Categories: Travel

Demand for ‘Travel Now, Pay Later’ sees 2.5x increase with youth leading the drive, ET TravelWorld

Picture used for representation.

A recent study by Fibe, India’s leading fintech company, in collaboration with travel fintech firm SanKash, has revealed a remarkable 2.5X increase in demand for the ‘Travel Now, Pay Later’ (TNPL) offering over the past year. The study highlights a significant preference among Indians for short-haul international destinations and pilgrimage sites, as well as an uptick in domestic travel.

The study identifies popular short-haul international destinations such as the UAE, Thailand, Singapore, Indonesia, Maldives, Nepal, and Vietnam, which have seen a 33 per cent increase in demand compared to last year. Pilgrimage sites like Ayodhya, Tirupati, and Shirdi have also experienced a rise in bookings, with an 11 per cent increase over the same period.

Domestic travel has witnessed a 13 per cent increase, with destinations like Goa, Rajasthan, Varanasi, Kerala, Manali, Ooty, Darjeeling, Coorg, Visakhapatnam, Pondicherry, Srinagar, Amritsar, Gangtok, and Rishikesh attracting more travelers. Notably, queries for Lakshadweep have risen by 15 per cent, while the Maldives remains a favorite among beach enthusiasts.

Youth driven demand
The surge in TNPL demand is largely driven by individuals aged 26-45 from cities such as Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Jaipur, Lucknow, Mumbai, and Pune. Interestingly, solo travellers have shown a significant preference for TNPL, highlighting the flexibility and convenience it offers.

The latest insights in the travel industry have unveiled some key trends that shed light on the preferences and behaviors of modern-day travellers. Among the top destinations in demand, Kashmir takes the lead with 30 per cent, closely followed by the North East at 26 per cent, Andaman at 22 per cent, and Kerala and Goa both at 20 per cent.

Increased average ticket size
Over the past 12 months, the average ticket size for TNPL has increased by 60 per cent. Most individuals opting for TNPL prefer to repay the total amount within six months, indicating a trend towards responsible borrowing and financial planning.Balakrishnan Narayanan, Fibe’s Head of Product & Analytics, commented, “We are witnessing an increased demand for TNPL, especially among the youth and tech-savvy individuals. At Fibe, we provide financial solutions for every need of customers and with TNPL, we want to add flexibility to their travel plans. Besides, it also adds convenience and affordability to the travel plans of individuals, allowing them to explore their dream destinations without any financial worries.”

Akash Dahiya, Co-founder & CEO, SanKash, added, “We’re thrilled to see the surge in demand for travel this year, especially with the increasing popularity of TNPL. SanKash is committed to providing seamless and affordable travel financing solutions, and we’re proud to partner with Fibe to make travel dreams a reality for more people.”