A growing way to meet changing travel demand
Adventure travel is no longer a niche extra for a small group of customers. It is becoming a mainstream spending priority for many UK households, even while wider budgets remain under pressure. Recent UK research shows that 26% of adults now prioritise travel over saving for a home, rising to 31% among 18 to 24 year olds. At the same time, ABTA reports that 68% of UK adults plan to travel abroad in 2026, with many expecting to spend the same or more than before. Holidays are also one of the top planned spending priorities, with average budgets reaching £5,517 for longer trips and £2,348 for short breaks.
For businesses selling adventure holidays, activity breaks, outdoor trips or experience-led travel, that matters. Customers still want to book, but they may prefer to spread the cost rather than pay a large amount upfront. Offering finance can make higher-value trips feel manageable, improve conversion rates and support more confident purchasing decisions when it is done properly.
Finance should never be used to pressure a booking. It should help customers understand their options and budget sensibly.
This guide explains how finance for adventure holidays works, which businesses it may suit, the main benefits and risks, and the practical points to check before you put any solution in front of customers.
Which travel businesses may benefit most
This approach is most relevant for UK businesses that sell higher-value leisure travel where the upfront price can be a barrier. That could include adventure tour operators, activity holiday brands, specialist travel agencies, holiday parks with premium packages, outdoor experience providers, glamping and lodge operators, ski and diving operators, or businesses packaging accommodation with guided activities and equipment. It may also suit firms selling repeat travel products, such as annual trip programmes or multi-break memberships.
In simple terms, if your average booking value is high enough that customers often hesitate, ask about instalments, or abandon their basket before checkout, finance may be worth considering. It is especially relevant where your target customer wants the trip but prefers predictable monthly payments over one large card payment.
What offering finance usually means in practice
Offering finance for adventure holidays usually means giving customers a regulated way to spread the cost of their trip over time. In practice, that often falls into one of three broad models: interest-free instalments over a short period, longer-term credit with interest, or buy now pay later arrangements where payment is deferred and then collected in stages.
The exact structure depends on the booking value, the finance provider you work with, the type of customer journey you want, and the regulatory model behind it. Some providers pay your business upfront, less any agreed fees, while they collect from the customer under the credit agreement. Others support staged payment systems that are not always classed the same way as consumer credit, depending on how they are arranged.
This distinction matters. If a product is regulated credit, the provider and the sales process must meet strict rules around affordability, disclosures and fair treatment. If it is an unregulated instalment arrangement, you still need to present it clearly and avoid giving a misleading impression.
For travel businesses, finance can be used for overseas adventure trips, UK staycations, activity-led city breaks, premium beach packages with excursions, and outdoor experiences. That is particularly relevant now, as UK travellers increasingly choose purpose-led, hobby-based and activity-based holidays, with 32% seeking those types of trips.
How to put a finance option in place
The safest route is usually to work with an established finance provider or payments partner that already supports travel or leisure businesses. Before you launch anything, review your average booking values, cancellation rates, customer demographics, seasonality and refund processes. These points affect whether finance will be commercially worthwhile and operationally workable.
You will also need to map the customer journey carefully. Customers should see the full trip price, any deposit requirement, the total amount payable, the repayment schedule, interest charges if any, and what happens if they cancel or change the booking. If the holiday is supplied by your business but financed by a lender, both sides of the arrangement should be easy to understand.
A straightforward implementation usually involves these steps:
- Choose a suitable finance or payment partner.
- Confirm whether the product is regulated credit and who carries the regulatory responsibilities.
- Check how commissions, fees, refunds and chargebacks work.
- Build clear website wording and checkout disclosures.
- Train sales staff to explain options factually without pressure.
- Test cancellation, amendment and complaint handling before launch.
UK travel demand supports the case for doing this well. Nearly 80% of UK travel marketers expect revenue growth in 2026, and businesses are investing to capture that demand. Finance can be part of that growth plan, but only if the process is transparent and customer-friendly.
Why many operators are exploring it now
The commercial case is linked to how people are choosing to spend. UK consumers are still prioritising holidays, even when they feel cost-of-living pressure. One study found that one in five people see holidays as their top financial priority for 2026. Another shows travel budgets clustering around £2,000 to £3,499 annually, especially among 25 to 34 year olds, suggesting spending is being reallocated rather than cut.
For adventure holiday businesses, that creates a clear opportunity. Customers may still want premium itineraries, specialist equipment, guided experiences or long-haul activity trips, but they often prefer more flexible payment options. This can help businesses convert demand that might otherwise be lost at checkout.
There is also strong evidence of sustained appetite for outdoor and experience-led travel. Outdoor recreation trips account for £8.4 billion of spending across Great Britain, while spending on recreational and sporting services has risen sharply in recent years. Domestic demand remains important too. Staycations, holiday parks and shorter UK breaks continue to perform as consumers balance cost with experience.
The key point is not that customers want debt. It is that many want manageable payment choices for trips they already value highly.
For businesses, the potential benefits include stronger conversion, higher average order values, access to broader customer segments, and better support for repeat-booking models where travellers take several trips a year rather than one annual holiday.
