Planning and paying for a big holiday can often be challenging. Booking as far as 18 months in advance is fairly normal nowadays and typically holiday companies ask for a deposit at the time of booking, whilst the remainder of the money is due a set time before departure. Thomas Cook have recently launched a scheme that could mean less pressure on your bank balance and a little more time to pay for your dream holiday.
Thomas Cook’s Book Now Pay Later Scheme
For people booking their holidays at least 14 weeks in advance, Thomas Cook are offering a no deposit interest-free payment scheme on some of their holidays. People booking their holidays simply sign up to a monthly direct debit with the final payment being made at least six weeks before departure. For example, you could book an all-inclusive seven night stay at the Sunprime Pearl Beach in Kos for two adults sharing, departing on 6 May 2019 with a basic total holiday cost of £1482 and pay £114 per month.
If you are someone who does not have substantial amounts of spare money for a hefty deposit and don’t want to incur interest charges by using a credit card, it could be very useful to be able to pay in much lower monthly installments. This is especially true if you know you struggle to save money and would find it difficult to save over a longer term to pay the remainder of the money. It’s also a useful scheme for spontaneous bookings or people who want to take advantage of short term special offers as they can freely book the holidays without worrying where they’ll get the deposit from.
The main downside of this scheme is that it puts a great deal of your money in Thomas Cook’s bank account while it could have been sitting in yours accruing interest. With the interest rates so low at the moment, that doesn’t seem like a big deal but, if you needed to cancel your trip, you would still lose the same amount as you would if you’d paid a traditional deposit but you would need to claim the rest of the money you had paid back from them. It also means that, although you don’t pay the deposit immediately, you do pay the first installment within a month and, by the second month, you may have paid more than the initial deposit. For people who don’t like the idea of a company like Thomas Cook having control over their money and are confident that they can save the cost of the holiday themselves without accidentally eating into it, this scheme is probably not for them.
Whether Thomas Cook’s book now, pay later scheme is worth taking up is entirely dependent on how you like to manage your money. It’s a great idea for people who aren’t confident in their discipline to save money but unnecessary for those who know they can save the money themselves. Whichever way you choose to pay for your holiday, you can get value for money travel insurance from ERV. Click here to begin your quote.