Gen Z Travelers Drive Buy Now, Plan Later Travel Bookings by Over 20%: Fliggy's 2024 Buy Now Plan Later Travel Insight

The share of outbound travel in the'Buy Now, Plan Later'(BNPL) segment in 2024 has increased by 10 percentage points compared to last year

BNPL now a mainstream method of travel consumption and is set to grow in 2025

HANGZHOU, China,Jan. 10, 2025/PRNewswire/ -- Fliggy, a leading online travel services platform and a wholly-owned subsidiary of Alibaba Group (NYSE: BABA and HKEX: 9988), has released its 2024 Buy Now Plan Later (BNPL) Travel Insight. The insight shows the booking volume for BNPL travel products in 2024 has increased by over 20% compared to the previous year. This growth is largely driven by a younger demographic, with Generation Z consumers accounting for nearly a quarter of those utilizing this purchasing model. Planning travel through BNPL is now a mainstream method of travel consumption.

Great cost savings with greater flexibility

'Buy Now, Plan Later'travel involves consumers purchasing single or multiple travel products – such as flights, hotel stays, and attraction tickets – in advance. This model allows travelers to secure these options for future use, redeemable once they finalize their travel dates and destinations. Generally, this approach provides greater cost savings compared to conventional direct booking, with many options offering the flexibility of full refunds without restrictions before the reservation is finalized.

 "Looking ahead in 2025, the recreational tourism market is expected to experience steady growth in both scale and consumer spending,"saidActon Chou, Head of BNPL Product Operations at Fliggy."Our primary objective for travel companies is to expand our customer base and tap into the incremental demands of our existing customers. The inherent advantages of the'Buy Now, Plan Later'model – such as flexible pricing, adaptable benefits, and versatile usage – make it a strategic tool for enhancing customer willingness to spend."

Hotel fulfillment rates jump 70%

The insight indicates that the share of outbound tourism within the BNPL travel segment in 2024 has increased by 10 percentage points compared to the previous year, with hotel booking fulfillment rates for outbound travel surging by 70% year-on-year. A noticeable trend is the expansion of popular travel destinations from a four-hour flight radius to a twelve-hour flight radius fromChina. The top destinations for BNPL orders in 2024 includeMalaysia,Singapore,Thailand,Japan,South Korea, theMaldives,New Zealand,Australia,the United States, andIndonesia. Additionally, there is growing interest in emerging destinations such asIceland,Norway,Kenya, theUnited Kingdom, andNew Zealand, which all have experienced rapid growth.

International cruise bookings nearly triple

Travel experiences in 2024 have continued to diversify, with consumers exploring breathtaking landscapes such as Bomi in Tibet, embarking on self-driving tours acrossNew Zealand, and taking luxury cruise ships to see albatross and penguins through polar tours. According to data from Fliggy, there has been a rapid increase in demand for international cruises, overseas car rentals, and tickets to overseas amusement parks. The volume of international cruise bookings saw a near threefold increase year-on-year.

45% of hotel package buyers are new customers

The'Buy Now, Plan Later'model has gained popularity among consumers, particularly in the younger demographics. In 2024, a notable influx of first-time users embraced this model. Data from Fliggy reveals over 45% of consumers purchasing hotel packages through this model were new customers. Notably, nearly one-quarter of consumers opting for this model were born between 1995 and 1999 (often referred to as Gen Z), while the proportion of consumers born in 2000 or later has seen the fastest growth, nearing 20%.

BNPL product placements surge by nearly 70%

InChina, more consumers are turning to live streaming for information on travel and events, often purchasing travel products through the BNPL model. Fliggy has led the way in integrating livestreaming into the travel industry, creating a diverse and efficient livestreaming ecosystem. By partnering with Taobao and a network of professional live streamers, Fliggy supports merchants who may lack the resources for effective live commerce.

In 2024, promotional placements for BNPL products through livestreams and Key Opinion Leaders (KOLs) on Fliggy rose by nearly 70% year-on-year, with a significant uptick in conversion rates for livestreaming sales. Notably, during the 2024 Double 11 shopping festival, Fliggy's official content-driven sales channels, including its Fliggy Super VIP livestream, performed strongly, with 19 product items each exceedingRMB10 millionin sales.  

About Fliggy

Fliggy is a wholly-owned subsidiary of Alibaba Group (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter)), and is one of the leading online travel platforms inChina. Fliggy places a strong emphasis on innovation in its products and services, catering to the increasingly personalized and diversified needs of consumers in bothChinaand overseas markets.

Leveraging Fliggy's advantage as part of the Alibaba ecosystem, merchants can benefit from the vast user base within the Group. Fliggy also collaborates with partners through a full-service management format, helping more merchants, especially small and medium-sized ones, easily and efficiently share opportunities enabled by digitalization.

Fliggy's long-term strategy is to promote the digital transformation of the tourism industry, using an open platform and mechanisms to help the industry make better use of digital business infrastructure for their operations.

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SOURCE fliggy