such as meals and bags.
The study was conducted by Opinium in May, using fedback from 5,000 travelers across France, Germany, Malaysia, the U.K. and the U.S.