The joint venture aims to extend flexible payment options for travellers. According to the announcement detailed by IBS Intelligence, the new payment solution introduced as a result of the collaboration will enable flynas’ customers to pay for their trips in four interest-free payment instalments. Additionally, travellers can now get their tickets with flexible payments.
Via this collaboration, the two companies reportedly seek to make travel more accessible for customers. From flynas’ standpoint, as quoted in the article detailing the partnership, the agreement reflects the company’s efforts in advancing digital transformation within the aviation sector.
Strategy-wise, the partnership comes at a time when travel demands have surged. As pointed out by numerous specialists, the rise in travel spending, as well as the growing interest shown in this sector, comes following the significant disruption caused by the pandemic.
More to this point, a report published by Nexi in 2023, after surveying respondents from Norway, Denmark, Finland, Sweden, Switzerland, Germany, and Austria, showcased a 52% surge in travel spending in 2022. According to Nexi’s findings, in 2022, EUR 175 billion was spent on travel, out of which EUR 45 billion was dedicated to flights, EUR 52 billion was invested in hotels, and EUR 33 billion was allocated to charter and package trips.
Despite the demand for travel, experts have outlined that the cost of travel is currently higher than ever before. The situation is caused by the decreasing buying power that is putting pressure on consumers’ travel budgets.
This is reportedly prompting them to seek methods to make payments easier and control expenses, hence the popularity of Buy Now, Pay Later (BNPL) payment solutions.
Based on the 2022 Barometer of better consumption carried out by Harris Interactive on behalf of Oney, 28% of individuals within the tourism industry's customer base are contemplating opting for divided payment solutions.
The introduction of BNPL payment options is not new, as the solution is already widely available for US and UK consumers. From the travel businesses’ perspective, introducing BNPL can purportedly help them increase their average basket as well as optimise their conversion rates.
Another payment-related shift in consumer behaviour when it comes to travelling has to do with the demand for digitalisation. In the last few years, consumers have adopted new payment technologies.
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