Millennials seek payment flexibility when booking flights and holidays, research shows

Affirm poll indicates offering more choice on payments could improve loyalty and boost conversions

Payment flexibility is one of the most important factors influencing travellers when booking flights and holidays, according to new research by Affirm.

Some 78% of the 2,000 millennials polled by the payment network said flexibility to spread payments is important when booking a holiday or trip.

And 66% told Affirm such flexibility would be the deciding factor between two airlines offering the same journey at the same price. 

Ruth Spratt, UK country manager, said: “It’s no longer enough to just offer a great price. For younger generations, real value is about peace of mind - knowing they can book with a payment experience that is convenient, flexible, and fits their lifestyle. 

“Travellers are planning with greater purpose and intentionality, with decisions over how they pay increasingly influencing their destination choices. For the travel industry, offering flexible payment options is no longer a nice to have but a must for meeting consumers’ expectations.”

Affirm says financial pressures are reshaping travel habits, with 43% of millennials in its poll saying they have postponed or cancelled their travel plans due to costs in the last year. 

Hidden fees (62%), a lack of flexible ways to pay (61%) and large upfront payments (58%) are the biggest barriers to booking - outweighing the overall cost, the research found.

More than a third (37%) of respondents pointed to hidden fees as their biggest sources of financial stress while 32% said the same of surprise add-ons. 

When asked about spreading the cost of a trip without incurring additional fees, the majority of millennials said it would transform how they book: with 70% saying they would book further in advance, 66% saying they would book more trips and 67% saying they would upgrade their travel if costs could be spread. 

More than half (51%) of polled millennials said they spend more than £2,000 annually on travel – which Affirm said signals a strong demand for travel that airlines and booking sites can unlock through flexible payment options.

The firm says its research shows that just 40% of consumers of every age believe airlines are doing enough to make travel financially accessible. This increased to 49% for booking sites. 

Affirm says this data suggests travel providers have a clear opportunity to boost sales and increase customer loyalty by offering more flexible and transparent payment options.

Spratt added:“Travellers want the freedom to book on their own terms, without the sting of hidden costs or large upfront payments. 

"This research highlights the clear upside for airlines and booking sites: by offering flexible, transparent payment options, providers can unlock earlier bookings, more upgrades, and repeat business - driving loyalty and conversion while building trust with travellers”.