Airlines and travel agents risk losing £5.45 billion from UK consumers this year due to failed payments, claims a new study.
The figure comes from payment orchestration provider BR-DGE, which said 13.4% of consumer payment transactions across the travel sector fail.
BR-DGE said the sum at risk equates to more than three times the total passenger revenue of easyJet (£1.49 billion) in the first half of this year and nearly double Virgin Atlantic’s pre-pandemic revenue levels in 2019 (£2.9 billion).
It said fragmented payments systems across the travel sector are under increasing pressure because of the “massive growth” in digital payments, presenting a “considerable challenge” to airlines and travel agents.
Most UK consumers will contact airlines and agents directly via phone following failed transactions, but they erode travel providers’ profit margins and creates friction across the customer experience, said BR-DGE.
Emily Whalley, travel specialist at BR-DGE, commented: “As the sector moves into its busy summer trading period, it is clear from the data that failed payment transactions remain a significant challenge for travel retailers and online travel agents.
“Amid the disruption at airports and increasing cancellations of flights, air passengers are increasingly on the lookout for a frictionless and smooth experience from their travel providers.
“The research shows that payments is just another area where the sector has to work harder to make sure all passengers receive a first-class experience.
“There is a massive opportunity here for airlines, travel retailers and online travel agents to provide a high-quality payments experience for their customers.
“This not only reduces overheads for travel sellers but also increases customer satisfaction and loyalty by making the digital payments process seamless.”
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