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Global Travel Now Pay Later Market Size To Exceed USD 103.5 Billion by 2032

REPORTS TOURISM

According to a research report published by Spherical Insights & Consulting, the Global Travel Now Pay Later Market Size is to grow from USD 45.6 Billion in 2022 to USD 103.5 Billion by 2032, at a Compound Annual Growth Rate (CAGR) of 8.6% during projected period.

Travel now pay later services are financing options that enable travelers to book and pay for their trips over time, rather than all at once. These have become increasingly popular in recent years as they make traveling more accessible for those who may not have the capacity to cover all costs at once.

Through the use of financing solutions like travel now pay later, travelers can plan and pay for their vacations in installments rather than all at once. These have become more common recently since they help people who might not be able to pay for all of their travel bills at once to do so. Several enterprises, including airlines, hotels, and third-party firms that specialize in travel financing, provide book services now and pay later for travel. Travel can be costly, but financing solutions like travel now and pay later services help many people make it more reasonable so they can go more frequently or to more expensive places. Due to the growth of online payment systems like PayPal and Klarna, consumers now have easier access to financing solutions for travel-related purchases. Fintech firms are taking advantage of technology by offering creative financial solutions like travel loans and installment contracts. As the global middle class continues to expand and more people travel than ever before, there is also an increasing demand for travel now pay later services. Since many travel now pay later firms to impose high interest rates and fees, consumers’ travel expenses rise. These costs might deter some individuals, leading them to choose for alternative payment methods. Travel now, pay later providers frequently ask customers to do a credit check before the approval of financing. Individuals with poor credit may not be eligible for these options, which restricts the market’s potential size.

COVID-19 Impact

The travel now pay later services sector was unaffected by the COVID-19 pandemic. Travel was dropped significantly as a result of travel restrictions and border closures in numerous nations. Traveling had became rather difficult as a result of the pandemic due to the strict lockdowns in place everywhere. The pandemic had put a lot of people under financial difficulty, which significantly increased cancellations and refunds, which might be expensive for businesses that provide travel no, pay later services. There was increase in defaults on travel now pay later services as a result of the difficulties this crisis was caused for many. Companies that operate in the market had suffered more losses as a result.

The leisure segment dominates the market with the largest revenue share over the forecast period

The global market for travel now pay later is divided into categories for leisure, business, adventure, family travel, and other travel. With the highest revenue share of 38.6% during the anticipated period, the leisure segment is leading the market. Leisure travel includes trips like holidays, weekend getaways, family vacations, and solo adventures. It might also include specialized forms of travel, such as cultural and adventurous travel. A variety of age groups, lifestyles, and budgetary restrictions are taken into account while planning travel for enjoyment. It typically results from personal interests, hobbies, and preferences.

The International segment is witnessing significant CAGR growth over the forecast period

The global travel-now-pay-later market is divided into domestic and foreign segments based on destination. Among them, the overseas segment is expected to experience a considerable CAGR increase. International travel, which has a substantial impact on sectors like tourism, aviation, and hospitality, is essential to the existence of the global economy. Furthermore, it is anticipated that the domestic market will have a revenue share of over 35.8%. Domestic travel is essential for enhancing local tourism and supporting the community’s economy.

The installment plan segment is expected to hold the largest share of the global travel now pay later Market during the forecast period

The global travel now pay later travel market is divided into three categories based on payment plans: installment plans, deferred payments, and others. During the projection period, the installment plan category is anticipated to hold the greatest share of the travel-now, pay-later market. “Installment plans” are financial arrangements that permit customers to pay their expenses over time in installments as opposed to all at once in the travel and tourism sectors. Installment plans can help travel companies increase sales and profits by making goods and services more accessible to a wider range of customers. Deferred payment plans frequently require an upfront amount deposit and a future date for the remainder.

The travel agencies segment accounted revenue share of more than 57.2% over the forecast period

The global travel now pay later market is divided into travel agencies, airlines, hotels, tour operators, and others based on the distribution channel. Throughout the forecast period, the travel agencies sector will continue to rule the market with the biggest revenue share. Travel agencies are businesses that specialize in offering clients services related to travel, such as advice and suggestions, reservations, insurance, documentation, and package deals. However, airlines play a significant role in the travel and tourism industry as they offer transportation to bring visitors to their desired locations and are also anticipated to grow at a steady CAGR over the projected period.

North America dominates the market with the largest market share over the forecast period

North America is dominating the market with more than 38.7% market share over the forecast period. In North America, fintech companies are using technology to offer creative financial solutions, such as travel loans and installment plans. This is due in part to the high standard of living in North America as well as the availability of direct booking options and online travel agencies. The market for travel-now and pay-later services is anticipated to grow as a result. The Asia-Pacific market is anticipated to increase at a significant CAGR over the anticipated period. The use of digital payments has increased in the area, making it easier for people to use travel now, and pay later services. The Asia Pacific region’s growing tourist industry makes the travel now, pay later strategy a natural fit for this market. In Europe, where many vendors provide flexible payment alternatives for reservations, travel now, pay later services are common. This tendency is especially prevalent in the UK, where booking flights and vacation packages using deferred payment plans is common.

Major vendors in the Global Travel Now Pay Later Market include Afterpay, PayPal Holdings, Inc., Splitit, Sezzle, Perpay Inc., Openpay, Quadpay, Inc., LatitudePay, and among others.

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