Skift Take
In the past nine months, a group of relatively low-profile startups began signing up brands like Expedia and United Vacations to the concept of layaway plans for buying travel.
A wave of companies have gained traction in enabling travelers to pay for their flights, hotels, or tours in monthly installments.
The verdict is still out on whether sparing people from having to pay for travel in a lump sum or via their credit card is enough of a problem to justify a business. (Investors may question whether this is "a feature or a product.")
These startups bring up a fair point, though. While installment plans are common in many countries (especially in Latin America) for paying travel, the concept is almost unheard of in the U.S., Europe, and South Africa. In the U.S., a recent study by the consultancy Atmosphere Research Group claims that 41 percent of travelers surveyed expressed an interest in using installment payments for trips that cost $2,000 or more.
So, not surprisingly, major travel brands, such as Expedia and Golden Nugget, have begun testing these services.
Here's a look at five of these companies:
Affirm is not a travel startup. It's strictly fintech, and its signature product is enabling installment payments for a variety of products. But the company is worth noting here because, starting in summer 2016, Expedia installed Affirm's solution and offered layaway plans for hotel bookings ove
