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BizReport : Ecommerce archives : September 09, 2016

Study: Vacationers want to buy now, pay later

Travel brands would be smart to begin offering payment options for vacation planners. That is one takeaway from a new Worldpay study which found that most travelers (75%, globally) want payment options when it comes to paying for an upcoming trip.

by Kristina Knight

FOMO - the Fear of Missing Out - is driving more consumers to take trips they aren't financially ready for, and running up credit card debt in the process. American and Chinese consumers are leading this particular pack, according to Worldpay data which found that 72% of Chinese vacationers paid for their last trip using credit; 64% of Americans used credit for their last vacation.

"The real learning for airlines and travel companies who want to tap into the passion for international travel means recognizing, while everyone wants to go on vacation, the way they pay for it varies remarkably from country to country. The businesses which are best prepared to benefit from consumer demand for flights, hotels, vacations and other travel experiences are those with the right systems in place to support both locally preferred and internationally-recognized payment methods," said Casey Bullock, General Manager, North America at Worldpay. "Vacationers are looking to the travel industry to innovate and provide alternative ways of funding their next holiday that aren't tied to traditional payment methods. Whether it's the option to pay for a beach break using PayPal, or an installment plan that spreads the cost of a round-the-world air ticket, travelers all over the world are hungry for more ways to pay."

Other interesting findings from the report include:

• 50% of Germans would pay for vacations with credit, making them the least likely to go into debt for vacation
• 68% of Indians paid for their last vacation using savings
• In the US and China, younger consumers (aged 26-45) were most likely to use credit for vacation plans
• 60% of Americans said they would consider payment alternatives - like Paypal instead of credit cards

Tags: advertising, ecommerce, travel marketing, travel trends, Worldpay

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