Youth Propel 2.5x Surge In 'Travel Now, Pay Later' Demand

EE News Desk Jun 22, 2024

The surge in demand for TNPL is predominantly driven by individuals aged 26-45 from cities like Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Jaipur, Lucknow, Mumbai, and Pune

Media reports suggest that a recent study conducted by Fibe, India's leading fintech company, in collaboration with travel fintech firm SanKash, has revealed a remarkable 2.5-fold increase in demand for the 'Travel Now, Pay Later' (TNPL) option over the past year. The study highlights a significant preference among Indians for short-haul international destinations and pilgrimage sites, along with 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 an 11 per cent increase in bookings over the same period.

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

Youth-fueled surge

The surge in demand for TNPL is predominantly driven by individuals aged 26-45 from cities like Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Jaipur, Lucknow, Mumbai, and Pune. Notably, solo travellers have shown a marked preference for TNPL, emphasising its flexibility and convenience.

Thomas Cook & SOTC have surpassed last year's total domestic travel numbers within just the first six months of this year.

Recent insights in the travel industry have highlighted key trends reflecting the preferences and behaviours of contemporary travellers. Among the top destinations in demand, Kashmir leads with 30 per cent, followed closely by the North East at 26 per cent, Andaman at 22 per cent, and both Kerala and Goa at 20 per cent.

Growth in Average Ticket Size

Over the past year, the average ticket size for TNPL has risen by 60 per cent. Most individuals choosing TNPL prefer to repay the full amount within six months, reflecting a trend toward responsible borrowing and financial planning.

Balakrishnan Narayanan, Fibe’s Head of Product & Analytics, pointed out, "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, mentioned, "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."