The demand for travel now, pay later options is on the rise among UAE travellers, particularly for those planning long-haul trips to expensive destinations. Many residents in the UAE take advantage of the long school summer break to travel abroad with their families to cooler destinations. As summer is a peak outbound travel season, airfares to popular tourist spots in Europe and the Far East are at all-time highs, prompting families to explore travel financing options available through various platforms.
Local banks in the UAE, such as Abu Dhabi Islamic Bank, Ras Al Khaimah Bank, Citibank, and others, offer travel finance options for vacations. Additionally, local airlines have collaborated with banks to allow residents to pay for their travel expenses in installments. This arrangement enables travelers to embark on their summer trips and pay back the costs over several months, with some institutions offering zero-profit credit. Shopping and financial services app Tabby has reported significant growth in sales for travel merchants over the past year, with an average order value of $300 (Dh1,300) for travel-related purchases.
Dnata Travel, a leading travel agency, has partnered with 12 local banks to provide Easy Payment Plans (EPPs) for UAE travelers. The company aims to offer customers the flexibility to travel without having to make a single upfront payment. By doubling their bank partner base in the last year, Dnata Travel is catering to the increasing popularity of such payment options, allowing customers to choose plans that suit their needs. Avinash Adnani, managing director of Neo Travels and Tourism, noted that the travel now, pay later trend is gaining traction in the industry, helping UAE residents plan vacations within their budget and financial constraints.
Adnani highlighted that many travelers are opting for longer vacations, spanning 10-15 days and encompassing multiple destinations in a single trip, which can significantly raise travel costs. In such cases, the buy now, pay later option becomes advantageous, allowing travelers to split payments into more manageable installments. For instance, travelers can add additional destinations to their itinerary and repay the costs over time. Flexible payment options provide convenience for customers booking extended stays or for those making group travel arrangements, making it a preferred choice for many travelers.
With the increasing popularity of travel financing options and buy now, pay later schemes, the travel industry in the UAE is adapting to meet the evolving needs of travelers. By offering flexible payment plans, local banks, airlines, and travel agencies are making it easier for residents to explore new destinations and plan memorable vacations without immediate financial burdens. As more travelers seek financial flexibility and convenience in their travel arrangements, the concept of travel now, pay later is becoming a prevalent trend in the UAE travel market, catering to the diverse preferences and budgets of travelers.
