Most travellers are concerned about the possibility of cancellations if there is a pandemic.A study by Amadeus of 5,000 travelers worldwide reveals the impact of refund uncertainty on bookings and confidence.A majority of 81% believe that a higher risk of cancellation makes them hesitate to book.When a flight is cancelled, the top concerns are the uncertainty around refunds (46%) as well as the inconvenience caused by the refund process (38%).Unnamed European airlines adopted a pay-when-you fly initiative.Passengers can book a flight by making a small deposit of around 15%, and then paying the balance several weeks before departure.This scheme is 39% more appealing than traditional pay at book (36%), and buy now, pay later (24%), which require travellers to sign a credit agreement to cover the balance.According to the study, pay-when-you fly could increase industry revenues as people are willing to spend on average 36% more per flight and 49% more likely add services such as meals or bags.Bart Tompkins, Amadeus payments managing Director, stated: We are entering a critical stage for travel recovery and our industry must build confidence at all times.Pay when you fly is a way to increase traveler confidence. It encourages travel planning and booking in uncertain environments with changing government restrictions.This new approach could result in higher-value bookings as travellers will only have to pay the balance when it is clear that the flight will depart as scheduled.
