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Published on 20/10/2024
Travel | Payment in instalments more intuitive than ever
Since COVID, the tourism industry has experienced, and continues to undergo, profound transformations. Payment in instalments is one of the tools supporting tourism professionals through these changes. Cyril Cauchois, our expert in payment solutions specialising in the tourism and leisure sectors, breaks down this trend for us. With 10 years of experience working with major players in the payment industry such as Oney and Franfinance, and collaborations with renowned brands (Veepee Voyage, LeGroupe Karavel, Leclerc Voyages, Siblu), Cyril brings a unique perspective on the travel industry. He shares his expert insights on the current trends shaping the travel sector.
What’s your view on payment in instalments in the travel industry?
Payments in instalments, also known as BNPL (Buy Now Pay Later), have transformed the travel industry in recent years. It’s important to understand that travel is a unique service, not a typical material good. It’s often a well-thought-out leisure purchase that forms part of a broader experience.
FLOA’s payment solution2 fits seamlessly into this experience, offering a smooth and intuitive process. This is crucial because customers usually spend a lot of time selecting their trip, whether it’s a short weekend getaway, a longer holiday, or even just a flight ticket, often revisiting the booking process multiple times. That's why we ensure that our payment solution is prominently featured throughout the entire journey.
Over the past decade, payment in instalment2 payment has become a standard in the travel industry. They complement other payment methods, especially the “deposit-balance” model, by allowing customers to spread out the entire cost of their trip.
The figures in France speak for themselves: in the first half of 2024, we saw a 14%1 increase in bookings paid in instalments and made more than six months before departure, compared to the same period in 2023. This clearly shows that more and more consumers are using this payment solution to fund their holidays.
What are the major trends currently shaping the travel industry?
We’re seeing two major trends emerge. Firstly, the rise of sustainable travel and responsible tourism. Since the COVID-19 crisis, travellers are opting for closer destinations, favouring outdoor activities and camping, as well as more authentic options like guesthouses and B&Bs. They’re seeking genuine experiences, connecting with nature, and engaging more with local cultures. BNPL plays a central role in this shift.
We’re also seeing a growing demand for unique travel experiences. Customised, off-the-beaten-path offerings, once largely reserved for honeymoons, are now in much higher demand.
Our recent data backs up these trends. Over the past two years, we’ve seen a 13%1 average basket increase per booking, suggesting that travellers are investing more in unique and personalised experiences.
At the same time, while 80%1 of bookings are still made less than three months before departure, there’s been a 50%1 growth in bookings made more than six months in advance over the last two years. This indicates a trend towards greater planning, likely linked to the desire for more elaborate and tailored trips.
How does Floa, and its payment solutions, meet the specific needs of the travel industry?
At Floa, we’ve developed payment in instalment solutions that are perfectly suited to the travel sector. Simple to use, these solutions seamlessly integrate into the customer journey, whether for an online or physical travel agency, enhancing the overall booking experience.
Depending on the merchant’s requirements and customer profile, we finance large amounts, catering to the growing demand for more premium holiday packages. The average booking amount is €1,2001 and can exceed €6,0001, far above the market average of €630.
Our strength lies in our deep understanding of the industry, which stems from working with key market players. We continually refine and evolve our scoring and fraud models to ensure high acceptance rates. FLOA’s payment in instalments offering is co-developed and tailored with each merchant to fit all types of travel purchases—flights, hotels, outdoor accommodation packages, and more.
Can you share your vision of your role and your daily objectives?
For me, it's crucial to have an in-depth, up-to-date understanding of both the travel industry and split payment solutions. I actually see FLOA as a real player in the travel sector, not just a BNPL service provider.
My main goal is to stay on top of industry trends and developments. I attend numerous events where I meet key players in tourism. These interactions are vital for building long-term, trusted relationships.
Another key part of my role is expanding our knowledge of decision-makers within the sector. By understanding their specific needs, we can better support them and contribute more effectively to their growth.
How do you concretely support merchants in the travel sector?
Our approach goes far beyond just providing an split payment service. I personally ensure that we maintain a close partnership with each merchant, whether it's a major airline selling tickets or a small bed-and-breakfast owner, closely monitoring their activities and evolving needs.
A key aspect of our support lies in the special operations we implement to enhance the visibility of our partners. For instance, we've conducted co-branding campaigns with major players like Fram, Very Chic, and Veepee Voyages.
FLOA's BNPL solution is a genuine sales activation tool. We constantly roll out new features to keep our offering attractive and effective.
The satisfaction of our partners is paramount. Not only does it ensure personalised monitoring and generate business, but it also turns every merchant into a potential advocate for our services.
This tailored approach is proving effective, as evidenced by the average basket increase in the travel sector that I mentioned earlier. It demonstrates the effectiveness of our solutions in driving our partners’ sales!
Are you a tourism professional, travel agent, tour operator, or airline? Payment in instalments presents a unique opportunity to boost your sales, retain your customers, and stand out in a rapidly changing industry. Cyril Cauchois and the experts at Floa are ready to help you integrate these payment solutions2 into your offerings. Our bespoke solutions, perfectly tailored to your booking journeys, allow you to rethink your customers' purchasing experience and drive your growth in the travel world.
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