Analysts have said they expect that this summer will be the biggest travel season, ever. That’s a big deal for airlines, which have struggled over the past two years as the COVID-19 pandemic has changed the way we do just about everything.
Millions, if not billions of people who have largely stayed close to home during the pandemic are likely to venture out as conditions allow. Everyone who had to put off traveling to see family or to celebrate a special event–like an anniversary–is looking forward to warm weather this year.
To encourage those travelers, Delta just announced a brilliant strategy: it’s jumping on board with Buy-Now-Pay-Later (BNPL).
Over the past two years, the Buy-Now-Pay-Later (BNPL) industry has exploded alongside the surge in online shopping. The idea is that a shopper can spread out payments, usually over three-to-six months, depending on the type of purchase. It turns out, people really like the idea, with BNPL representing almost $100 billion in 2020.
For a company like Delta, it actually makes sense for two reasons. The first is probably obvious: travel can get expensive. If you’re trying to decide if you can afford that big summer vacation you’re hoping to take, the idea that you can book your flights now, and pay for them over the next year–without paying interest or a fee–might be very appealing.
You might even spend more than you otherwise would–is the biggest benefit to any merchant that decides to let customers pay over time. Even if you aren’t collecting interest, if you make more sales for larger amounts, that’s a huge win.
The other reason is actually far more interesting. That’s because there’s a catch. Well, sort of.
In order to take advantage of this new option, you have to use one of Delta’s co-branded American Express cards. Delta’s BNPL is just taking advantage of the “Plan It” feature that already exists on many American Express cards.
For Delta, that might be the most brilliant part of all. The company’s…