How Travel Websites Are Using Reserve Now, Pay Later
Why It Matters to Travel Brands
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With the rise of the sharing economy, consumers are increasingly looking for ways to finance their purchases over time. This trend has led to the emergence of "reserve now, pay later" (RNPL) services, which allow consumers to book a trip or experience now and pay for it in installments.
Benefits to Travel Brands
- Increased bookings: RNPL can help travel brands increase bookings by making travel more affordable for consumers.
- Improved customer satisfaction: RNPL can improve customer satisfaction by giving consumers more flexibility and control over their finances.
- Reduced risk: RNPL can reduce the risk of cancellations and no-shows by giving consumers a financial incentive to complete their purchase.
Considerations for Travel Brands
- Fees and interest: RNPL services typically charge fees and interest, which can add to the cost of a trip.
- Consumer credit: RNPL services may check a consumer's credit score before approving a loan, which could affect their ability to book a trip.
- Competition: There are a number of RNPL providers in the market, so travel brands need to carefully compare offerings before selecting a partner.
How Travel Websites Are Using RNPL
A number of travel websites are now offering RNPL options to their customers. Some of the most popular include:
- Airbnb: Airbnb offers a "Pay Later" option that allows guests to book a stay and pay for it in installments.
- Booking.com: Booking.com offers a "Pay Later" option that allows guests to book a hotel stay and pay for it in installments.
- Expedia: Expedia offers a "Pay Monthly" option that allows customers to book a flight or hotel stay and pay for it in monthly installments.
The Future of RNPL in Travel
RNPL is a growing trend in the travel industry. As more consumers look for ways to finance their purchases over time, travel brands are likely to offer more RNPL options.
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