Archives 02/2018

Companies ought to carry out adequate checks on the ability of borrowers to repay travel loans on time. Otherwise, a surprise disruption such as an Icelandic volcano or an economic downturn could prompt defaults. Several major sellers of travel, such as Expedia, United, JetBlue, Southwest, and Lufthansa, are testing extending credit to U.S. consumers to enable them to pay for their vacations over time rather than up-front. Paying for a trip in monthly payments primarily appeals to consumers with average credit ratings who are willing to accept short-term, interest-based loans. But consumers with high credit scores also appear to be getting tempted into splurging on luxury trips if companies lend them credit on attractive terms.The...