Survey: Security outweighs cost in travel payment choices

A recent study by Outpayce has highlighted the significance of payment security in shaping travel purchase decisions among consumers.

The survey, involving 4,500 travellers from five different markets, indicates that over 70% of travellers prefer to book with travel companies that have a strong reputation for secure commerce. This challenges common notions that consumers predominantly value convenience and cost over security.

According to the survey, 67% of respondents would not be swayed by a 5% discount to book with a company known for inadequate cyber security. On average, consumers said they would need a 38% discount to overlook a poor cyber security reputation. "It's clear from this research that there is an issue with the perception of security, which is making it harder to deliver smooth one-click payments," commented Jean-Christophe Lacour, SVP & Global Head of Product & Delivery, Outpayce from Amadeus.

Payment fraud appears to be a prevalent issue, with half of the global respondents having experienced it. The survey shows that this issue is particularly acute in Brazil, where 89% of respondents have been victims of payment fraud. In contrast, the rates of fraud were lower in the United States, United Kingdom, Singapore, and France, with reported instances ranging between 37% and 44%.

Outpayce's research found that 64% of travellers perceive an increasing trend in payments fraud. The travel industry is highlighted as a significant target for these fraudulent activities. A related study by Juniper Research found that 46% of all payments fraud targets the airline sector, emphasising the need for the travel industry to improve its fraud prevention measures without compromising user experience.

Consumer experiences with fraud prevention measures reveal mixed feelings. Many respondents reported having their legitimate transactions declined, resulting in a negative perception of the travel companies involved. These challenges reflect struggles in accurately identifying fraudulent payments.

Concerns over data security persist with two-thirds of survey respondents expressing unease over storing payment details online with travel companies. Despite this, consumers store card details with an average of four different merchants. "Widely publicised data breaches have reduced consumer confidence and the industry needs to take proactive measures to rebuild trust," stated Lacour. He suggests that solutions such as tokenisation and advanced fraud screening can help enhance payment security.

Tokenisation, which replaces sensitive payment card data with a secure token, is gaining traction as a crucial technology to reduce risk exposure. This method ensures that travel companies do not store sensitive payment details, thus mitigating potential data breaches.

With the enforcement of Strong Customer Authentication across Europe, 75% of respondents affirmed that Two-Factor Authentication (2FA) is straightforward when making travel bookings. However, nearly half have abandoned a travel purchase when prompted for 2FA, indicating some resistance to the process, despite its perceived ease.

The data for the survey was collated by Opinium during the fourth quarter of 2024, encompassing respondents from France, Brazil, the United Kingdom, the United States, and Singapore.