Do you want to loan-a-holiday?

EMI option for travel is becoming increasingly common

Planning an holiday but don't have the funds? You could opt for the EMI option, which is increasingly becoming common in the travel and tourism industry.

 

"Yes, it certainly has become much more common. Holidays are clearly 'non-negotiable' for Indian consumers, the only problem being upfront payment and more so for family travel. The EMI holiday option has created an impactful affordability," said Abraham Alapatt, Chief Innovation Officer and Marketing & Service Quality Head, Thomas Cook (India) Ltd.

 

Yatra.com president Sharat Dhall said that the trend has seen single-digit growth over the last few years, but is likely to pick up.   

 

On the destination front, customers generally gravitate towards international packages of Europe, North America and New Zealand. On the domestic front, the Andamans, the North-East, Rajasthan and Ladakh are seemingly popular choices.

 

Flexible payment options from banks and tie-ups with both online and offline travel agencies have encouraged this trend further. While online travel agency Yatra and Thomas Cook connect their customer with banks and take care of all formalities, Cox & Kings "lets the customer directly contact the bank".

 

The demand to utilise the EMI option for travel is not restricted to just the metro markets. "We have also observed that there has been an interesting uptake from mini metros and the regional tier II & III markets," Alapatt adds.

 

The queries coming in about this option is also spread across demographics and age groups and salary ranges. From business families to single men and women, the profile of interested parties is quite divergent.

 

"We have typically seen working professionals who have time constraints and restrictions on leave looking for this option. Young couples and groups of single men and women also find this option very viable," Dhall states.

 

While the approbation of the travel loan depends on the credit-worthiness and history of the customer, buying a holiday today has become as simple as buying a smartphone, if Thomas Cook is to be believed.