Online booking distrust a threat to travel companies
Fear of credit card fraud is preventing the majority of people from using the internet to book overseas holidays, new research shows.
A poll by fraud prevention and payment processing firm ClearCommerce Europe found that 66 per cent cited fear of credit/debit card fraud as a reason not to book online.
The annual survey showed that consumers’ preferred method of booking holidays is still visiting a travel agent in person.
It also revealed that UK consumers are more likely to book a mini break to a European city online (88%) than a long-haul (16%) or adventure holiday (31%). Previous research from ClearCommerce indicated the same trends in 2002 (city break: 67%, long-haul: 22% adventure holiday: 20%).
ClearCommerce said: “Consumer distrust of online bookings should be a matter of serious concern for the travel industry.
“With 53% of UK households online and a greater consumer presence on the world wide web, travel websites that ignore consumer fears and don’t become security conscious are literally throwing potential revenue opportunities down the drain.”
The company’s business development director Alan Smith said: “Although credit card fraud losses fell by more than five per cent last year, card-not-present (CNP) fraud is a serious business, covering not only e-commerce but telephone orders as well.
“According to the Association for Payment Clearing Services (APACS), £138.8 million was lost to CNP fraud in the 12 months preceding June 2004, an increase from 2003. When faced with figures like this, retailers really cannot afford to become complacent.”
He added: “Travel merchants must partner with established fraud prevention experts to help them to understand the very latest criminal activities which are robbing them of their revenues. They also need to implement robust and flexible online fraud prevention solutions to prevent any future losses.
“Consumers will only feel reassured enough to book holidays online when they know that a particular merchant is doing everything it possibly can to combat fraud.”
As online travel bookings increase, so will e-ticketing, posing more opportunities for fraudsters. But only six per cent had experienced problems with e-ticketing and these were all non-fraud related, according to the survey.
Report by Phil Davies
Phil Davies
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