blog post

With the holidays just around the corner, I've noticed several retailers are advertising that layaway plans are back.  Widely popular in the 1970's, layaway is an easy way to do holiday shopping wihtout using credit.  Instead, a modest down payment is required and weekly or monthly payments are due in order to get the merchandise just in time for the holidays.

What many people don't realize is that a vacation is one of the few purchases that have always been available by layaway.  Although the travel industry doesn't use the term 'layaway', it has always allowed travelers to place a modest deposit and make payments over time.  Complete vacation packages with airfare and hotel often require a deposit as low as $150 per person.  Cruise deposits vary by cruise line and length of cruise with 3 night cruises typically requiring just $100 per person and a 7 night cruise requiring $250 per person.  Sometimes, tour companies, cruise lines, or travel agencies may have a special promotion offering an even lower intiial deposit.

These programs are always availble from your professional travel advisor but may not be available from online travel companies where full payment is often required at the time of purchase.  Prices are usually competitive if not better when going through a travel advisor since many promotions are not available to the general public or through online travel retailers.

Once paid, the initial deposit locks in a traveler's rate so if the price increases, the reservation is safeguarded.  If the price drops after the initial payment, a traveler may be able to gt a rate adjustment depending on the cruise line or tour company.  (With land packages, rate changes are only allowed when trip insurance was purchased at deposit.  However, all trip insurance policies don't offer price protection coverage so be sure to ask before you buy.)  Insurance policies vary by tour company and cruise line, so it's best to ask about the details for the 'what if' situations before any money is paid.

After the required minimum deposit is made, passengers are free to create their own 'layaway' program as long as the balance is paid no later than the final payment due date.  Typically, the outstanding payment is due anywhere from 45 to 90 days prior to departure date depending on the tour company or cruise line.

Without question, the best vacation 'layaway' plans ar for those vacations that are planned early, well before final payment due date.  The farther out a trip is planned, the longer a traveler has to pay toward it and the more flexible the payment arrangements can be made.

In essence, buying a vacation for a loved one can be one of the best holiday gifts ever given or received.  Unlike traditional gifts that have a limited shelf life, expiration date, or depreciating value, the gift of travel has the ability to create memories and experiences that friends and families share for the rest of their lives.