The travel industry is built on experiences—whether it’s the anticipation of a dream vacation or the smooth execution of a business trip, every touchpoint matters. A critical component that often goes unnoticed but has a profound impact on customer satisfaction is payment flexibility. When it comes to making payments, consumers crave choice: A 2024 study conducted by Marqeta found that 42% of U.S. consumers would be interested in a payment card that could switch between credit, debit, and Buy Now Pay Later features.
For businesses in the travel industry, offering a variety of payment options not only helps enhance the customer experience but can also drive incremental conversions, foster loyalty, and ensure customer-centricity in an increasingly competitive market.
The Evolution of Payment Flexibility in Travel
Gone are the days when cash was the only accepted payment method for booking trips. Over the years, the travel industry has embraced rapid advancements in financial technology to cater to diverse customer needs.
- Cash and Traveler’s Checks (1980s): Before credit cards became the norm, cash and traveler’s checks were the primary means of payment. While these offered some level of convenience, they lacked universal acceptance.
- Credit Cards (1990s): The acceptance of credit cards revolutionized the travel sector by introducing a frictionless way to secure bookings. Yet, limitations like international transaction fees remained a challenge.
- Digital and Mobile Payments (2000s–2010s): With the proliferation of online travel agencies (OTAs), businesses began integrating digital wallets like PayPal and mobile payment systems. This allowed for faster, more secure transactions.
- Buy Now, Pay Later (BNPL) (2020s): The demand for financial flexibility has led to the rise of BNPL options like Klarna and Affirm, as well as the introduction of digital payments, offering customers innovative ways to fund their travel aspirations.
Marqeta Flex (2025 and Beyond): With BNPL setting the standard for financial flexibility, Marqeta will expand BNPL access with Marqeta Flex, wherever card payments are accepted. No longer confined to merchant checkout experiences, travel companies will be able to deliver buyers tailored options directly within their preferred payment apps and digital wallets.
Each of these advancements reflects a clear trend—the more flexible and inclusive the payment options, the better the customer experience.
The Tangible Benefits of Multiple Payment Options for Travel Sites
Integrating payment flexibility not only meets customer expectations but also provides significant advantages for businesses.
1. Improved Customer Satisfaction and Loyalty
Providing multiple payment methods caters to consumers’ evolving preferences, making it more convenient for them to access travel services. Whether it involves accepting local payment modes or offering BNPL plans, customers feel valued when their financial needs are accommodated. And as we all know, satisfied customers are loyal customers. By empowering users with financial choices, travel companies lay the groundwork for repeat business and trust.
2. Higher Conversion Rates
According to a 2024 global survey conducted by Marqeta, 38% of consumers would abandon a purchase if required to use a new app or payment method at checkout. So it’s no surprise that payment friction is one factor behind cart abandonment during online bookings. Offering a mix of credit cards, digital wallets, and payment installments ensures fewer potential customers leave mid-process.
3. Global Accessibility
Travel companies cater to a geographically diverse audience spanning different currencies. Flexible payment options, including currency conversion features and multi-currency settlement, can help alleviate the friction between global travelers and local airlines, hotels and booking sites.
4. Streamlined Refunds and Compensation
Robust payment systems allow businesses to handle refunds and compensations efficiently for cancellations, delays, or disruptions. This is instrumental in crisis management and maintaining customer goodwill. Virtual and tokenized cards enable travel service providers to process refunds and reimbursements quickly to customers, at scale.
Unique Benefits of Payment Flexibility for Each Travel Sector
Payment flexibility is not a one-size-fits-all solution. Its benefits vary depending on the specific needs of the sector.
For Airlines
Flexible payment options enable travelers to choose installment payment plans for high-value ticket purchases. Integrating BNPL options, like Klarna and Affirm, helps to boost affordability and enhances last-minute booking conversions.
For Hotels
Hotels can implement secure deposits, Buy Now, Pay Later options, and loyalty wallet integrations to attract more customers. Features like pre-transaction approvals for incidentals can also minimize risks for hotel operators.
For Rental Platforms
Flexibility in payment allows rental platforms to accommodate options like upfront full payments versus partial payments. It also helps enable faster payments to property owners to expand their access to capital more quickly.
For Travel Booking Sites
Offering local payment checkout options for international users helps ensure more seamless booking experiences for customers worldwide. Additionally, unified billing systems can consolidate multi-vendor invoices so you can pay out travel partners more efficiently.
Implementing Flexible Payment Options for Traveler Satisfaction
The payment landscape is evolving at breakneck speed. Travel businesses that integrate these trends early into their customer experience may well gain a more competitive edge.
Ready to put payment flexibility into practice? Here are three of the most important tips to keep in mind:
1. Understand Customer Preferences and Behavior
You know your customers best. Understand preferred payment methods and align your offerings with their needs to best fit your business model. The more seamless the payment experience, the more satisfied your customers will be.
2. Find the Right Payments Partner
Enabling payment flexibility requires time, resources, and expertise. By leveraging an established program manager, travel companies can reduce their time to market and take advantage of strategic guidance throughout every step of the process, helping to ensure they implement card programs that are set up for long-term success from the get-go.
3. Prioritize Payment Flexibility for Long-Term Success
The travel sector's growth is contingent on customer satisfaction and repeat transactions. By leveraging payment flexibility, businesses can unlock powerful opportunities to enhance experiences, attract loyal customers, and drive incremental conversions for travelers across the world.
Stay competitive by evaluating your payment systems today and investing in innovative solutions that can help make travel more accessible for everyone.
Want to revolutionize your travel booking experience? Start by assessing your payment flexibility strategy with Marqeta today.
