Travelers initially found the option of paying for trips in installments attractive due to the flexibility and ease of planning travel and vacations. However, their practical experiences revealed unexpected financial challenges. These challenges stemmed from overlapping installment payments with monthly commitments and the emergence of additional fees when modifying or canceling bookings, which led some to feel financial pressure and reassess the viability of relying on such travel products in the future.
Travelers shared their personal experiences with 'Emirates Today,' noting that the demand for this option is often driven by income stability, a desire to take advantage of travel deals, and the wish to save cash for holiday expenses. They explained that changes in financial circumstances or inaccurate calculation of subsequent expenses can turn the experience from a comfortable solution into a long-term burden. They emphasized that prior planning and a clear repayment schedule are essential factors to avoid financial strain after the trip ends.
On the other hand, travel and economics experts reported that the demand for installment travel plans is currently showing significant growth, especially among young travelers and middle-income individuals, fueled by the emergence of many new financial products in the market. They explained to 'Emirates Today' that the concept of installment travel may not be suitable for all travelers, warning that despite travel being a means of relaxation and leisure, it can become a financial burden for some. They stressed the importance of balancing the desire to travel with financial capacity, urging travelers to make informed decisions that ensure a comfortable travel experience without negatively impacting their long-term financial stability. They also advised against traveling on credit or accumulating debt due to the deferred risks known in economics as 'cumulative risks,' which contribute to poor long-term financial planning.
Banks operating in the local market, along with financial companies and travel apps, offer numerous products that allow customers to book trips and vacations with an installment payment feature, spreading the cost over fixed installments from three to six months. Some products set a minimum spending threshold as a condition for the installment offer, along with subscription and processing fees. The one-time processing fee typically ranges from 1% to 2% of the total amount, depending on the chosen financial product, or a fixed amount is set. In case of failure to pay on time, a late fee is charged according to the service provider.
"I decided to travel with my family using the installment option, as the financial situation was stable at the time, and I had the ability to pay later," said traveler Umm Ahmad. "However, after we returned from the trip, a family member had a sudden medical emergency, which imposed unexpected treatment costs on us." She added: "At that moment, the installments I had planned to pay on time became an additional burden, and I had to postpone a financial payment, which caused me financial pressure for some time." Umm Ahmad confirmed that she would not repeat this experience again, no matter how attractive the offers and incentives related to the holiday payment mechanism are. Instead, she will travel when she has the full amount allocated for the vacation without resorting to travel products that allow for deferred payment.
Traveler Omar Khalil shared his experience with installment payments, saying: "My wife and I agreed after determining the destination and preparing an estimated budget that a portion of the holiday costs would be paid in installments. This was after we followed many offers posted on social media. We bought flight tickets on an installment plan through a travel app that offers this feature, thus paying the initial installment of the total ticket amount, with the rest to be paid in three subsequent installments." He added: "The idea was primarily to save as much cash as possible for other travel expenses, so the idea seemed acceptable. We even added hotel accommodations to it. The total value of the tickets exceeded 6,000 dirhams, and splitting the amount over four installments meant paying only 1,500 dirhams as an initial payment, with the rest spread over three other months. The same applied to the hotels, as the idea of installments encouraged us to choose five-star hotels."
He continued: "The problem started after returning from the vacation when the monthly payment deadlines arrived. As I had made modifications to the pre-booked travel itinerary due to delays in obtaining an entry visa for an Asian country, this led to another issue related to modification or cancellation fees. This constituted a financial loss in the value of the tickets, in addition to paying modification and cancellation fees to the app itself." Omar Khalil said: "The idea of traveling in installments may be tempting and attractive at first, but it is financially burdensome if any changes are made to the travel itinerary or if confirmed and pre-paid hotel bookings are canceled through installment apps." He added: "I will think more than once in the future not to fall into the same financial mistake."
"My job makes my income fluctuate from month to month, but despite that, I decided to use the pay-later feature to book a vacation, hoping my income would improve later due to my work," said traveler Bashar Suleiman. "However, the following months were not good for me." He added: "With the accumulation of installments and daily commitments, I started to suffer financial pressure and felt for a time that I had lost control of my budget due to a hasty decision." He pointed out that he was able to repay the installments later but does not recommend repeating the experience, especially for those who cannot bear the financial burden later.
