Travel retailers are signing up for financing plans to offer their clients as a new trend sweeps the travel industry in Canada.
We spoke to Brad Miron, founder and CEO, Travel Lab, about this latest trend. Travel Lab developed the marketing and branding for the zero interest payment (Z.I.P) program, only available from his client The Travel Agent Next Door.
TTAND: Various travel companies are now offering financing programs – is this one any different?
Brad Miron (BM): Canadians have a big appetite for financing almost anything, and travel is the obvious next big market as it can be one of the largest annual household purchases. But paying their travel off slowly on a credit card at rates as high as 26 percent or through various recently- announced programs adds cost.
The Travel Agent Next Door saw an opportunity and created a program, in partnership with Flexiti, that addresses this with Z.I.P., a Zero Interest Program, which is a better way for consumers to finance their travel. Consumers pay a set financing fee that is much lower than the interest rate on financing or credit cards.
TTAND: Why are financing plans suddenly becoming popular again….why not use a credit card?
BM: Canadian consumers are willing to finance almost everything. One of the main reasons travel companies are jumping on this bandwagon is that they are trying to differentiate themselves in the market and give their client options in addition to credit cards.
TTAND: What is unique about The Travel Agent Next Door?
BM: The Travel Agent Next Door saw the opportunity to drive a wedge with a much more advantageous value proposition for the consumer: zero per cent interest. Apart from the one-time financing fee, the clients pay zero interest, which means no surprises or ongoing compounding interest at high rates.
TTAND: How did Travel Lab come up with the Z.I.P. logo and tagline?
BM: I saw the zero percent interest angle as being a complete game changer, plus it is the core strength of the offer’s value proposition-- over all other options for clients in the market. Hence, Z.I.P. was born, not only as an acronym for Zero Interest Program, but it’s the amount of interest a client will ever pay post their transaction—zero!
It also speaks to the quickness of clients to get approval for the offer. The tagline is ‘A better way to finance travel’, which, when you compare the different programs, it truly is.
TTAND: Will this be both a trade campaign and a consumer campaign?
BM: Yes. We have designed a B2B program for agents with the value proposition of their ability to increase sales and commissions by having access to this phenomenal sales tool and program. The consumer facing program allows The Travel Agent Next Door agents and agencies exclusively to push the program through their marketing and communication channels to consumers.
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