Benefits and trade-offs at a glance
| Potential advantage | What it can mean for your business | Possible drawback | What to check |
|---|---|---|---|
| Improved affordability | Customers can spread the cost of expensive trips | Some customers may overcommit | Clear affordability messaging and fair presentation |
| Higher conversion rates | Fewer drop-offs at checkout for high-ticket bookings | Finance setup fees can reduce margin | Provider costs, commission terms and net profitability |
| Increased average booking value | Customers may choose upgraded packages or add-ons | Larger refunds can become more complex | Refund workflow, lender process and cancellation terms |
| Access to younger travel buyers | Useful where customers prioritise travel over other savings goals | Younger customers may be more payment-sensitive | Eligibility criteria and customer suitability |
| Better support for repeat travel | Useful for multi-trip or membership-style models | Ongoing admin can increase | Internal processes and customer service capacity |
| Competitive differentiation | Helps match what customers increasingly expect online | Poor wording can create compliance risk | Website disclosures, staff training and approval journey |
| Stronger domestic and overseas appeal | Can support both UK breaks and higher-cost abroad trips | Demand can still be seasonal | Forecasting, cash flow and finance uptake rates |
Points that deserve extra care
Finance can be helpful, but there are several areas where travel businesses need to slow down and check the detail. First, be clear on regulation. If you are introducing regulated credit, there may be Financial Conduct Authority considerations, financial promotions rules, and responsibilities around how finance is explained. You may need specific permissions or to act as an appointed representative, depending on the model. Always take legal or compliance advice before launch.
Second, look closely at cancellations, amendments and insolvency scenarios. Travel bookings can change more often than many retail purchases. Your terms should explain what happens to the finance agreement if dates move, if part of a package is unavailable, or if the customer cancels within any allowed period.
Third, avoid presenting finance as the default choice or the easiest emotional route to booking. That can create both conduct and reputational risk. Customers should never feel nudged into borrowing for a holiday they cannot comfortably afford.
Fourth, compare the total economics carefully. A finance offer may lift conversion while still reducing margin after provider fees, support costs and refund handling.
Finally, think about trust. In a YMYL area, clarity matters more than clever marketing. Customers should understand the total cost, who they are borrowing from, what checks apply, and what support is available if they struggle with payments.
Other routes worth considering
In-house staged payments before departure
Customers pay a deposit and clear the balance in instalments before travel, without formal credit where structured appropriately.Layaway-style booking plans
The trip is reserved only once agreed payments are made, which may reduce credit complexity but can be less flexible for customers.Membership or subscription models
Useful for repeat travellers who want regular short breaks or activity packages across the year.Low-deposit offers
A smaller initial payment can reduce friction without introducing a full finance journey.Partner-issued credit through a travel finance specialist
A third party handles underwriting and collections, which can reduce operational burden.Short-term promotional pricing
Limited-time package discounts may improve conversion for price-sensitive customers without involving borrowing.Corporate or group payment plans
Useful for schools, clubs, associations or team-building travel where one organiser needs structured payment timing.
Common questions from travel businesses
Possibly. It depends on whether you are introducing customers to regulated consumer credit and how the arrangement is structured. This is an area where legal or compliance advice is important before launch.
Is buy now pay later suitable for holidays?
It can be, but suitability depends on booking value, cancellation risk, customer profile and the provider's rules. The customer journey must make costs and obligations clear.
Will finance increase bookings?
It may improve conversion where upfront cost is a barrier, but results vary. You should test uptake, margin impact and refund complexity rather than assume it will always boost profit.
What types of trips suit finance best?
Higher-value trips usually benefit most, such as long-haul adventure tours, specialist activity breaks, premium UK outdoor stays, and multi-person family bookings.
Can finance work for UK staycations as well as overseas travel?
Yes. Domestic adventure breaks, holiday parks, glamping and activity-led short trips can all be suitable where the booking value and customer demand support it.
What should customers see before they apply?
They should see the cash price, deposit if applicable, repayment amount and schedule, interest or fees, total payable, eligibility points, and any cancellation or amendment implications.
What if a customer cancels after taking finance?
That depends on your booking terms and the lender's agreement. Your process should explain refunds, partial refunds and any continuing liability clearly.
Is there strong demand for adventure travel in the UK market?
Yes. Research points to sustained demand for overseas travel, long trips, short breaks, city breaks, beach holidays and hobby-led activity travel, alongside resilient spending in outdoor recreation.
Where Switcha can support your research
If you are comparing ways to offer finance to your customers, Switcha can help you review the market more clearly. As a UK price comparison website, we focus on making complex choices easier to understand in plain English. That means helping businesses compare providers, costs, features and practical considerations without hype.
We believe finance should be transparent, proportionate and easy to assess. If you are exploring customer payment options for adventure holidays, the right starting point is not the cheapest headline rate alone. It is the full picture, including compliance, customer experience, refund handling and long-term value.
Important note before you go live
This guide is for general information only and does not amount to legal, regulatory or financial advice. Offering finance to consumers can involve FCA rules, financial promotion restrictions and contractual obligations that vary by business model and provider. Before introducing any finance option, take appropriate professional advice and carry out due diligence on the lender, payment partner and your own sales process. Customers should always be encouraged to borrow only when they can afford to repay comfortably.
