Travel now, pay later is the new craze among jet-setting Indians who refuse to be held back by financial constraints when visiting foreign and expensive destinations. Due to pent-up demand in the travel and tourism sector, many Indian tourists are opting for loans to fund their foreign travel plans. Travelers are finding it easier than ever to pay off in EMIs thanks to a plethora of pay later (BNPL) offers from banks, travel companies, and third-party lenders. Travel companies are seeing a surge in interest in ‘Buy Now, Pay Later’ (BNPL) deals. It is more popular among IT professionals and honeymooners.Travel loans account for only 1 to 2% of travel agents’ Gross Merchandise Value (GMV). However, as a payment option, its share of GMV is expected to be around 5%. According to leading tour operators, the EMI option is appealing to customers. This option is desired by up to 40% of customers. Some of the largest travel companies are seeing up to 40% of their customers opt for such loans; for example, Thomas Cook saw a 25% increase in travellers seeking such options to fund their vacation plans. Thomas Cook (India) president and country head Rajeev Kale told TOI that his company offers credit facilities with repayment options ranging from 3 to 13 months in collaboration with multiple banks.Madura Travel Service, based in Chennai, reported a 30% increase in the number of honeymooning couples and small families opting for loan facilities such as credit with EMI option, personal and travel loans from banks to fund travel plans between January and June of 2022. Because Indians are consummate value seekers, the companies have announced a slew of special offers such as Buy One Get One Free, Early Bird Discounts, and Travel Now Pay Later, particularly in the run-up to the holidays.
By Subhechcha Ganguly
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?