Solutions for refund uncertainty

Solutions for refund uncertainty

‘Refund uncertainty’ is having a major impact on traveller’s confidence and bookings in 2021, according to a recent study by Amadeus.

The survey of 5000 travellers across the world shows that 81% of respondents feel the increased risk of cancellations due to the pandemic is a barrier to booking travel this year, with refund uncertainty (46%) and the inconvenience of the refund process (38%) topping concerns when a flight is cancelled.

Amadeus says several airlines are taking steps to overcome this uncertainty through new payment options.

‘A major European carrier has taken the lead with a ‘pay when you fly (PWYF)’ option,’ says the Amadeus report. ‘This allows travellers to make a flight reservation (that includes a hotel or car hire) by paying a small deposit in the region of 15% and then settling the balance a few weeks before travel.’

According to the Amadeus study, PWYF is the most appealing payment option (39%) compared to traditional pay at booking (36%) and buy now pay later schemes that require the traveller to enter a credit agreement for the entire balance.

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