Payments

With consumers facing higher prices, Kayak launches BNPL

  • Demand for travel and airline prices have gone up significantly as the pandemic wanes.
  • KAYAK is partnering with Affirm to offer its users the ability to pay for their travel in monthly installments.
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With consumers facing higher prices, Kayak launches BNPL

KAYAK recently launched BNPL functionality for all eligible travelers on the firm's website.

Why it matters

Amid increased demand and inflation, travel costs have skyrocketed. After some initial testing, the online travel company launched its BNPL option broadly in January 2023. KAYAK chose Affirm as its exclusive pay-over-time provider in the U.S. This partnership offers travelers greater spending power and payment flexibility via a BNPL option when booking trips on KAYAK.com.  

"With flight prices up 40% YoY according to KAYAK and a recent Affirm survey revealing the average person plans to take 3 trips this year, spending over $3,000 on travel, we wanted to offer more flexible payment options to our travelers," Paul Jacobs, GM & VP of KAYAK North America told Tearsheet over email.

affirm and kayak signed a partnership to provide BNPL to users of Kayak.com
Source: KAYAK

How it works

By selecting Affirm at checkout on KAYAK.com, approved KAYAK travelers can split the total cost of flights, accommodations, and rental and car sharing over $150 into monthly payments, with visibility over total cost.

Shoppers want more customizable payment options

With budgets tight and prices up, consumers are looking for more options in their payment choices. "Pay-over-time platforms enable more travelers to plan and book trips and pay for them in a way that fits into their budget. Specifically with Affirm, their technology is able to address a wide range of transactions with customizable monthly payment options. This provides our users with greater choice and flexibility. But most importantly, there are no late or hidden fees," Jacobs said.

Travel demand up across the board: Rising travel demand isn't just a KAYAK issue -- it's happening across the board. Airline purchases with Affirm increased more than seven times YoY this fall.

The integration: Jacobs claimed the integration went smoothly, citing the "very capable" technical teams from both partners.

"We are happy with the reception of the product and the usage amongst KAYAK customers," he said.

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