A survey was conducted in conjunction with Google Consumer Surveys on over 1,000 people between the ages of 18 and 65 from the United States in March of this year. The report published by Splitit Payments Ltd (a high-end global payment solution) says that many consumers wish to pay for their travel costs in no-interest monthly installments, and if they had the opportunity, they would also make travel related purchases ahead of time and allocate more of the budget to upgrades, food, and entertainment.
Meeting the consumers’ needs
According to the report, youthful consumers are extremely cautious of debt and would rather pay for their travel expenses in cash more than all the other age groups that were surveyed. Many Americans have an average debt of around $38,000. Although a little more than 50 percent of the respondents plan to travel and around 33 percent anticipate spending over $500 on flights and accommodation, financial stress creates challenges for consumers’ ideal vacations. Travel businesses trying to get their share of consumers’ vacation budget will battle to earn more unless they are prepared to offer the financial preferences that travelers desire. The report suggests that the option to pay for travel costs in monthly installments without interest is a massive attraction for travelers. It allows them to purchase their tickets much sooner, upgrade certain travel amenities, and spend more on the actual vacation itself.
“Summer is high time for exploring new places and relaxing on vacation, but in reality, many would-be travelers are plagued by financial anxieties that make vacations less feasible,” said CEO and Co-Founder of Splitit, Gil Don. “It’s up to travel merchants to offer consumers innovative solutions that will stretch their horizons, not their budgets, enabling them to afford travel expenses without racking up debt. Flexible payment solutions are a highly effective way for merchants to ease eager travelers’ budget woes.”
If the option of no-interest monthly installment payments was available, 56 percent of respondents said they would purchase flight tickets and 42 percent said they would pay for accommodation with this method. 37 percent said they would spend more on entertainment, 30 percent said they would spend more on upgrading their hotel room, and 28 percent said they’d spend more on food.