Credit cards enable over 40% of India’s online travel bookings: Report
Average ticket size of the air travel booking done through credit cards is around Rs 6,000 whereas it is only Rs 1,200 for the non-air travel bookings
July 26, 2018 / 05:29 PM IST
Around 42 percent of travelers booking online use credit cards to make payments, according to a report by online payment service provider PayU.
According to PayU insights, of all the payment modes available (Net banking, debit cards, credit cards, wallets etc) 42 percent of travel bookings are done via credit cards, indicating how users prefer the comfort of paying later.
“Average ticket size of the air travel booking done through credit cards is around Rs 6,000 whereas it is only Rs 1,200 for the non-air travel bookings. The impetus for this pattern also comes with pay later products that are available for the consumers,” it said.
Most used payment method based on volume are debit cards whereas the most amount spent is done through credit cards.
PayU claims to account for 70 percent of the travel transactions processed online in India giving it insights covering data across major travel aggregators and the most popular standalone vendor websites.
Credit cards are also preferred because it provides the option of co-branded cards with firms. In many cases, transactions done by credit cards are encouraged by linking purchases to miles on select airlines. PayU insights highlighted 43 percent of all the travel bookings done by credit cards are for air travel.
The insights by PayU also suggest Indian travelers are impulsive when booking tickets last minute for the holiday season.
The booking patterns of users where the amount spent on overall travel bookings has increased multifold to 28.42 percent in Q4 from 18.48 percent in Q1 2017.
PayU insights also highlighted how the majority of the bookings are done during the day, with the peak concentrated from 9 am to 3 pm and the transaction curve declining towards the night. As per the findings, Wednesday and Thursday are the most active days in the week for travel bookings.