- About 85% of Chinese consumers travel for leisure at least once a year
- Credit and debit cards are still broadly the most popular means to pay for trips globally (36% and 29% respectively), with PayPal taking a strong market share (17% globally) in most countries and across age groups.
- Electronic payment methods feature strongly in China; in China 78% use Alipay as their preferred payment method
- Seven in 10 Chinese travellers state that they had been victims of fraud
More than a third of British, American, Chinese, French and German travellers surveyed globally (36%) are unhappy about not being able to pay the way they want when booking holidays online, according to an online survey* of 7,400 consumers by YouGov and ACI Worldwide, a global provider of real-time electronic payment and banking solutions.
Lack of transparent pricing is another large concern for travellers, with 66% globally saying there are too many hidden fees such as add-ons when booking trips and tickets online, resulting in final prices that are different to the ones advertised.
“The global travel industry is a huge growth market worth US$2.2 trillion a year, with annual growth rates of about 10%. The market has undergone massive changes in the last decade, many of them driven by digitalisation. Digital channels have empowered travel operators to provide new routes to market and travellers are now able to research their options online, and then choose exactly how the book and pay for their vacation or holiday breaks,” said Peter Moedlhammer, Head of Global eCommerce Solutions, ACI Worldwide.
“What is surprising is that many consumers are unhappy with one or more aspects of their online customer journey, whether it is price transparency, the ability to make changes to a booking or to pay with their preferred payment method. If travel operators want to compete effectively in this very competitive market, they need to address these issues urgently.”
Other key findings and trends:
About 85% of Chinese consumers travel for leisure at least once a year, compared to the other countries studied. Next in line were consumers from both France and the UK at 78%.
On average, nearly two in five (37%) of respondents globally travel one to two times a year while more than one in five (22%) do so three to five times a year.
Almost two-thirds (65%) of travellers globally spend between US$320 and US$3,800 on leisure travel annually, with a third (33%) spending more than US$1,300 per year.
Globally, 74% prefer to book their travel via a digital device (computer, laptop or mobile phone) and on average, only 10% prefer to book in person.
Travel comparison websites have significant market share, with 30% of travellers preferring to book via this channel.
Payments preferences
Globally, three in 10 travellers want a range of payment options available and 36% feel frustrated if they cannot pay via their preferred method.
Credit and debit cards are still broadly the most popular means to pay for trips globally (36% and 29% respectively), with PayPal taking a strong market share (17% globally) in most countries and across age groups.
Local payment methods feature strongly. In China 78% use Alipay as their preferred payment method, while in Germany 33% of consumers prefer to pay via direct bank transfers.
Transparency and data security are vital for customer loyalty:
Two-thirds of respondents find a lack of transparent pricing annoying.
Nearly one-third (32%) of respondents are concerned about what travel companies do with their personal data and 34% say operators should be more transparent about what they do with customers’ personal data.
One-third of travellers globally have experienced fraud either while booking a holiday or while travelling. Seven in 10 Chinese travellers stated that they had been victims of fraud, the highest incidence among all countries studied.
“Our findings highlight that globally, there are a number of key service trends travellers value most when it comes to booking trips online. Local and alternative payment preferences as well as fraud and security impact not only the purchase but also the travel experience. These factors influence travellers’ choice of operators, and whether they return to those providers in the future," said Moedlhammer.
“With downward cost pressures and the strain of competitive threats weighing on travel operators, the need to understand customer buying drivers and preferences has never been more important.”
ACI Worldwide, which powers electronic payments for more than 5,100 organisations around the world, recommends that online travel operators:
- Understand the local and regional payment preferences for target traveller markets. There are over 300 different online payment methods worldwide; do not assume a one-size-fits-all approach will work
- Research current and emerging alternative payment methods which can improve conversion options on high priced vacation and travel ticket items. Lost opportunity costs can hamper revenue and future business
- Develop an integrated payments and fraud management approach for managing transactions – travellers want to feel confident and secure in the operators with whom they choose to do business
*All figures, unless otherwise stated, are from YouGov. Total sample size was 7,433 adults, including 1,004 Chinese adults, of which 5,283 are travellers. Fieldwork was undertaken between 4 and 17 July 2018. The survey was carried out online. The figures have been weighted and are representative of all adults in their respective countries (aged 18+).