Traveler Ahmad Salem said he had traveled several times to keep up with the 'travel trend' during short weekend getaways, noting that he used the pay-later feature in close periods and did not notice that the installments would overlap with other financial commitments, causing him confusion. He confirmed that this affected his ability to save. He added: "It is an advantage for travelers who can control their budgets, but a financial burden for others."
Traveler Iman Saeed said she did not calculate things accurately before traveling and did not set a clear repayment plan. She said: "I came out of this experience with a lesson that the pleasure of travel increases only if you have the money you spend, not money you borrow."
In turn, CEO of 'Al Rais Travel Group — Al Rais Group,' Mohammed Jasim Al Rais, said: "The demand for installment travel plans is currently showing significant growth, driven by the emergence of many new financial products in the market that allow customers to choose installment payments for travel costs through third parties." He added in an interview with 'Emirates Today': "I do not encourage this type of plan." He pointed out that his company does not provide the 'travel in installments' feature directly, but customers wishing to travel with the company and who have installment arrangements with other entities can benefit from them without any obstacles.
Al Rais confirmed that the concept of installment travel may not be suitable for all travelers, noting that travel and tourism are luxuries, not necessities, and therefore their costs should be handled with caution and financial responsibility. He continued: "It is better for those who cannot afford travel expenses to wait and plan to travel at a time when their financial capabilities allow, rather than resorting to solutions that may impose additional financial obligations on them." He explained that some travelers, especially those who travel multiple times a year and follow travel trends and fads, may not have clear savings plans, making the installment option unsuitable for them. He confirmed that this model cannot be generalized to everyone.
Al Rais warned that despite travel being a means of relaxation and leisure, it can turn into a financial burden for some individuals, especially those facing financial difficulties, as they may find themselves facing obligations and debts that are difficult to repay in the future. He stressed the importance of balancing the desire to travel with financial capacity. He called on travelers to make informed decisions that ensure a comfortable travel experience without negatively impacting their long-term financial stability.
CEO of 'Dubai World Travel,' Badar Ahli, said there is a noticeable trend towards flexible payment solutions, including 'travel in installments' options, adding that the popularity of these plans is increasing, especially among young travelers and middle-income individuals who want to book their premium trips without paying the full amount upfront. He added: "Flexible payment options encourage early booking, which benefits both travelers and trip organizers in managing capacity and pricing." He emphasized the importance of balance to benefit from these plans, including having a financial plan to repay the money without difficulties.
In the same context, financial and investment expert Mohammed Al Mahri said: "Financial planning is the first and fundamental step before making a decision to travel." He explained: "Traveling on credit or accumulating debt should not be done, as it carries deferred risks known in economics as 'cumulative risks,' which contribute to poor long-term financial planning." Al Mahri presented the best way to plan for travel, saying: "The best method for planning travel is to save in advance by deducting a monthly amount from the husband and wife's income allocated for future trips, a sufficient period before the travel date."
He added: "Determining the available budget should precede the choice of destination, so that travel plans and needs are set according to the available financial resources of the individual or family." He pointed out that some travelers do not account for their other obligations when making a travel decision, only to find themselves facing accumulated obligations that are difficult to manage. Al Mahri believes that entering a borrowing phase turns travel from an enjoyable experience into a source of stress and problems, noting that the experience of many who traveled on credit was not happy, whereas those who relied on advance savings were the most comfortable and enjoyed the travel experience. He said: "If obligations overlap in the absence of any real ability to save, travel is costly not only in money but also in financial stability." He added: "Those who cannot afford the cost today may be better off waiting until suitable resources are available, as travel should not be a burden that haunts you after returning from the holiday."
Traveler Samer Al Khattib was the only one interviewed by 'Emirates Today' who shared a different experience, saying: "When I decided to go on a short vacation, I did not have the full amount allocated for expenses on tickets, accommodation, and other costs. I checked my financial situation well before using the 'travel in installments' feature." He added: "I set a clear repayment plan and determined the installments to be in line with my monthly income without affecting basic expenses. I committed to the payment deadlines and settled all installments without any pressure or problems."
Traveler Umm Ahmad shared her experience, saying: "I thought the installments would be easy, but I did not set a clear repayment plan and did not calculate my other monthly obligations." She continued: "I started delaying monthly payments, and I found myself paying additional fees and penalties that significantly increased the cost of the trip. In the end, I paid more than I would have if I had waited and traveled when I had the full amount.
