One of the big ticket items that many of us look at purchasing on an annual basis is a vacation. Planning for this event tends to involve a sizable financial commitment, and if there’s a chance to spread the cost over a period of time, that’s something well worth considering.
If you are buying your holiday through a supplier who has a travel agency merchant account it is very likely that they will be in a position to offer you the chance to spread the cost over a period of time, rather than having to find the full amount in one hit.
Not surprisingly, these payment plans are very popular. Here’s how they work.
A range of options
A key point to make about the concept of travel payment plans is that they are very easy to understand and use. They also offer a high degree of flexibility, which means that you can often find a deal that suits your finances.
In general terms, what happens is that you choose a vacation package and ask the travel agency to give you a quote. Once you are happy with the cost and want to go ahead with a booking, it is likely that you will be asked to pay a deposit to secure the deal. The remaining balance and the timeframe for paying the total cost of your package is something that can then be discussed and agreed with your travel agent.
You may be offered the option of paying fixed monthly installments, or to pay what you owe at convenient intervals. There is often a high degree of flexibility in these payment plans.
It all depends on how long you have before the date of the trip. If you are planning well in advance of your intended travel date this will give you the greatest amount of payment options.
Understanding the costs
A large percentage of travel agencies tend to offer payment plans at no extra cost, but terms and conditions will vary and you should check to see if there are any administrative or interest charges added to the total you are being asked to pay for your vacation installment plan.
When a payment plan might be offered
It is likely that you will only be offered a payment plan when your intended travel date is at least 90 days away. If you are booking a vacation that has a timeline for departure of less than 60 days, the full balance will usually be requested at the time of booking.
Planning ahead for your vacation and using a payment plan allows you to budget your finances in a more structured way. It also means that you have the opportunity to book a more luxurious vacation package because you have the option to spread the cost over a period of time.
As you can see, there are many compelling advantages attached to using a payment plan when booking a vacation. They are a simple and cost-effective way to ease the strain on your finances and allow you to make some great travel plans.
