Buy-now, pay-later vacations: Everything you should know

Written by: Andrew Dunn
• Updated •5 min read
This date may not reflect recent changes in individual terms.
A woman seated at a table smiles as she uses her laptop to book a vacation using a book now pay later service.Image: A woman seated at a table smiles as she uses her laptop to book a vacation using a book now pay later service.

In a Nutshell

Book-now, pay-later services allow you to book your vacation up front and pay the bill in installments over weeks or months. If you’re looking to pay for airplane tickets, hotels or an entire vacation, the options below may work well for you.
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“Buy now, pay later” plans allow online shoppers to make their purchases immediately and then pay their balance over time.

The trend has reached the travel industry, as well: Future vacationers can choose to book their trip — from flights to hotels to theme park tickets — and pay the bill in installments down the line.

We’ve scoured the options available to “book now, pay later” to help you choose the best ones for your next trip.

What are book-now, pay-later options, and how do they work?

In most cases, book-now, pay-later options are essentially short-term personal loans. They may also be referred to as point-of-sale loans. Typically, you select the book-now, pay-later service as your payment method at the time of checkout. The service then pays the travel company or retailer, and you pay back the loan in installments over a period of weeks or months. They might be a better deal than putting the balances on your credit card — but you’ll need to qualify based on your credit scores to be approved.

Should you use book-now, pay-later vacation options?

If you’re not able to pay for your entire vacation upfront, you may consider using a book-now, pay-later service. This can be a good option for some people but there are a few things to keep in mind before signing up.

The most important thing to think about is whether you’ll be able to pay off your vacation. Book-now, pay-later options make vacations seem affordable, but you have to commit to making payments for the entirety of the loan repayment period. If you’re not certain you’ll be able to make payments over the course of the loan, you may want to rethink using a book-now, pay-later option. You should also make sure you’ll be able to make payments on time. Making late payments or defaulting on your loan can hurt your credit scores. 

Consider evaluating a few different options to see what terms you’re offered. Look for book-now, pay-later services with low or no interest and a loan term that’ll allow you to comfortably make your payments.

Best book-now, pay-later options for entire vacations: Flex Pay

Why Flex Pay stands out: Flex Pay has partnerships with multiple airlines, cruise lines, resorts, travel agencies and vacation package providers that make it easy to book a trip no matter what type of vacation you’re planning.

  • Flex Pay partner page lists all travel companies and destinations that use its service. You can book directly through those companies and then use Flex Pay to pay.
  • You can choose a monthly payment plan from one or more offers Flex Pay gives you.
  • You can choose to make payments in monthly installments manually or set up autopay.

Best for lodging: Expedia

Why Expedia stands out: Expedia offers a page you can use to search for book-now, pay-later deals on hotels around the country. Payment is not due until you arrive at your hotel room, and Expedia has a partnership with Affirm you can use to spread your payments over multiple months if you choose to do so.

  • Book your stay directly on the Expedia site.
  • Select “Monthly payments” during check-out to set up a payment plan.
  • Affirm offers multiple payment plans.
  • No-interest options may be available, depending on your credit — or you may pay up to 36% APR.

Read our full review of Expedia

Best for families: Affirm

Why Affirm stands out: Affirm doesn’t just work with Expedia (see above), it has partnerships with numerous family-friendly travel companies, like Vrbo and Great Wolf Resorts.

You can use Affirm’s “Travel” page to select the hotels, resorts or flights you need, then book through their websites and select Affirm as your payment option.

  • Payment options include monthly plans up to 60 months
  • No interest options available for qualified shoppers.
  • Interest can be 0%, if you qualify, or up to 36% APR.
  • Make payments online or through the Affirm app. Email and text reminders notify you of your due date.

Read our full review of Affirm

Best for buying what you need to bring on your vacation: Afterpay

Why Afterpay stands out: If you’re looking to buy clothing, shoes, cosmetics or anything else to bring on your vacation, Afterpay has partnerships with a multitude of retailers that will allow you to finance your purchase.

You can shop using the Afterpay app or online on the retailers’ websites.

  • Payment plans include four payments over six weeks.
  • First payment required at checkout.
  • No interest charged.
  • No fees if payments are made on time. Late payment fees capped at 25% of the purchase.

Read our full review of Afterpay.

Best for rewards: Bank of America® Travel Rewards credit card

Why Bank of America® Travel Rewards credit card stands out: The Bank of America® Travel Rewards credit card lets you earn points on your day-to-day purchases that you can use to reimburse yourself for travel expenses — from flights and hotel stays to restaurants and take-out.

  • No annual fee.
  • No foreign transaction fees.
  • Sign-up bonus of 25,000 points if you make $1,000 in purchases over the first 90 days after account opening. This equates to $250 of travel expenditures.

Read more about the Bank of America® Travel Rewards credit card.

How we picked these options

We evaluated book-now, pay-later options primarily based on the breadth of partnerships available, interest rates, and fees and flexibility of loan terms.

We also took into account ease of use, whether payments were required upfront, and other features. Book-now, pay-later choices shown here may not be the best option for your individual situation, so evaluate carefully before moving forward.

FAQs about book-now, pay-later options

How can I go on vacation and pay later?

There are many companies that offer book-now, pay-later options that allow you to book a vacation without paying for all of it upfront. Another option would be to apply for a personal loan. You could use the funds from the loan to pay for the vacation outright and then pay off the loan over time.

Which airline can you book-now and pay-later?

Flex Pay and Expedia allow you to book a flight now but pay for it later. They each partner with numerous airlines. Some airlines — like American Airlines — partner with book-now, pay-later services directly on their website.

Does Expedia have a payment plan?

Expedia itself doesn’t have a payment plan, but it has partnered with Affirm to give customers the option of paying over time. You can choose Affirm at check out, but you’ll need to apply in order to access the payment plan.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.

About the author: Andrew Dunn is a veteran journalist with more than a decade of experience as a reporter and editor at North Carolina news organizations, including the Charlotte Observer and the StarNews in Wilmington. In those roles,… Read more.