Travel Companies Start Lending Consumers Money to Book Trips

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 new installment products — called layaway when paid off prior to trip and a loan if paid off after — have been common in developing countries. But the concept hadn't gained cachet in the United States until the past year. What's new is the rise of "fintech," or financial-technology companies that aren't banks, but that use software to provide financial services to consumers, sometimes in partnership with banks. A few fintech startups — most pr