Skift Take
The pandemic has brought to the forefront the inequality of flight pricing and payment methods. Offering interest-free deferred payments to all passengers would be a step in the right direction for airlines.
After months of being shut away from traveling and seeing family and friends, reopened borders and vaccine availability are enticing many people to travel. But travelers are still wary of booking flights ahead of time with the uncertainties of the lingering pandemic.
Foremost on their minds is the possibility of flight cancellations due to travel restrictions and refund uncertainties. The risk of not being able to get a refund, in particular, is creating a barrier to booking travel this year for 81 percent of respondents to a recent Amadeus study.
Boosting traveler confidence during the pandemic has become paramount for airlines in the travel recovery process with many airlines turning to "Buy Now Pay Later" credit payment models to ease the burden of paying everything upfront and stimulate bookings.
While the global study of 5,000 people who traveled at least three times before the pandemic found 40 percent of travelers would consider using "Buy Now Pay Later" to book travel this summer, many expressed concerns about incurring debt on credit, high interests, and refund process as a deterrent to using "Buy Now Pay Later."
Instead, 62 percent of those surveyed expressed an interest in booking travel this summer if airlines offered a "Pay When You Fly" option, allowing customers to make a small nonrefundable deposit and pay the balance closer to their departure date, reminiscent of lay
