Ecommpay Report Highlights Payment Innovations Driving Growth for UK Online Travel Agencies

The UK online travel sector faces a significant challenge with an 81.7% cart abandonment rate, the highest across e-commerce. A recent in-depth analysis by global payments platform Ecommpay reveals how optimising payment strategies could unlock approximately £16.5 billion in additional revenue for travel merchants.

In its report, Payment strategies of leading UK travel companies, Ecommpay examines the payment infrastructures projected for 2025 across the UK’s top 10 online travel agencies (OTAs): Booking.com, Airbnb, TUI, easyJet Holidays, Expedia, Jet2holidays, On the Beach, Lastminute.com, Travel Republic, and Loveholidays. The study identifies best practices and critical shortcomings that continue to hinder revenue growth within the sector.

Payment-related issues account for 37% of customer drop-offs during checkout, stemming from factors such as lack of trust, limited payment options, and card declines. Addressing these challenges through smarter payment design offers a substantial opportunity to recover lost bookings and increase conversion rates.

The report highlights several key characteristics shared by the highest-performing travel brands:

• Mobile-first payment experiences: Leading OTAs prioritise digital wallets and seamless mobile checkout flows to tackle the sector’s notable mobile conversion gap.
• Affordability options: Buy Now Pay Later (BNPL) and instalment payment plans have become standard, enabling customers to commit to higher-value trips while reducing abandonment.
• Local payment methods: Offering region-specific payment options enhances trust and improves cross-border conversion for global travel platforms.
• Open banking adoption: Early adopters benefit from reduced transaction costs, stronger authentication, and fewer false declines.
• Flexible payment terms: Features such as low deposits and interest-free plans help build customer confidence beyond simple transaction processing.

Roy Blokker, Head of Strategic Sales at Ecommpay, emphasises the strategic importance of payments in travel commerce: “Travel businesses can no longer afford to treat payments as back-end plumbing. Our analysis shows that leading OTAs are transforming the checkout process into a strategic product. Brands that embrace this approach will experience significant improvements in conversion rates, customer trust, and lifetime value.” He adds that there are clear opportunities for travel companies to increase approval rates, reduce abandonment, and ultimately boost revenue.

Ecommpay supports OTAs by providing access to over 100 alternative payment methods, mobile-optimised checkout flows, open banking solutions, BNPL integrations, carbon-offsetting options at checkout, and advanced chargeback management. Blokker concludes, “We enable travel brands to modernise their payment stacks without complexity. Whether enhancing mobile conversion, introducing new payment methods, or launching instalment plans, our solutions help turn payment strategies into measurable business growth.”