“OUR HOLIDAY INVESTMENT PLAN’ HELPS CUSTOMERS TO SAVE FOR THEIR FUTURE HOLIDAY
CEO,Tour Operating, Kuoni India
cost overlay,” adds Suri.
Thomas Cook India offers a more definitive plan, on similar lines as Kuoni India. The travel company locks in package rate one year before the actual travel. So if you are eager to travel to Thailand next year, you can lock the cost of trip at today’s rate.
Once the travel company works out future cost (of your travel package), you will be asked to open an RD account with one of
Credit card purchases give you great flexibility to plan your holiday. The payment for your holiday happens instantly, if you have sufficient credit limit
Thomas Cook’s empanelled banks.
“The attractive interest of 9.1 per cent (tenure of 12 months) earned by customer promotes the habit of saving, as also early planning of holidays,” says Abraham Alapatt, chief innovation officer and head, Marketing, Thomas Cook India.
“The added advantage of a top up from Thomas Cook on the 13th installment makes the entire
plan even more viable for the consumer. The USP of paying for a future holiday at today’s prices ensure consumers a powerful proposition of an inflation-proof holiday,” adds Alapatt.
Per chance if you are not able to travel a year later, you can get almost the entire sum of money you deposited in the RD account. However, short notice cancellation (two- three months before travel) may incur penal charges.
Essentially, the tour companies negotiate (prefix) rates with airlines and hotels at the time of drawing your package cost. They may also keep sufficient buffer to cushion forex volatility.
panies suffer losses only when they get their forex calculations wrong.
“Travel savings account is very popular among travelers in the 35-45 years age bracket. This is a very simple product; all they have to do is to pick the right holiday package and invest in an RD account regularly,” says Me- non of Cox& Kings.
Undoubtedly, it is always better to save money in advance to finance your holiday. Customers must avoid loans for unplanned travel (future travel) as inability to travel at a later stage would incur ticket / hotel booking cancellation charges, apart from regular interest payments.
An EMI option should be your last alternative when it comes to travel for pleasure. Before opting for travel loans, check ticket cancellation policy of both bank and the travel agency. Some operators do not allow cancellation or modification of travel dates.
There are several ways to finance your dream holiday, the idea is choose the best one that suits your income profile.