Travel agencies offer 'book now, pay later' deals

China's online travel agencies are starting to roll out a “book now, pay later” strategy, which means travelers only pay on the day they use the booking, as part of a slew of promotions the platforms are preparing for the Double 11 e-shopping bonanza next month.

Travel giant Trip.Com launched its “reserve now, pay later" feature this week, which allows customers to make a booking without any payment, and removes the risk of customers losing money should they change or cancel the booking.

Visitors are enchanted by the stunning view of the Five Colored Pool in Jiuzhaigou National Park, located in Jiuzhaigou County, Aba Tibetan and Qiang Autonomous prefecture, Sichuan Province, on Oct. 10. Xinhua

The offer mainly applies to hotel reservations and includes 90,000 hotel package deals from 300 hotel groups in 15 countries and regions worldwide, a company insider said. The Shanghai-based firm’s hotel packages are normally valid for 120 days, but can be valid for up to one year. Bookings can be canceled at any time without any payment due.“This is a way for e-travel agencies to attract customers from other channels,” said Wei Changren, founder of travel news portal BTIII, as quoted by yicai.com. “Normally, if you pay first and then cancel, airlines and hotels will not refund the full amount. Therefore, some businesses are adopting a “no-payment booking” strategy during the Double 11 promotion period so that customers do not risk losing money.”

Online travel agencies are facing intense competition from social media platforms and live streaming studios. Platforms such as instant messenger WeChat and on-demand services giant Meituan are siphoning off a lot of customers.