Many South Africans have ambitious plans for local and foreign travel this year, and travel agency Rennies BCD Travel is hoping to lure their business with a new payment option.
The programme, Vacay Layaway, is a voucher-based system whereby people save towards their travel plans over two years. By buying vouchers that can be redeemed on the Rennies website, travellers can “lay-by” their desired destination.
Rennies BCD Travel CEO Reece Oakes said this programme was established to assist people who want to travel but needed a “push” to get there. He said the way it was structured would help travellers avoid getting into debt.
“South Africans are no stranger to lay-by solutions. It is a tried and tested strategy in the retail market. With Vacay Layaway, our aim is to introduce this concept to the travel market using a voucher mechanism — something which has never been done before in South Africa.”
According to Marriott Bonvoy research, South African holidaymakers are planning to take far more trips than last year. “Among those planning holidays, the top travel destinations are South Africa, the US, Mozambique, France and Mauritius,” a Marriott report said.
With more than 10-million citizens more than three months behind on their payments, adversely listed or facing judgments, travel has become an unattainable service
— Reece Oakes
It also found that while people are planning to go on more holidays, they are also looking to get the best value for their money.
Most of the respondents said they would prioritise “good deals” over a set destination. Meanwhile 85% of respondents said they were planning “bravecations” — holidays on which they would try adventurous new things.
Globally, travellers are increasingly embracing flexible payment options that allow them to pay for their trip in advance or travel first and pay off the cost in instalments.
In South Africa, the FOMOTravel start-up, in collaboration with Hippo, began offering such options in 2018.
Credit facility Mobicred has a “buy-now-pay-later” option for travel that can be paid off in instalments.
In November, online travel agency Travelstart introduced a new payment option for travellers as part of its Black Friday deals. It said travellers could “secure their Black Friday bargains and spread payments across manageable, interest-free instalments, making holiday planning more affordable than ever”.
Oakes said Rennies did not want to add to the debt burden of South Africans, who were experiencing a cost-of-living crisis. “With more than 10-million citizens more than three months behind on their payments, adversely listed or facing judgments, travel has become an unattainable service. The stats are staggering,” he said.
Oakes said the Rennies product was designed to specifically fund travel by incrementally purchasing vouchers that are redeemed for trips.
“In addition, the Vacay Layaway solution falls under consumer protection laws such as the Consumer Protection Act, which regulates advance payments and ensures fair practices.”
The scheme does not stipulate a set number of instalments that consumers are expected to pay, allowing them to make payments of whatever amount they want into the account on their own schedule.
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