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Travel companies are busy tailoring personal loans and equated monthly instalments (EMIs) to attract customers as Indians go around the world more than ever. However, the room for growth is still large, say sector executives.
“Holidays are clearly heading to a ‘non-negotiable’ level for Indian consumers, the only concern being upfront payment and more so for family travel,” says Abraham Alapatt, chief innovation officer and marketing and service quality head at Thomas Cook India. The EMI holiday option has made holiday packages more affordable, he adds.
Thomas Cook’s pilot project on travel EMIs involves a rollout in 12 cities across 50 locations.
While the trend is evident, the growth in EMI has been in single digits over the past few years, says Sharat Dhall, president, Yatra, an online travel company. “But, we are certain that it will pick up.”
As for outbound destinations, Europe, North America and New Zealand are the most popular. In India, Andaman’s, North-East, Rajasthan and Ladakh are among the top choices.
Trips are now simpler with greater financial autonomy and internet access. Flexible payment options from banks and tie-ups with both online and off-line travel agencies have also helped.
While Yatra and Thomas Cook connect their customer with banks, others travel companies such as Cox & Kings do not get involved in the financing process.
The demand for EMI in travel is not restricted to the metros. There has been a notable uptake from mini metros and tier-II and -III markets as well, says Alapatt.
Queries related to EMIs for travel are coming in from across age-groups and income levels. Working professionals, young couples, and single men and women are among those finding this option viable, says Dhall of Yatra.
As an executive puts it, buying a holiday has now become as simple as buying a smartphone.
