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Are ‘Pay When You Fly’ options the way to get people back in the sky?


Uncertainty is killing the travel industry. Snap border closures, lockdowns and unexpected quarantines are not exactly luring people out of the safety of home to travel. And then there’s the whole issue of refund uncertainty. 

 

81% of travellers confirmed that the increased risk of cancellations due to the pandemic is a barrier to booking travel this year, with refund uncertainty (46%) and the inconvenience of the refund process (38%) topping concerns when a flight is cancelled, a global Amadeus study revealed. 

 

 

 

According to Amadeus, several airlines are taking proactive steps to overcome refund uncertainty through innovative new payment options. 

 

A major European carrier has taken the lead with a ‘Pay When You Fly’ (PWYF) option, allowing travellers to make a flight reservation (which also includes a hotel or car hire) by paying a small deposit in the region of 15% and then settling the balance a few weeks before travel.

 

According to the Amadeus study, PWYF is the most appealing payment option (39%) compared to traditional pay at booking (36%) and ‘Buy Now Pay Later’ (BNPL) schemes that require the traveler to enter a credit agreement for the entire balance (24%). 

 

As well as building confidence by overcoming refund uncertainty, PWYF could boost industry revenues with travellers willing to spend 36% more per trip on average, and 49% of travellers more likely to add additional services like meals and bags, if  PWYF is offered by the airline.

 

To read the report, click here.

 

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Published: 30 June 2021


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