'Stay now, pay later'

Don't ditch the holiday safety net of a credit card

- Sarah Marsh

People are missing out on vital protections by using “buy now, pay later” instead of credit cards to pay for holidays, experts warn.

BNPL has grown massively in recent years, and holiday firms and hotel chains have been adding the option when booking online, saying it can make trips more attainable.

“Stay now, pay later” is the new slogan from the budget hotel chain Travelodge, which recently announced that guests can use Klarna, Clearpay or PayPal - the three companies that dominate the BNPL market in the UK.

Similarly, travel agents and flight booking sites are offering it under the banner “fly now pay later”.

And Airbnb announced in late 2023 it was teaming up with Klarna in the UK so guests could spread the cost of stays over weeks, or even months. The service is available for reservations priced between £35 and £4,000.

Data issued this week showed searches on Google for phrases such as “buy now pay later flights” and “buy now pay later hotels” are up sharply on earlier this year, suggesting people are looking for ways to book more flexibly.