Layaway Flights: Fly Now, Pay Later

DJ August 12, 2016

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Layaway Flights: Fly Now, Pay Later

Coming soon to an airline near you: Layaway flights, where you can fly now and pay later!

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In fact, the service already exists and is called Airfordable, where travelers are allowed to buy plane tickets on a payment plan. The layaway service officially launched last December and already boasts more than 10,000 users.

Here’s how it works: After finding a flight you want, simply take a screenshot of the itinerary and upload the photo to Airfordable. From there, the site will calculate the deposit amount then apply an interest rate of 10% to 20% of the ticket cost. The interest rate is determined by demand, the date of travel and the period of time between when you book and when you travel. Airfordable will then present you with the total cost of the layaway as well as a payment plan. If you agree to the terms, they will buy your ticket while you pay it off in increments.

In the event of a default, the payment plan and ticket are canceled. The deposit paid is non-refundable, but any other payments made by the customer will either be refunded in cash or as a credit towards their next booking.

“I was familiar with layaway, so I was curious why that didn’t exist for flights since they are so expensive,” Anna Marfo, founder of Airfordable said. She added that one of the best parts of Airfordable is paying off the ticket before the trip, so you don’t have to deal with debt once you return home.

The idea of a layaway travel service is already sweeping the nation, allowing college students, families and more to purchase airline tickets that might have otherwise been unaffordable for them.

For example, if you find a round-trip ticket to Spain at $800 for a trip that is 2 months away. Airfordable would charge you a $104 layaway fee, making the total cost of your ticket $904. After putting down a deposit of $296, you would need to make 2 additional payments of $304 before receiving your boarding pass.

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Marfo, who worked in financial consulting for years, believes Airfordable is actually helping people to be more financially responsible. “The concern from some people is that we are like a Payday loan for flights, but that’s not the case,” she said. “You have to pay off the ticket before you travel, so if you can’t afford it, you don’t get the ticket, and you can’t fly.”

As Airfordable continues to grow, the site is constantly evolving. Previously, trips were ineligible for layaway unless they were at least 2 months out. That window has since dwindled down to 1 month. Additionally, users may now have up to five bookings at a time, allowing them to plan out a year of travel.

Marfo hopes to turn the simple idea of Airfordable into a major travel site of layaway options for vacation packages, hotels, and rental cars.

“The overall response has been really positive,” she said. “Getting the chance to change lives by helping people finance travel has left a positive impact on my life.”