It’s a tough economy for consumers. An expected steep rise in the price of fuel, the possibility of another hefty electricity price hike, and the increase in Value Added Tax from 14% to 15% are all making it harder for the average consumer to save money.
Those unwilling to give up lifestyle purchases to ease their spending are forced to pay for holidays, appliances and electronic goods with their credit cards, inevitably paying more in the long run as interest accumulates.
The credit model of funding one’s holiday now has a strong contender gaining traction locally: it’s called “lay-buy” travel. The brainchild of a South African start-up, this novel concept means you can pay for your holiday in interest-free instalments up to 24 months before you travel.
“Purchasing pricey items or experiences on a whim could lead to dire financial implications, so it’s unwise to fork out a large sum in the absence of proper planning and budgeting,” warns Vera Nagtegaal, the Executive Head of Hippo.co.za, a website offering a range of travel options.
Plan your holiday in advance
Nagtegaal says the lay-buy travel offering available on the platform enables consumers to adequately plan and budget for their vacation by locking-in early-bird deals in advance, without having to pay the amount off in one go.
“The ever-increasing cost of living is making it difficult for South Africans to save money. In fact, data shows that household savings to disposable income stood at 0.2% per month in the fourth quarter of last year,” Nagtegaal adds.
The good news is that with the introduction of lay-buy travel, you don’t have to choose between saving for a rainy day or going on holiday, Nagtegaal explains. “Consumers don’t have to create unnecessary debt either because you can pay a small portion of your selected holiday package upfront with zero interest.”
“Lay-buy travel is an experiential product that is affordable and versatile,” Nagtegaal adds.
“It allows you to compare and choose from a range of travel packages. You can then contribute to a package whenever you want or get outside help from friends and family. For example, guests attending a destination wedding can contribute to the special event; or they can contribute towards paying for a newly-wed couple’s honeymoon instead of buying a traditional gift,” Nagtegaal explains.
“We are always looking for smarter, cost-efficient offerings for our clients. As an online business, we look to solutions that alleviate hassle and can save consumers time and money,” says Nagtegaal.
The new comparison offering builds on Hippo.co.za’s existing travel portfolio, which will soon be broadened to include more than 200 000 local and international hotels.
Visit: Hippo.co.za
WS
