Option to lay-by travel a huge hit with consumers

Media release

Monday 23 November 2009

LayAway Holidays hits the ground running

Option to lay-by travel a huge hit with consumers

Only 21 days after its launch, new online travel company LayAway Holidays has had more than 25,000 visitors to its website and holiday bookings and requests sitting at more than 12 times the expected demand.

LayAway Holidays founder, Aaron Panapa, says “Since the launch of LayAway Holidays on 2 November, consumer demand has been phenomenal.

“Not only have we exceeded site visitor expectations tenfold, we’ve also beaten travel booking expectations by more than (200%).

“The enormous level of consumer enquiry and booking requests means we have had to hire more staff to help keep up with the extra demand and clear a backlog of requests for information and holiday quotes.

“Obviously we would prefer not to keep people waiting, but have been caught out with the much higher than predicted demand for information and bookings.

“Most people have been very understanding in terms of having to wait for their information, we’re very grateful to those who are waiting patiently.”

Panapa says the high level of interest “points to a growing preference in the Kiwi market for a way to book, and budget for, international travel without putting it on the credit card and paying hefty interest rates.”

Inspired to set up the online agency after talking with a friend about his concerns about paying for a holiday “on tick”, Panapa’s online agency model follows a recession-friendly trend that has proven just as popular in Australia and the United States.

“Its arrival in New Zealand now gives locals an alternative to booking holidays without amassing credit card or finance debt,” says Panapa.

Using a fixed price payment system, customers first choose their holiday package or let LayAway staff tailor a package to suit their needs.

Once trip details are confirmed, the price of that holiday is set in stone. There can be no price increases or unexpected cost creep whatsoever; something that is assured by Layaway Holidays’ Fixed Price Guarantee.

Customers then select a layaway plan to suit their budget. Priced from $3.49 per person a day, the holiday can be paid off between a 3 and 18 month term.

“Customers pay no deposit,” says Panapa. “There are no credit checks or finance approvals required, nor is there a credit card interest or finance fee. Once the holiday is paid off, they simply have to pack their bags and head to the airport. It’s as simple as that.”

“As a member of the Travel Agents’ Association of New Zealand Incorporated (TAANZ), we are full participants in the TAANZ Bonding Scheme, which guarantees the safety and security of our Clients funds. It’s an important point, and one we want to emphasise.”

Offering family holidays, couples destinations and cruises, LayAway Holidays currently offers packages to Fiji, Rarotonga, Surfers Paradise and Tahiti. Cruises take in the sights in the South Pacific, Greece, Croatia and Italy, Rome and the Mediterranean; while “Tailor-Made” trips ensure that every budget and taste is catered for.

Already expanding its product offering— LayAway Holidays has just finalised a joint venture with Mark Warner Travel in the UK. This will allow LayAway to expand on its current product list and start offering ski holidays to many of Europe’s top ski resorts and ‘sun holidays’ to a wide selection of 5-star resorts throughout the Mediterranean.

“Lay-by used to be the way to pay off something you aspired to own or experience,” Panapa comments.

“But with the credit-card era of instant gratification, that behaviour went to the way-side.

“Now, however, consumers have learned to be more cautious with their discretionary spending and are shunning mounting debt.

“Layby—historically the preferred way to sensibly pay off a large purchase - has once more become de rigueur. LayAway Holidays is happy to be a part of that trend.”

ENDS

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