Data published on Monday (10 July) by payment provider BR-DGE shows spending is set to reach £40.9 billion this year, just 6% below the £43.5 billion spent in 2019.
“Travel firms are seeing positive momentum as consumer demand for hassle-free holidays remains robust, despite disposable incomes being hit by the increased cost-of-living,” said BR-DGE travel specialist Emily Whalley. “We continue to see holiday goers looking for value and flexibility, seeking out discounts and deals for quick getaways.”
The survey of 1,200 UK consumers revealed how Brits are not being discouraged by higher prices, with two-thirds (65%) of UK holidaymakers planning to spend more than £1,000 on travel and holidays this year.
However, due to the challenging economic backdrop, 10% of the respondents said have used alternative payment options, such as buy-now-pay-later or by paying in instalments.
The percentage of people choosing different methods in the future increases to 18% among millennials, while 42% of people said they would be open in the future to using these methods.
“This data further shows the value of creating bespoke payment workflows and checkout experiences that align with different consumer habits so that holiday goers are supported throughout the customer journey,” Whalley continued.
Digital and fractured payments, however, continue to represent a massive challenge for the industry. According to BR-DGE, 13.4% of all payment transactions failing, eroding travel providers’ margins and "creating friction across the customer experience".
To help travel companies make more seamless payments, BR-DGE has launched a payment platform, allowing agents and operators to trial and then choose payment workflows that fit their clientele the most.
“For travel providers, this highlights the importance of delivering an end-to-end frictionless customer experience in order to drive loyalty, protect margins, and deliver a first-class holiday for all,” Whalley said.
