Buy Now, Pay Later (BNPL) is a contemporary payment mechanism that helps customers purchase a wide range of products or services. The advantages of BNPL services are countless, as travel companies can use them in their favor. This way, they can easily delight their current and potential customers in the right direction.
This blog post will explain how BNPL services can transform the travel industry and help travel enthusiasts realize their traveling dreams.
What is Buy Now, Pay Later?
Buy Now, Pay Later (BNPL) is an emerging financing option that allows customers to buy their desired products or services hassle-free.
In addition to this, they can pay the remaining dues using convenient installments over time.
Luckily, they do not have to pay interest charges if they regularly make payments.
Advantages of BNPL in the Travel Industry
Buy now, pay later offers various benefits to businesses explicitly operating in the travel industry. Here are some key benefits businesses or companies can get from their existing and new customers:
- The BNPL (Buy Now, Pay Later) option offers financial security to businesses since they receive the first payment of the whole amount immediately. Likewise, customers are supposed to pay their remaining dues in monthly installments, meaning businesses will not be affected even if their customers make payments over time.
- When customers make payments via installments, businesses can easily upsell to them. For instance, customers can upgrade their hotels from 4-star to 5-star, depending on their needs. Similarly, they can consider getting other add-ons like upgrading their existing rooms from ordinary to business class. Companies will likely benefit from customers willing to pay more for additional services.
- BNPL services provide a wide range of payment options to customers. Thus, they are more inclined to avail their services when buying different commodities tailored to their needs.
- Travel businesses can significantly expand their customer base as BNPL options help them make travel plans even if they do not have the budget.
Buy Now, Pay Later is Transforming the Travel Industry
According to Digitrips, a prominent multi-product travel company, Buy Now, Pay Later (BNPL), a notable financing option, has all the ingredients to revolutionize the travel e-commerce industry.
Fortunately, BNPL purchases have increased their overall sales drastically. These purchases currently make up 75% of Digitrips’s B2B2C sales.
The company has a massive presence in different European countries. That’s because Digitrips offers its services across Europe via 65 white-label storefronts for e-commerce businesses. Interestingly, most such storefronts cater to customers’ needs through BNPL. This incredible financing option enables consumers to purchase various products according to their budget.
Emilie Dumont, CEO of Digitrips, revealed that BNPL purchases have been vital in promoting their services. Moreover, the BNPL option has dramatically helped their white-label partners make travel affordable and enjoyable for customers.
Due to that reason, customers have started preferring BNPL services over other services as they allow them to pay their dues every month.
The above scenario indicates that the BNPL mechanism provides payment flexibility to consumers. This is an excellent sign for the travel and tourism industry because it increases the demand for travel to new heights.
Prime Example Of Travel Companies Opting For BNPL
Play Airlines is moving upward as the leading airline finally offers its customers the BNPL (Buy Now, Pay Later) option. By partnering with Uplift, Play has tried to provide ample opportunities to travelers.
According to the CCO (Chief Commercial Officer) of Play, Sonja Arnorsdottir
“At PLAY, we focus on simplicity, low prices, and happiness, which is why we felt it was important to offer our passengers the ability to pay for their flights on their time frame.”
“We offer the ability to customize their journey by choosing to add only those additional services they want, such as baggage and seats. The Uplift Buy Now Pay Later solution allows our passengers to pay for their flights according to their preferences”.
In response, the Chief Commercial Officer of Uplift, Tom Botts, said,
“We are excited to welcome PLAY to the Uplift family. We share a similar vision and values as both companies are committed to making air travel more accessible and affordable to consumers. This partnership will now make it possible for budget-conscious travelers to make European vacation dreams a reality, including the incredible destination that is Iceland.”
Uplift has already collaborated with 300+ airlines, resorts, cruise lines, and other travel providers to support traveling worldwide. When you use the Uplift BNPL option, you do not need to pay any late fees or penalties.
In short, you can create your payment plan if you are unwilling to pay the total amount of your chosen product upfront.
If you manage your traveling agency and offer customers the BNPL (Buy Now, Pay Later) option, you can take advantage of the Payment Plans WC plugin.
This plugin allows you to add payment plans to customers’ tickets. Furthermore, the plugin automatically charges their payment method whenever a payment is due.
BNPL options are indeed a blessing in disguise for travel businesses. Luckily, they can reap various rewards provided they appropriately grab the attention of existing and potential customers. They can improve their customer base as BNPL options allow customers to buy traveling products without stretching their budget.
The future of the travel industry looks optimistic and rewarding. Travel companies can enhance their net revenues considerably as BNPL services let them increase their customer base.
Customers will likely make the most of BNPL services in the future as they can turn their dreams into realities. In addition, they can visit their preferred destinations worldwide without compromising their peace of mind.