Your new competitor –
the bank FLY-NOW, pay-later, travel
financier, LeisureFin, has
entered the industry in an
effort to offer the middle-class
traveller travel finance.
“Travel agents can send their
clients to us, or contact us
on their behalf,” says founder
of LeisureFin, Clarence Ford,
adding that the company
offers credit at affordable
rates. “Our approvals have
been at rates of 17%-24%.”
Although the company says
it is a focused finance
business, it also handles
bookings end-to-end by
working with travel suppliers,
including MSC Cruises,
Perfect Destinations, GS
Travel Services and others.
“While we can deliver
packages to anywhere in the
world, we also arrange more
bespoke travel solutions such
as church or sports tours,
Indian Ocean island vacations
and adventure holidays,”
says Clarence.
Agents not partnered with
the financier, can expect that
a management fee would
be added to the cost of the
package the client seeks to
purchase.
The financier hopes
partnerships with other travel
agents and tour operators will
bring more business to the
trade, but consultants are not
so sure.
“I understand why they’re
doing it,” says md of Harvey
World Travel Southern Africa,
Marco Cristofoli. “They want
to target a market, but I
wouldn’t send my customers
to them for the simple reason
that I would lose my business
– they’d have your database,
essentially.”
Ceo of eTravel, Garth Wolff
says: “Travel is a perishable
commodity, like food, and all
that’s going to happen is that
people are going to buy their
travel; they’re going to use
it and then they’re not going
to want to pay for it. It’s just
another form of debt creation
for this poor indebted nation
of ours.”
He says those in the
trade need to look after the
goodwill of the traveller and
that allowing travellers to
create debt goes against that
principle.
LeisureFin partner, Gouwa
Sheldon, owner of GS Travels
in Cape Town, says although
the opportunity exists for
non-partnered travel agents
to lose out on business, she
thinks the partnership will
enable her company to reach
the man on the street. “It’s
also about providing the client
with as many options as
possible,” she says.
When TNW asked Clarence
what he’d say to agents
concerned that LeisureFin
could steal their clients, he
said: “I think it’s a legitimate
concern, but we are not a
travel agent. We can give a
quick solution to a finance
need that otherwise would
be an arduous process.
Partnered travel agents’
clients remain their clients
and we look to provide a
service for their clients.”
Travellers seeking finance
with LeisureFin can log on to
the company’s website and
then select from a range of
products advertised by the
financier’s partners, including
travel agents and suppliers.
The financier, who is an
accredited merchant of
Nedbank, NCR-certified and
NCA-compliant, will secure a
loan for the traveller, pay
the supplier or travel agent
directly and then work out a
payment plan with the
traveller ranging from 12-60
months.
