Clients getting FOMO?

NEW start-up, FOMO
Travel, launched in the
South African market a
few weeks ago, offering travel
agents a new ‘lay-by’ payment
solution for their clients.
With no credit checks and
no interest, FOMO Travel
allows travellers to save
for their holiday by paying a
deposit and a monthly fee
prior to travelling. Forty-five
days before departure, the
holiday needs to be paid in
full.
Travel agents can either
refer their clients to FOMO
to explore payment options,
or they can upload packages
onto the FOMO website.
“We urge all travel agencies
that are battling to convert
sales to join our team of
affiliates and offer this as an
alternative payment method
for their clients. Travel agents
are charged a ‘referral’ fee
for FOMO to create, monitor
and convert the sale. The
fee is usually 50% of the
commission the travel agent
would earn on the package,”
says Andrew Katzwinkel, ceo
of FOMO.
FOMO Travel is not a travel
agency, Andrew says. “We
are a B2B, B2C company
that facilitates the travel
industry by providing a
unique payment mechanism
that converts a sale that
previously wasn’t there for
the affiliate.”
Andrew says FOMO Travel
currently works with several
affiliates, including the Singer
Group and XL Embassy
Travel. “We have relationships
with tour operators such
as Beachcomber, Holiday
Factory, Pure Sports and Pure
Ski,” he says.
Greg Taylor, md of Pure
Tours, says Pure Tours
provides FOMO Travel with
the package price and they
structure the payment terms
with the end user. Although
Greg says Pure Tours has
seen a slow start with this
new model, he believes it
has potential with the low
to medium-priced packages.
“Our target market tends to
have the money to pay in
full,” he says.
Travel agents say this kind
of lay-by payment model
would work well in the South
African market and would
appeal to the emerging
middle class especially. “This
model could be a positive
way of growing new markets,”
says Sean Hough, ceo of
Pentravel ceo.
Monica Horn, product
manager of the Harvey World
Travel Franchise Support
Team, says it’s a reality that
fewer people can afford to
travel and agents need to
be creative in helping people
plan and save for their
holiday.