Installments and Local Payment Methods in the Future
Looking ahead to the coming year, one thing is clear: customization and personalization are two trends that will continue in the group and multi-day travel space. At the outset of 2023, WeTravel’s Annual Travel Trends Report spotlighted these as two significant themes to look out for – and throughout the year they’ve gained momentum, especially personalization in payment methods and payment schedules.
In the increasingly globalized world of travel and tourism, travelers have come to expect a simple, localized payment experience – similar to what is provided by Amazon or Booking.com today. One crucial aspect of this expectation is providing a range of payment options that suit the unique requirements of
various markets. Local payment methods, such as Pix in Brazil, iDeal in the Netherlands, ACH in the U.S., and Sofort in Germany, play a pivotal role in this regard.
In addition, our recent data shows that 80% of travelers prefer to pay for expensive tours in multiple installments, with the most common number being four. Ensuring that your customers can pay when, where, and how they want to pay is more important than ever.
Why local payment methods and installments matter
But why do local payment methods and installments matter? They provide a sense of familiarity and convenience, as customers can pay using the payment methods they are already accustomed to. This minimizes friction in the payment process, making it easier and more comfortable for customers to book with you. By offering local payment methods, group and multi-day travel businesses gain a competitive advantage in local markets.
They can stand out from competitors who may not offer the same level of convenience and choice when it comes to payment options. This can lead to increased market share and customer
loyalty. In addition, local payment methods often come with lower costs and additional layers of security designed to protect businesses from “friendly” fraud and chargebacks. For travel businesses, local payment methods are generally less expensive to process than credit cards or wire transfers, and tools like WeTravel can ensure that you save money on any foreign exchange costs. By using these methods, travel businesses can save money on processing fees, and also save time and money by helping mitigate the risk of fraudulent transactions.
Finally, accepting local payment methods is a testament to a travel business’s commitment to understanding and meeting the unique needs of local customers. This helps in building a more localized and personalized relationship with the clientele, which can foster long-term customer loyalty. As we look ahead to 2024, the expectations of travelers continue to increase. To stay up to date, ensure your business is prepared by offering the local and personalized payment methods and installment plans that travelers want.
As WeTravel’s CEO, Ted Clements brings a customer-centric approach to fintech and B2B SaaS, with a focus on solving operational pain-points in the travel industry. As former COO and acting CEO of FareHarbor, he was part of the team that led FareHarbor, a B2B SaaS business serving day tour operators, to a successful acquisition by Booking Holdings. He joined WeTravel in January 2023, bringing his expertise and client-focused mentality to WeTravel’s global team. He and his family are based in Amsterdam, WeTravel’s headquarters, where they enjoy spending time outdoors and exploring the world — especially through geology, one of Ted’s passions.
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