Millennials & Gen Z show interest in airlines’ ‘buy now, pay later’ programs
Millennials & Gen Z show interest in airlines’ ‘buy now, pay later programs. It is possible that programs such as “Buy Now Pay Later” will play a vital role in the recovery of airlines that have adopted this payment method. This is because flexibility and economy are key factors influencing young travellers.
GlobalData predicts that millennials and Gen Z will drive the demand for “buy now, pay later” programs, as they were particularly affected by the pandemic. According to the company, partnering with fintech companies to offer these programs could appeal to price-sensitive travellers, including millennials and members of the Gen Z generation.
According to GlobalData’s Fourth Quarter 2021 Consumer Survey, 34% of Gen Zs and 36% of millennials said they were “extremely concerned” about their finances, as the two largest groups of respondents to the question.
Some great Examples
Uplift, a buy now, pay later service, strengthened its partnership with Southwest Airlines in January 2022. Southwest offers interest-free payment options for flights to the Hawaiian Islands.
Hollister, a GlobalData analyst for travel and tourism, comments on payment methods. “Buy now, pay later” programs benefit the airlines and their recovery schedules because smaller payments can be made over several months, which leads to higher cargo rates. As a result of the accessibility of this payment solution, it is not just low-cost companies that can benefit from it. American Express recently announced it is partnering with Delta. ”
As part of Delta’s flexible payment option, Amex customers can break down their Delta purchases into monthly instalments.
It is not enough for Delta to appear as a premium service; otherwise, they will have difficulty attracting Gen Z and millennial passengers. Instead, Delta can approach these younger age markets through this payment option. Afterwards, they can use its loyalty program to encourage repeat customers.
‘Buy now pay later’ programs could play a key role in recovering airlines that have adopted this payment method. “Flexibility and economy are key factors influencing younger travellers, and this solution could inspire even lifelong customers.”
So our question is; What is going on with European Airlines concerning flexible payments and ‘buy now, pay later programs?
Are we catching up with the US trends?
We will try to find answers soon
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Photo by John McArthur on Unsplash
