Tour operators introduce ‘Holiday-Now-Pay-Later’ schemes for women travellers

In celebration of International Women’s Day on March 8, various tour operators, including Veena World, Thomas Cook, Kesari Tours, and Wander Womaniya, are enticing women travellers with exclusive tour packages and innovative financing options. 

These options allow travelers to enjoy their vacations now and pay for them later through equated monthly installments (EMIs), typically spanning 12 to 36 months. However, the question arises: are these schemes worth considering? Eligible travellers, possessing a solid credit history, can take advantage of these ‘Holiday-Now-Pay-Later’ offers. 

Fintech lenders and non-banking finance companies (NBFCs) associated with travel firms evaluate the creditworthiness of applicants. To initiate the process, travellers generally pay a 15-20 percent upfront cost of the holiday package. The remaining balance is settled after returning from the vacation.

The key factor to consider is that ‘Holiday-Now-Pay-Later’ operates as an unsecured loan product, subjecting travelers to interest rates ranging from 20-30 percent per annum. Opting for EMI payments incurs additional interest charges. While settling the remaining amount in a lump sum after the holiday can be interest-free, defaulting on EMIs can adversely impact the traveler’s credit score. 

A lowered credit score may affect future loan applications, potentially leading to less favorable interest rates. As women travellers explore these enticing offers, it is essential to weigh the advantages against the potential downsides and make an informed decision based on individual financial circumstances.