Two more travel companies are offering customers a budget-friendly way to plan a holiday by allowing them to spread the cost of their airfare over three-, six- or 12-month instalments.
Online travel apps CheapOair and OneTravel will soon operate a new feature that allows customers to pay for their airfare in instalments. It means that customers don't have to pay for the full cost of their flight upfront and can instead spread the cost out into more manageable payments that suit individual budgets, choosing between three-, six- or 12-month instalments. Fareportal, the company that operates CheapOair and OneTravel, said its partnering with online lender Affirm to introduce the new feature.
The payment plan option will appear at the checkout part of the booking process and customers will need to input five pieces of information to determine eligibility and a decision will then be made in real time. As soon as the payment plan is approved, customers are offered an annual percentage rate (APR) between 10% and 30% and can calculate what they'll need to pay on a monthly basis for each of the three options available. For example, a $300 (£230) purchase at 10% APR spread out over three months would cost $101.69 (£78) per month.
They're not the only travel companies opting for the 'buy now, pay later' feature. Expedia also partnered with Affirm, run by PayPal co-founder Max Levchin, to launch a monthly payments option for airfares over $200. Virgin Holidays, Airfordable, FOMO Travel and UK-based travel company Thomas Cook also introduced similar payment options for customers. You can see a more detailed report on each company's plan here.
