In a revealing new survey, FinMont, the global leader in payment orchestration, has uncovered significant challenges European travellers face in securing refunds for cancelled holidays. The study highlights a worrying trend in the travel industry—millions of travellers struggle to reclaim their money due to complex and inefficient booking and payment processes. Moreover, two-thirds of travellers admitted to not reviewing booking policies before finalizing their travel plans, leading to avoidable financial losses and heightened consumer frustration.
The Cost of Ignorance: Unchecked Policies Leading to Unclaimed Refunds
The survey, which delved into the online booking habits of European consumers, found that 10% of travellers encountered problems when attempting to cancel their holidays, often resulting in unsuccessful refund claims. This issue is compounded by the fact that a vast majority of travellers—67%—never bother to check the cancellation policies or payment terms before booking their trips. This alarming statistic underscores a widespread lack of awareness and preparation among travellers, leaving them vulnerable to financial pitfalls.
Hidden Fees and Complex Processes: The Industry’s Achilles Heel
One of the most prominent issues identified in the survey is the prevalence of hidden fees during the booking process. Approximately 33% of respondents reported being frustrated by unexpected charges that appeared late in the booking cycle, often causing them to abandon their bookings altogether. These hidden fees erode trust in travel providers and diminish the likelihood of repeat business as travellers become wary of deceptive practices.
Another significant finding is the growing complexity of travel bookings compared to retail shopping. One in five travellers (20%) expressed frustration over the cumbersome and confusing booking processes, which they find more daunting than purchasing other goods or services online. This complexity is a significant deterrent for travellers, particularly in an era where simplicity and convenience are paramount.
Loyalty and Transparency: What Travelers Want
Despite the frustrations, the survey revealed that 14% of travellers remain loyal to specific travel providers due to their reward schemes. This loyalty, however, is fragile, with consumers increasingly demanding greater transparency in pricing and payment options. A quarter of the respondents (25%) stated that they would prefer to rebook with companies that are upfront about costs, avoiding the “sneaky upsells” that have become all too common in the industry.
The Call for Change: Streamlining Payments to Regain Trust
Failing to address these issues could severely affect travel companies in an intensely competitive travel market. The survey’s findings indicate that the industry needs to embrace more transparent and flexible payment options, such as Apple Pay and Klarna. These methods appeal to younger travellers who value speed, convenience, and straightforward pricing.
FinMont, founded by the pioneers behind German airline Hahn Air, offers a solution that could revolutionize the industry. By streamlining both B2C and B2B payments into a single, coherent system, FinMont aims to eliminate inefficiencies and provide a more customer-centric experience. This innovative approach simplifies the payment process and enhances decision-making for travel companies, allowing them to address consumer pain points more effectively.
A Vision for the Future: Consumer-Centric Payment Solutions
Suby Valluri, CEO of FinMont, emphasized the importance of adapting to the evolving expectations of online consumers. “As a global travel payment orchestration platform, we help our clients provide a more customer-centric payment solution for travelers,” Valluri stated. “This survey gives us the insights we need to ensure we offer the right solutions for those looking to book their travel online. As consumer expectations for online bookings increase, travel merchants must offer a seamless solution that delivers a similar experience to other sectors.”
The message is clear: the travel industry must evolve to meet the demands of today’s consumers. By addressing the challenges highlighted in this survey, travel companies can improve customer satisfaction and secure their position in an increasingly competitive market.
For more information on how FinMont is leading the charge in transforming travel payments, visit FinMont’s official website.
Written by: Anne Keam
