Thomas Cook Partners with GoCardless to Offer Direct Debit and Installment Payment Option

Travel service provider Thomas Cook has announced a partnership with GoCardless to offer a new direct debit scheme.

With this new service, travelers will be able to pay the booking amount over a longer time period in installments, said the company.

GoCardless will be facilitating the direct debit scheme and Thomas Cook will only play the role of a tour operator.

Customers of Thomas Cook already had a range of finance services geared towards the travel industry. For example, travelers could open a holiday savings account with them, where they could save up the total cost of the trip in 12 installments, then take the trip with the added bonus of some interest earnings.

With the new scheme, Thomas Cook will offer customers monthly installments, better known as EMI. However, Thomas Cook will not charge any interest for the total cost of the trip.

Commenting on the new direct debit option, Emma Davis, Thomas Cook’s Head of Digital Product, said that “we know that for many of our customers, a holiday is their biggest spend of the year, and we are always looking for ways to help them pay.”

She further explained that by teaming up with GoCardless, Thomas Cook will be able to entice customers to take the trip now instead of delaying it so that they can save for it. “By partnering with GoCardless we’re offering our customers an easy, fee-free way to spread the cost of their holiday whilst securing upfront at minimal cost.”

Since Thomas Cook will not charge any interest on the monthly installments with this scheme, it basically reverses the process of saving up first with a holiday savings account then paying for it at once.

Customers of Thomas Cook will have the option to choose the direct debit option with GoCardless on their checkout page besides paying with cards. The company claimed that it easier to opt-in for the GoCardless payment plan compared to paying with cards.