- Date : 06/03/2023
- Read: 4 mins
Travel now and pay later" schemes are becoming increasingly popular in India. This type of travel financing allows travelers to book flights, hotels, and other travel-related services upfront and pay for them at a later date. This is beneficial to travelers who may not have the funds available to book their trips immediately but still want to take advantage of the best prices.

Also read: Tips to travel and save smartly!
Why are people switching to ‘Travel now and pay later’ schemes?
Like the names indicate, Travel Now, Pay Later (TNPL) focuses on providing ideal vacations through a rapid financing process. This refers to the buy now, pay later (BNPL) travel plan that consumers have become familiar with within the retail industry.
This time for festivals as well as the travel season, so many of us are eager to get away from our busy lives. Travelers are hopping onboard the "travel now, pay later" craze that is taking over the domestic economy because they believe it to be the answer to all their money problems and travel troubles. The TNPL plan is being promoted by tour companies, flights, banks, 3rd party lenders, financial technology, and other investment firms.
When it comes to selecting how to set off repayment for their goods, Indian shoppers are spoiled for options. In addition to credit card payments and equally priced installments, numerous fintech companies have developed the "buy now, pay later" feature during the last three years. The COVID-19 epidemic that started in 2020 further encouraged customers to transition to BNPL programs. The transactional value of buy now, pay later services is predicted to grow at a compound annual growth rate (CAGR) of 32.5 % from 2022 to 2026 to approach INR 1.1 trillion ($15 billion) in 4 years, based on a forecast by descriptive statistics company GlobalData.
How does "travel now, pay later" work?
The "buy now, pay later" scheme, wherein you make a purchase and then repay for it over time by Monthly instalments, has a traveling counterpart in the TNPL. You are effectively taking out a credit or loan whenever you plan or take a trip and stretch out all the expenses for it. Online travel companies and numerous other travel-related companies either collaborate with banks, fintech companies, lending platforms, and third-party creditors, or they offer loans through their own financial sections. To benefit from the initiative, one could also speak with bankers or other third-party creditors directly. You can pay in full while booking a reservation, or you can pay in portion now and the rest within a specified period of time. You can choose to obtain interest-free EMIs or charge a rate on the borrowed funds depending on the amount of money lent and the term of the loans.
Should people choose the "travel now, pay later" scheme?
With a credit card, you receive a free 30- to 45-day credit limit, which is a little bit less time than that of the TNPL no-cost EMI timeframe. Nevertheless, it can be less costly if you split the credit card amount into installments at the rate of 12 to18%. Comparable to how a personal loan might be less costly, several banks already offer rates below 12%. A personal loan is preferable as it has a longer repayment duration and less stringent consequences for missed EMI payments. The TNPL technique is only recommended if consumers meet the requirements for a no-cost Repayment option and therefore can repay within 1-6 months, if the trip operator or financier is actually delivering more savings, if you must depart immediately, and if you subsequently realize that you are short on funds. Because traveling is a choice expense, preparing for a vacation is preferable to paying interest charges on the cost of travel.
Also read: Ways to pay off your debts!
Final words
The "travel now, pay later" option is a popular choice for young people nowadays. whereas it is only recommended for people who can pay back within one to six months. The TNPL scheme is a voluntary expense that one could opt into for urgency and payback with or without interest as per the plan chosen.
Disclaimer: This information should not be considered as investment or legal advice and is only meant to provide general information. When drawing conclusions, you must seek independent advice separately.