In June 2024, a groundbreaking study by Fibe, India’s leading fintech, in collaboration with travel fintech firm SanKash, reported a remarkable 2.5X increase in the demand for their ‘Travel Now, Pay Later’ (TNPL) offering over the past year. This surge highlights a significant shift in travel financing preferences, especially among millennials and Gen Z.
Popular Destinations and Travel Trends
Short-haul international destinations such as the UAE, Thailand, Singapore, Indonesia, Maldives, Nepal, and Vietnam have emerged as top choices, witnessing a 33% increase in demand compared to last year. Additionally, pilgrimage sites like Ayodhya, Tirupati, and Shirdi have seen an 11% uptick in bookings, reflecting various travel interests among Indians.
Domestic travel has also seen a substantial rise, with a 13% increase in bookings. Popular destinations include Goa, Rajasthan, Varanasi, Kerala, Manali, Ooty, Darjeeling, Coorg, Visakhapatnam, Pondicherry, Srinagar, Amritsar, Gangtok, and Rishikesh. Notably, queries for Lakshadweep surged by 15%, while the Maldives continues to be a favourite for beach enthusiasts.
The Growing Popularity of TNPL
The growing popularity of travel financing solutions like TNPL underscores a broader trend: the desire among youth to manage their finances effectively while not deferring travel plans due to financial constraints. The demand for TNPL is particularly high among individuals aged 26-45, especially in cities such as Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Jaipur, Lucknow, Mumbai, and Pune.
Solo Travellers Leading the Charge
Interestingly, solo travellers have been the primary drivers of this trend, showcasing how TNPL caters to evolving customer needs by adding convenience and flexibility to travel plans. The average ticket size for TNPL has increased by 60% over the last year, with most individuals preferring to repay the total amount within six months.
Expert Insights
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 our customers, and with TNPL, we aim to add flexibility to their travel plans. This solution adds convenience and makes travel more affordable, allowing individuals to explore their dream destinations without financial worries.”
Akash Dahiya, Co-founder & CEO of SanKash, expressed his enthusiasm, saying, “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.”
About Fibe
Formerly known as EarlySalary, Fibe is a leading consumer lending app in India, focused on young, aspirational, and tech-savvy consumers. It offers a range of financial products, including Cash Loans, long-term Personal Loans, and Buy Now Pay Later plans. The company boasts a 100% digital loan application process that can be completed in seconds.
Fibe has partnered with Axis Bank to launch the Fibe Axis Bank Credit Card, India’s first numberless metal credit card, providing high security and reducing the risk of misuse. With a scalable business model, Fibe has received a BBB+ rating from CARE Ratings and ISO/IEC 2001 certification for its Information Security Management System (ISMS). The company has disbursed over 5.7 million loans worth more than Rs. 18,300 crore.
About SanKash
SanKash is a leading travel fintech platform, empowering travel agents and travellers with a wide range of flexible payment options, competitive forex rates, and diverse insurance plans. The company aims to make travel planning smoother and more affordable for everyone.
Conclusion
The increasing demand for ‘Travel Now, Pay Later’ options reflects a broader trend of financial innovation and consumer empowerment in the travel sector. With Fibe and SanKash leading the charge, more individuals can now explore their dream destinations without financial worries, making travel more accessible and enjoyable.
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