Monday, December 11, 2023
World Travel and Trip Market is poised for substantial growth, expected to increase from USD 45.6 Billion in 2022 to USD 103.5 Billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 8.6% throughout the forecast period. Travel now pay later services offer financing solutions that empower travelers to book and pay for their journeys incrementally, making travel more accessible for individuals unable to cover all expenses at once.
To cater to the rising demand, various enterprises, including airlines, hotels, and specialized third-party firms in travel financing, provide book now pay later services. These financial alternatives allow individuals to plan and pay for vacations in installments, a particularly attractive option for those facing budget constraints. The surge in popularity of online payment systems like PayPal and Klarna has further facilitated access to travel financing solutions.
Despite the convenience, it’s important to note that many travel now pay later firms impose high interest rates and fees, potentially deterring some consumers. Additionally, individuals with poor credit may face eligibility challenges, limiting the market’s potential size.
The COVID-19 pandemic had a notable impact on the sector, causing a significant drop in travel due to restrictions and lockdowns. Financial difficulties resulting from the pandemic led to increased cancellations and defaults on travel now pay later services, contributing to losses for businesses operating in this market.
Key industry insights reveal that the leisure segment dominates the market, representing the largest revenue share during the forecast period. International travel is expected to witness significant growth, playing a crucial role in sectors like tourism, aviation, and hospitality. Installment plans are anticipated to hold the largest share in the payment plan category, providing customers with the flexibility to pay for travel expenses over time.
In terms of distribution channels, travel agencies lead the market, accounting for over 57.2% of revenue share. Regionally, North America dominates the market, driven by fintech companies offering innovative financial solutions and the high standard of living in the region. The Asia-Pacific market is expected to experience significant growth due to increased digital payments and the region’s expanding tourist industry.
Major players in the Global Travel Now Pay Later Market include Afterpay, PayPal Holdings, Inc., Splitit, Sezzle, Perpay Inc., Openpay, Quadpay, Inc., LatitudePay, among others. Recent developments indicate ongoing efforts to expand into untapped verticals, such as Splitit’s private placement funding to support growth.
For a comprehensive analysis of the market, including detailed insights, market data tables, figures, and charts, refer to the full report.
Tags: cagr, Global Travel and Trip, north america
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