In a recent user survey, Swedish fintech company Klarna — which boasts more than 111 million active consumer users and offers flexible “buy now, pay later” purchasing options — found that many travelers are shifting their spending habits in favor of smaller and more frequent getaways (59%), rather than one larger annual trip (41%).
Respondents also report that budget matters, with 40% of travelers skipping trips if upfront costs feel too high. Paying for a trip over time with Klarna’s payment services is an attractive option; 56% of millennial respondents say they are likely to use the buy now, pay later method to purchase flights.
Our Analysis: There’s Opportunity for Travel Advisors Within This Shift
While anxiety around spending isn’t great on the surface, this study shows that travel advisors can still serve clients who can’t afford pricey, luxury getaways. While this segment of the market may be more impacted by the economy than the wealthy, these travelers are still finding ways to take vacations. Booking a greater number of less expensive trips also allows advisors to have more touchpoints with clients, and therefore more chances to connect and build long-lasting relationships.
Fast Facts: Travelers Are Willing to Try New Purchasing Options to Make a Trip Happen
- In Klarna’s survey of more than 2,000 adults, 53% of Gen Z respondents prefer smaller getaways over one large annual trip, compared to 50% of millennials, 61% of Gen X travelers and 68% of Boomers.
- Sticking to a budget is important; 94% of travelers seek clear pricing and 40% have skipped booking a trip if the cost is too high.
- Even if on a budget, travelers want to make the trip happen, and they are seeking flexible payment options in order to do so.
- Of Klarna buy now, pay later purchase program participants, 43% say that being able to make flexible payments has helped them plan and book more thoughtful trips.
- Among millennial respondents, 56% say they are likely to use a buy now, pay later option to purchase flights.
- Respondents report that the ability to spread out payments may be preferable to using a credit card that earns points.
