As our in-flight experience changes, so does the way we pay to fly.
WorldPay, a global electronic payment processing company, recently released a three-part study examining emerging payment systems in the aviation industry. With an increase in airline distribution channels, payment options and their requirements continue to grow.
The study evaluated 68 low-cost and traditional global airlines, highlighting their use of alternate payment options including mobile payments, social media and on-board purchases and self service kiosks, in addition to gauging how important these options will be in coming years.
With the FAA now allowing travelers to use cell phones during flights, opportunities abound for mobile and social media payments. Check-in and flight bookings have been available via mobile devices for a while, but airlines want to move into using devices for other payments like in-flight duty-free goods, food and drink, onward travel, and seat upgrades.
Consumers are hesitant to move too quickly, though, with 65% of travelers surveyed concerned about the possibility of fraud involving airline mobile payments.
While hotel brands on social media channels have experimented with social reservations, 29% of airlines plan to offer tickets and other purchase options though social media. KLM Airlines has already rolled out a feature that allows users to pay via social media channels. Airlines understand that there is a large potential for growth in social media payments as it could tie directly into marketing efforts.
Despite the benefits to using social media as a method of payment, it is still a relatively new sales channel that not a lot of brands have enough experience with. Other challenges travel brands will face as more social payment trends emerge include the need for large social media management teams, the creation of new processing systems, and the evaluation of their programs’ ROI.
With all of the opportunities awaiting travel brands in social payments, we imagine these trends will be taking off very soon. When booking your next flight, see what the payment options are—you just might be able to book on Facebook or Twitter!