South African consumers will soon be able to take a loan to book their next vacation.
Travelfin – a new point-of-sale financing option for travellers to book their holiday and pay it off over a period of 12 to 24 months – promises to open new markets for those selling travel, and assist agents in securing more prepaid bookings. Finance will be advanced through Capitec Bank.
The product’s founders, Frikkie Reynders (of inbound tour operator Highline Tours) and Andre Fourie (of FinYou), say it will be a tool that agents can offer their clients and assist them in making the sale “there and then”.
Frikkie says the biggest advantage of Travelfin is that the transaction can happen well in advance of the travel date even if the client doesn’t have the cash available, which fixes the exchange rate and prevents the cost from escalating due to rate fluctuation or additional flight costs. “For example, the client might get a bonus in December and want to travel then, but now they can book it in February already to take advantage of early-bird discounts and avoid the last-minute rush. Travelfin is an extra tool to plan holidays better and fix the price,” he says.
Read the full story in TNW March 26
