A recent Travel News poll and industry insiders have highlighted a growing interest in Buy Now, Pay Later (BNPL) options in travel.
According to the poll, 29% of respondents had seen an increase in traveller requests for BNPL options, highlighting a shift towards greater financial flexibility.
Appeals to certain travellers
The trend is particularly noticeable among younger travellers. Darsha Soobramoney, Marketing and Events Manager of The Travel Corporation South Africa, admits that, while 29% of respondents are not the majority, “it definitely signals a shift in how people are thinking about travel, especially younger travellers who want flexibility when planning their trips”.
Contiki, a brand focusing on younger travellers, has already seen the benefits of flexible payment options.
“At Contiki, we have seen a strong response to our ‘Part Pay’ option. It’s made travel feel more accessible, particularly for Gen Z and Millennials who are eager to explore but also mindful of budgeting. We’ve noticed that adventure travellers and budget-conscious explorers make the most use of it,” says Soobramoney.
“Contiki has actually offered flexible payment options for a while now, but we keep refining them to meet travellers where they’re at. It’s all about making travel feel possible, not overwhelming.”
Different models
Not all BNPL options follow the same model. Rennies BCD Travel has taken a different approach with its ‘Vacay Layaway’ initiative.
CEO Reece Oakes explains: “BNPL schemes are not new, but there has been a revival from 2023. From a South African travel perspective, we must highlight that our solution is not a traditional buy-now-pay-later scheme. We have taken a different direction with buy-now and travel-later by providing a platform that enables travellers to create a dedicated travel stash for their dream holidays.”
With South Africa facing a major debt crisis, Vacay Layaway aims to offer a more sustainable alternative.
“In a market already saturated with debt, our solution aims to create a platform to travel responsibly. The statistics are staggering in South Africa, with more than 10 million citizens more than three months behind on their payments, adversely listed, or facing judgements, travel has become an unattainable service.”
Despite launching only in January 2025, the response to Vacay Layaway has been positive.
“The uptake has been incredible, with clients creating their travel stashes for a range of reasons: honeymoon gifts, housekeeper travel funds and friends and family trips,” Oakes says.
Opportunities and challenges
Mikha'il Ernest, Group Chief Commercial Officer at Travelstart, acknowledges the potential and hurdles of BNPL options.
“At Travelstart, we’ve seen how BNPL is rapidly gaining traction across e-commerce, and travel is no exception. It has unlocked new opportunities for travellers, allowing them to spread costs over time without the burden of traditional credit or high-interest fees,” Ernest told Travel News.
However, he notes that the industry still faces barriers to widespread adoption.
“BNPL has massive potential in travel, but its success hinges on a few key areas. Right now, approval rates for travel are lower, primarily as the product caters more towards high-frequency, low-basket items. If we want higher conversion rates and broader accessibility, we need to address these gaps – better risk models, clearer communication, and a more seamless in-flow experience.”
Looking forward, Ernest believes BNPL must evolve: “BNPL isn’t a nice-to-have any more – it’s becoming a standard expectation.”
