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Enticing Option

Travel on Installments–New Trend or Debt Trap?

Booking a vacation without paying upfront? For many, this seems like an attractive option.
Booking a vacation without paying upfront? For many, this seems like an attractive option. Photo: Getty Images
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April 26, 2026, 5:24 am | Read time: 3 minutes

Wanderlust meets an empty bank account–a dilemma many are familiar with. But increasingly, there seems to be a simple solution: Book your trip now and pay later. While this sounds like a convenient shortcut to a dream vacation, it raises a crucial question: Is vacationing on installment payments really a good idea?

Trend from Online Retail Reaches Travel

The idea isn’t new: “Buy now, pay later” has become established in online retail–and now the concept is spilling over into the travel industry. The travel search engine Kayak highlights “book now, pay later” in its current trend report.

The travel portal Urlaubsguru actively promotes the model: “A vacation on installments gives you the opportunity to finance your trip, recharge your batteries, and return to everyday life full of energy.” According to Kayak, travelers with limited budgets are increasingly opting for such payment options and expect providers to integrate them.

Caution Among Major Tour Operators

A look at the industry shows, however, that major providers remain cautious. Neither the German Travel Association nor market leader Tui offer classic installment payments for vacations. Even at Schauinsland-Reisen, services like PayPal or Amazon Pay are available, but their installment payment functions are explicitly excluded.

What is common, however, is a deposit at booking and the later settlement of the remaining amount. A true vacation on credit is not yet standard among established operators. According to the comparison portal Check24, none of the travel providers examined offer classic installment payments.

More on the topic

Travel Portals Embrace Financing Options

It’s a different story with some online portals. For example, “fluege.de” allows payment in installments via Klarna–at least for trips up to 2,500 euros. Urlaubsguru goes a step further by combining information on installment travel directly with credit comparisons.

An example: For a loan of 2,000 euros with a term of twelve months and an effective annual interest rate of 8.7 percent, the monthly installment is about 174 euros. In total, approximately 2,090 euros would be repaid–about 90 euros more than the original amount. Whether this surcharge is worth it for an immediate vacation remains an individual decision.

Also interesting: The best tips for booking vacations online

Risks: When the Dream Vacation Becomes a Debt Trap

Consumer advocates view the development critically. They warn against overestimating one’s budget–with the risk of falling into a debt trap. Deferred payments or financing should only be used for “urgent important purchases.”

A broken refrigerator is a classic example here. A vacation, on the other hand, is important but not urgently necessary–and above all, flexible. Instead of a long-haul trip, cheaper destinations could be considered, such as a stay at Müritz or Möhnesee.

Those who plan long-term can also afford a vacation without credit. A structured savings plan–such as monthly deposits into a savings account–can help build the travel budget step by step. In one to two years, the dream trip can be realized–without additional costs from interest or installment payments.

With material from dpa

This article is a machine translation of the original German version of TRAVELBOOK and has been reviewed for accuracy and quality by a native speaker. For feedback, please contact us at info@travelbook.de.

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