What’s motivating travel companies to include cryptocurrency in their payment options?
Cryptocurrency is a new phenomenon in the travel industry, with few companies currently accepting it as a payment method. Alternative Airlines aims to offer everyone, everywhere the freedom to fly, which is why we wanted to be a first mover.
As cryptocurrencies gain traction, particularly among younger, tech-focused travellers, businesses offering crypto as a payment option can attract a new segment of customers and expand their market reach to those who may not have previously considered their services. Alternative Airlines puts its travellers first. Embracing these technological advancements aids us in enhancing the customer experience for those seeking to pay for their flights more conveniently and efficiently, especially for international transactions.
Some surveys suggest that 30% of American travellers prefer paying for bookings with cryptocurrencies. With 52% of our bookings coming from the US in 2024, offering crypto as a payment option taps into this market. With the potential to significantly enhance the travel experience for customers, making it more convenient, secure, and enjoyable, providing cryptocurrency payment options for our customers was a no-brainer.
We believe Buy Now, Pay Later (BNPL) in travel will continue to evolve significantly over the next five-ten years. We'll see a greater integration of these services, offering travellers more flexibility and personalised payment plans in all aspects of travel, not just flights. However, regulation will remain instrumental. A strong regulatory framework is essential for protecting consumers, encouraging responsible lending practices, and supporting innovation within this growing sector. This balance will be crucial for the long-term success and sustainable growth of BNPL in the travel industry. We will keep an eye on it to stay in tune with the evolving landscape.
Traveller behaviour has become much more focused on eco-friendly and sustainable travel options, which kickstarted us into introducing a carbon offsetting feature and green flight filter in 2023. Our customers can choose from more than 180 different currencies for both their flight bookings and their contributions to climate initiatives. This includes purchasing verified carbon offset projects, regardless of which airline they select.
Furthermore, we’ve found that our AOV (average order value) has increased by 7% from the first half of 2024, compared to the second half of the year. This could be down to a variety of factors, however, we believe the introduction of our longer-term financing options and the expansion into new markets with Affirm could be a big contribution towards this increase. In particular, the AOV for crypto users saw a significant increase of 23% which could be attributed to the surge of the most popular cryptocurrency on our site, Bitcoin, which rose in value by 71% in the last six months.
We’re all familiar with the huge increase in sustainability and environmentally friendly practices in recent years, with everyone becoming more aware of the effects they have on the environment. At Alternative Airlines, we recognised that trend and acted on it, by providing detailed information on how travellers can be more environmentally aware. Customers searching for ways to fly more sustainably can find information on our site for the most eco-friendly airlines, how to fly more eco-friendly and even sustainable plastic-free flights. Having this information widely available to customers is key to addressing the environmental issues within the travel industry.
Further to this, artificial intelligence (AI) is prevalent in payment processes across the board and is an area that is emerging rapidly in the travel industry. AI-powered payment platforms help to analyse traveller data, in turn providing benefits to businesses like ours by offering more personalised payment options for our customers, seamless and secure experiences, and an improved way to reduce the risk of fraud.
The risk of fraud may also be reduced by implementing mobile wallets such as Apple Pay and Google Pay in more travel businesses. With contactless payment becoming the norm, offering these options at checkout can enhance security – through features like biometric authentication – and streamline the booking process to minimise delays and frustrations for customers.
About Alternative Airlines
Alternative Airlines is on a mission to take the friction and frustration out of flight booking, making the experience effortless for travellers everywhere. By partnering with the world’s leading flexible payment brands, we give passengers the power to pay over time. Moreover, by combining next-gen tech with next-level support, we’re innovating the booking process and simplifying the customer experience to give everyone, everywhere the freedom to fly.
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