Dubai

If you’re keen on going on a holiday but can’t pay for it in full, then don’t worry. Travel companies in the UAE are offering holiday packages that can be paid in instalments.

The instalments can be paid within six to 12 months for destinations worldwide. Travel companies said that demand for the scheme has been picking up in the UAE in recent years, especially from consumers who are tight on cash.

This is how it works. The travel companies sell the packages to the banks, which in turn deduct the due amount in instalments from the holiday-goers’ credit cards.

“People have a lot of commitments and at times have cash crunches,” said Micky Bhatia, general manager at Al Futtaim Travel.

Al Futtaim Travel has partnered with multiple UAE banks, such as Mashreq Bank and Abu Dhabi Commercial Bank (ADCB), to offer the packages to both employees of corporate organisations and anyone with a credit card at a participating bank.

He said that the scheme, which the company introduced 18 months ago, currently accounts for 6-8 per cent of its outbound business at its retail outlets, but he expects that share to double in the next 18 months.

Echoing his views is Kulwant Singh, managing director of Lama Tours, whose company introduced similar packages four years ago. He said that their contribution to revenue of outbound services has grown from 5-10 per cent four years ago to 20-25 per cent this year, driven by growing consumer demand.

Other travel companies, such as Alpha Tours, have expressed interest in introducing similar packages.

Employees of corporate organisations must be authorised by their company before they can pay for the package, explained AlFuttaim’s Bhatia.

The company has introduced packages for travel during Eid. For instance, the cost of a three-night holiday in Bangkok, inclusive of a round-trip flight, accommodation, daily breakfast, travel insurance and airport transfer, starts from Dh2,900. Customers can then pay Dh485 per month for six months.

Similarly, employees of corporate organisations can also buy a package for a three-night stay in the Far East from Lama Tours starting from Dh4,500, and pay Dh930 per month over a six-month period, with up to 4 per cent interest.

Companies can either pay Lama Tours the full price of the packages directly or pay a participating bank in instalments.

While the packages are popular throughout the year, demand for them increases from April to May and October to November, Al Futtaim’s Bhatia said.