With many international countries finally reopening their borders and accepting foreign travellers, Indian travellers are eagerly awaiting the opportunity to explore foreign lands. However, due to pent-up demand and financial stress, travellers are choosing to pay for their international vacations on EMIs. This is working as a charm for everyone in the tourism industry.
With this new trend of travel now, pay later, which BNPL offers, several travel companies are witnessing an increase in demand. By opting for this, travellers are ensuring that financial stress is not stopping them from stepping out and exploring the world. The essence of travel is now more about exploring landscapes and not worrying about finance.
As per media reports, IT professionals and honeymooners are opting for the BNPL travel segment. At present, this method has contributed just one per cent to the gross merchandise value (GMV) of travel agents. However, by next year, loans are expected to increase to five per cent of the total GMV.
With this, travel companies and operators are enjoying the fruits of success. Travel companies like Tomas Cook are experiencing an increase in tourists opting for the travel now, pay later scheme by 25 per cent. The media report states that the travel company is also in partnership with banks to provide credit facilities to travellers and extend the time limit of three months to 13 months for repaying the amount.
Furthermore, another Chennai-based travel company, Madurai Travel Service, has also witnessed an increase of 30 per cent, as per media reports. They have witnessed a spike in EMIs, personal and travel loans at the beginning of the year. whereas, for international travel, they have witnessed a rise since June.
