Travel Now, Pay Later: Indians Choose New Offer To Fund Foreign Travels
As most countries have opened up for tourists after pandemic-induced curbs, Indians are thronging foreign destinations too.
As most countries have opened up for tourists after pandemic-induced curbs, Indians are thronging foreign destinations too.
The new offer from banks, travel companies and third-party lenders, travellers has made it easier for Indians to travel abroad and see the new tourist destinations.
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Travel now, pay later (BNPL) is the new fad among jet-setting Indians who refused to be bogged down by financial constraints when it comes to seeing foreign and expensive destinations.
Pay off with EMIs
Many Indian tourists are opting for loans to fund their foreign travel plans amid pent-up demand in the travel and tourism sector.
Interestingly, through BNPL offer one can pay off in EMIs.
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The growth in the BNPL segment of the travel market is being fuelled by IT professionals and honeymooners, reported Times of India.
Travel BNPL currently forms just 1% of the gross merchandise value (GMV) of travel agents, but these loans are expected to increase to 5% of the total GMV by next year.
Witnessing increase
Some of the biggest travel operators are witnessing as many as 40% of their customers opt for such loans; for example, Thomas Cook saw a 25% increase in travellers seeking such options to fund their holiday plans.
Rajeev Kale, president & country head, of Thomas Cook (India) said that his company offers credit facilities with repayment options of 3-13 months in partnership with multiple banks.
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¡°The average transaction size for an international travel loan is Rs 1.5 lakh,¡± Daniel D-Souza, president & country head, holidays, SOTC Travel, a subsidiary of Thomas Cook, told TOI.
Chennai-based travel company Madura Travel Service said between January and June of 2022, it witnessed 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 travelling plans.
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