Travel debt has skyrocketed this summer. Global Google search for “travel loans” has skyrocketed 233% over the past month as it expands its budget to earn holidays and covers flight and hotel costs. With late summer escapes in full swing, more travelers are looking for ways to spread the cost of traveling abroad.
In 2025, one in five American travelers said they plan to use the BNPL service to pay for summer vacation. Gen Z and millennial consumers are more likely to use BNPL to buy travel.
Are you buying now or paying payment options later?
Buy Now, Pay Later (BNPL) payment options are increasing rapidly in popularity, especially in the travel industry, allowing you to split the full cost of something into small payment installments over a longer period.
Typically, BNPL options don’t charge interest on short-term loan payments, but if payments are split over a long period of time, interest rates can rise sharply, and you may be charged for missed or late payments.
But what is the risk?
Online service company Gigacalculator says that if you buy now, the options afterwards are really useful and useful, and there’s a difference between having summer vacation or not. However, it is important to practice responsible lending, thoroughly research, manage your finances, and ensure you are comfortable completing your repayment plan.
A recent report from the Consumer Finance Protection Agency found that 63% of BNPL borrowers have multiple loans at once. This is also known as “lawn stacking.”
Hidden fees also apply in BNPL. Financial Analyst points out that many BNPL payment schemes do not appear to have a fee attached to their repayments. It’s important to thoroughly investigate this and know. Many schemes sell themselves as “no fees,” but if you dig deeper you will find penalties for late payments, additional fees for longer repayment periods, and in some cases higher interest rates than traditional loans.
Nerdwallet discovered in 2024 that 30% of travelers who used their credit cards on their summer trips have not yet repaid their balances.
