As airfares soar during the peak summer travel season, UAE residents are increasingly turning to 'travel now, pay later' schemes to manage their travel expenses.
This innovative payment solution, akin to the popular 'buy now, pay later' model, allows travelers to spread the cost of their trips over several months.
Local airlines and banks have collaborated to offer installment plans, enabling residents to embark on their vacations without the burden of upfront costs. Abu Dhabi Islamic Bank, RAK Bank, and Citibank are among the institutions providing these flexible payment options. Some plans even feature zero profit credit, making travel more accessible to a broader audience.
Meerah Ketait, head of retail and leisure UAE at dnata Travel, noted a significant interest in these payment options.
"We actively promote flexible payment solutions, which enable our customers to pay with ease. This is especially preferred for longer stays or group bookings,"
Ketait said.
dnata Travel has partnered with 12 local banks to offer Easy Payment Plans (EPPs), doubling their bank partnerships in the past year due to growing demand.
Avinash Adnani, Managing Director of Pluto Travels, highlighted the practicality of the 'travel now, pay later' model for budget-conscious travelers.
"Many people can’t afford to pay Dh10,000 upfront but can manage Dh2,500 in four installments. This option allows for more extensive travel plans, like adding Western European destinations to a trip initially planned for Georgia,"
Adnani explained.
The rising popularity of these flexible payment options reflects a significant shift in how UAE residents are financing their travel. With the average order value for travel reaching $300 (Dh1,300) and a 115% growth in sales for travel merchants over the past year, platforms like Tabby are also seeing substantial benefits from this trend. As summer vacations beckon, 'travel now, pay later' schemes are set to make a considerable impact on the travel industry in the UAE.
News Source: Khaleej Times
