The buy now-pay later provider and the travel booking company are teaming up to allow consumers to spread out payments for flights and hotels
After taking off in retail, BNPL has expanded into areas such as travel, events and healthcare. The ability to spread out payments for travel bookings may hold appeal for consumers who are financially stressed by rising inflation and holiday shopping expenses.
Expedia Group is the parent company for online travel agencies Expedia, Hotels.com, Vrbo, trivago, Orbitz and Travelocity, among other brands.
The BNPL provider discovered earlier this year that consumers planned to increase spending in travel and experiences and sought out a travel provider to partner with, Modern Retail reported.
“This highlights our ongoing growth in developing cutting-edge traveler technologies that provide our partners with new ways to deliver great experiences to their customers which, in turn, drive customer loyalty,” Christian Gerron, senior vice president of media and brand partnerships for Expedia Group, said in the release.
It’s not the first BNPL partnership for Expedia: The travel company linked with Afterpay rival Klarna in 2019, to offer installment payments for Expedia.com and Hotels.com customers, PYMNTS reported. BNPL provider Affirm and travel-focused BNPL company Uplift are among the others offering installment payments in the travel market.
Pent-up demand for travel following the COVID-19 pandemic persists, as yearend holiday travel is also getting underway. Airline and lodging sales on Black Friday are expected to increase by double-digit percentages compared to last year, Mastercard said last week.
By Caitlin Mullen on Nov 22, 2022
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