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Expert reveals why you should avoid 'buy now, pay later' holidays READ MORE: How to holiday like the super rich on a budget By ALESIA FIDDLER - TRAVEL REPORTER Published: 11:43 GMT, 27 October 2025 | Updated: 11:43 GMT, 27 October 2025 Experts have revealed the risk of 'Buy Now, Pay Later' holidays that are increasingly drawing in travellers. Over recent years, travellers have been able to choose to pay for the holiday sometime after booking, instead of upfront. The option has become more popular and makes travelling more attainable, in some ways. Airbnb joined the trend back in 2023 when it introduced Klarna as a way for guests to pay in instalments. Travelodge also recently revealed it would be allowing customers to 'stay now and pay later' with PayPal, Clearpay or Klarna. 'Lock in that staycation you've been eyeing today and pay in a way that suits you later,' the website reads. Buy Now Pay Later allows customers to spread out the cost of products, trips and bookings over time. The trend seems to be gripping holidaymakers who are reportedly increasingly searching for similar options. Over recent years, travellers have been able to choose to pay for the holiday sometime after booking, instead of upfront (stock) Phrases including 'buy now pay later hotels' are higher in Google searches compared to earlier this year. But experts have warned against using the option, as it offers less protection for travellers and could put them in debt they aren't able to pay back. Matthew Sheeran, from debt solutions and budgeting site Money Wellness, told The Guardian: 'While it can be really convenient, it's worth remembering that it doesn't come with the same protections as a credit card.' He explained that customers who run into issues aren't offered the same protection as a section 75 that comes when you pay with a credit card. Meanwhile, Maisie Blewitt from Transfer Travel, noted that if the hotel, airline or company a holidaymaker has booked through using 'buy now pay later' goes bust, the money could be at risk. She added: 'Refunds can be messy, too, because if a trip is cancelled, instalments can keep coming out of your account until the refund clears, which could take weeks.' The travel expert encouraged travellers to read the small print when booking using such methods. 'Buy Now, Pay Later' trips are expected to surge by 107 per cent by 2028, the Express reports. But experts have warned against using the option, as it offers less protection for travellers and could put them in debt they aren't able to pay back (stock) Paul Ferrara, from Avenue Investment Management, told the publication: 'Buy Now, Pay Later (BNPL) products may appear to be a tempting finance method to finance a holiday trip, and indeed it may seem appealing with the prospect of interest-free payment terms. 'But there are dangers attached to them. 'In the event of the failure to pay on time, high interest-rates may be charged and these will be considerably higher compared to those charged on conventional loans. 'Moreover, it is easy to lose control over several BNPL agreements and forget about payments, which will harm your credit rating.' PayPalAirbnb Share or comment on this article: Expert reveals why you should avoid 'buy now, pay later' holidays Add comment
