Firms, banks tie up to finance tours abroad

With an expected boom in the tourism industry this year various travel companies have tied up with banks to finance holidays abroad. Tourism was severely hit in 2003 after the SARS outbreak and the Guft War.

Thomas Cook has tied up with Citibank, SOTC has tied up with Kotak Mahindra Bank, while Cox and Kings has tied up with UTI Bank and Citibank for financing tours abroad.

"All our the tour packages offer the option to 'holiday now, pay later' where customers are provided the convenience of paying for their holidays in easy monthly installments. They can enjoy the vacation of a lifetime without having to wait a lifetime for it," said Mahesh Shirodkar, chief operating officer, SOTC.

"However, till date, customers booking with SOTC Gurjar Vishwadarshan have not chosen to avail of this facility," said Shirodkar.

The SOTC's 18-day Enchanting Europe tour costs around Rs 1,50,000 per adult person on a twin sharing basis and can be repaid in EMIs (equated monthly installments) of Rs 5,235 for 36 months. The special rate for a child below 12 years, sharing parents room, is around Rs 1,10,000 (EMI of Rs 3839).

The tour price includes the cost of a round trip, economy class air fare valid for the duration of the tour, services of SOTC tour manager or local representative, meals, coach tours, transfers, entrance fees, sight seeing and surface transportation, cost of visas to participate in the tour, airport taxes as per routing of the tour and the cost of the mediclaim insurance policy valid for the tour.

"Tourist can avail the convenient finance schemes from City Bank while booking holidays with Thomas Cook. All he needs is to pay up-front is a booking deposit of Rs 10,000 and the rest is financed by the bank and to be repaid in easy monthly installments," said an official of Thomas Cook.

Thomas Cook offers European Extravaganza tour of 17 days costing around Rs 1,50,000 for adult and around Rs 92,000 for children. These have EMIs of Rs 5,200 for adults and Rs 3184 for children for 36 months. The interest rate works out to be around nine per cent at flat rate per annum.

The tour price has been calculated based on tour cost for passengers flying from Mumbai and the EMIs are calculated under the normal scheme for a tenure of 36 months and are based on the cost per person on a twin sharing basis, and a child without bed, below 12 years, stated the official.

While Cox and Kings has tied up with UTI Bank and Citi Bank for financing its over seas tours. Cox and Kings 19 days European Splendours tour costs around Rs 1,25,000 for adult and can be repaid in equated monthly installment of Rs 4334 for 36 months, while it costs Rs 56,000 for children and the can be repaid with EMI of Rs 2288 for 36 months.

"We have been receiving a lot of enquiries for availing the finance option. The European Splendour tour covers 11 countries of Europe including Scotland, which no other company offers. One can avail full tour price from the bank as holiday loan," said Sanjeev Chhajer, vice-president, Cox and Kings.