As international travel gets closer to reaching pre-pandemic levels, our recent study shows that online consumers have become more sensitive to the gap between their payment preferences and their current experience booking travel. In this article, we zoom in on cart abandonment, how the customer payment journey affects it, and what travel providers can do to reduce it.
Preferred payment methods are “a make or break” factor
It's no longer enough to just provide a service. The way customers pay for that service can significantly impact their purchasing decisions. Our study found that a staggering 74% of travelers would abandon their booking if their preferred payment method is unavailable. This percentage is even higher among frequent travelers. Offering a range of payment options, from loyalty rewards to Alternative Payment Methods (APMs) like Alipay in China or Boleto Bancário in Brazil, can reduce cart abandonment rates and ensure that travel providers don't miss the opportunity to convert.
Local currencies boost conversions
Almost half of our respondents prefer to book travel in a familiar currency. Without the option to do so, they are easily deterred and potentially forced to abandon their purchase. To address this challenge, an integrated Payment Orchestration solution can play a pivotal role, allowing travel businesses to adapt swiftly to local currencies and increasing the likelihood of a transaction’s success.
Declined cards - a shortcut to cart abandonment
Declined card transactions can be written off as technical glitches. But, for 23% of travelers eager to secure a holiday package or a flight, a failed payment can push them to either try another provider or abandon the idea altogether. According to recent industry research, US$260 billion in lost online sales can be recovered with better payment journey alone. By identifying and addressing the root causes of declined transactions, travel providers can convert not just the current customer but also foster long-term loyalty. To reduce payment failures, businesses need to have real-time visibility into their payment analytics. This can be achieved by leveraging a payment provider that offers actionable reporting per card issuer, per acquirer, per country, within a single dashboard.
Transparency and security every step of the way
In 9 out of 10 cases the first stages of a transaction, often overlooked, are the most crucial in a traveler's purchasing journey. Clearly communicated pricing and refund policies can be the difference between a completed and an abandoned booking. Equally vital is the assurance of a secure purchase. By leveraging innovative payment technology, travel businesses can offer clear and intuitive booking experience, secure payments through network tokenization, and ensure that any fraudulent attempts are proactively prevented. Strengthening these two trust pillars – transparency and security – will help travel providers build a more loyal customer base, increasing conversion rates.
Cart abandonment, when approached strategically, transforms a problem into an opportunity. Read our latest study to learn how a refined payment strategy makes sure that travelers not only start their journeys but see them through to the very end.
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