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Vacation Financing

Vacation Financing Program

The Opportunity

According the Expedia’s annual Vacation Deprivation Study, over 375,000,000* vacation days are left unused every year by U.S. employees, primarily because they do not have the resources necessary for a family vacation. Millions of families don’t enjoy a minimum of an annual summer vacation to vacation and leisure destinations due to the costs of booking vacations, especially airfares, which require full advance purchases. Today, not a single Online Travel Agency (OTA) offers payment programs or financing for vacations, expecting consumers to use their credit cards as a form of financing. Unfortunately, too many people don’t have adequate availability on their credit card, if they even have a credit card at all.

The Mission

Our mission is to allow more people to go on vacation by providing help in the form of becoming the financial institution that secures their vacation for them, without the need for them to pay the whole vacation amount upfront. This will allow more families to enjoy the benefits of getting away and decompressing from the stresses of life without the requirement of having enough money in the bank or on a credit card at any one time. The more vacations families can take, the healthier their lives will be, and the better they will work. By providing a no credit check environment, even consumer and families without credit cards, too many of which live check to check, can experience a real vacation and leisure destination. In some cases for some families, putting their toes in the sand of a beach for the very first time in their lives.

The Market Size

The U.S. market spent over $947 billion in 2015 in outbound travel, which included more than 65% dedicated to vacation and leisure. This accounts for a fraction of the 324+ million Americans who can afford family vacations every year. The average cost for a family of 4 (according the an American Express study in 2014) is $4,580 or $1,145 per person. A recent CNN poll showed than 1 in 6 Americans do not have $500 in a savings account. According to the U.S. Bureau of the Census, there were about 125.82 million households in the United States in 2016. If we assume 1 in 6 do not have the resources to pay for a family vacation in advance, it would equate to 20,970,000 families that aren’t going to go on vacation this year. We aim to change that.

Interesting mathematical equation: Multiply the average family vacation for 4 ($4,580) by the number of households that may not be able to afford one and you would double the U.S. expenditure by adding another $960 billion to the outbound travel statistics.

The Business Model

Vacation Funding allows for people from all economic backgrounds, regardless of credit score, to plan a family vacation without the need to pay for the whole vacation cost upfront. Vacation Funding offer easy payment programs, beginning with a reasonable down payment and manageable monthly payments, which would include transportation costs such as airline tickets.

Consumers only have a few pre-requisites, including planning and booking their vacation far enough in advance that payments make sense as well as must having to have paid all payments prior to departure. Travelers will not be able to go on vacation if they have not paid the vacation off before leaving, mitigating the majority of the risk factors for Vacation Funding. If and when changes to itineraries are necessary, travelers are offered credit towards a future vacation, rather than a refund of the amounts paid. The travelers pay a convenience fee each time a payment is processed or a vacation funding fee is built into the vacation package altogether.

Vacation Funding will help millions of families go on vacation every year who might not be able to otherwise.

The Business Model

We believe by the end of the 2nd fiscal year, we can accomplish travel sales of .001% of the available vacation potential by providing funding options to the 20,970,000 households in the U.S. Since there is no equivalent benchmarks for projections as we are pioneering an industry vertical, optimistically, we believe we can achieve a .01% breakthrough. For the sake of this forecasting, we use 1/10th of 1%.

Contact us for full financial pro forma.