Pay later is becoming a popular travel tool. In 2019, $10 million was spent on travel-related "buy now, pay later." However, by 2021, $800 million was spent on travel-related buy now, pay later.

With pay later becoming more widely available and used for travel expenses, we'll dive into what you need to know to see whether this financing option is a smart money move for you.

There are different types of pay later travel options

“Pay later” travel is a broad term, but it generally falls into one of two categories:

Buy now, pay later services where you pay for your travel in equal installments, sometimes with added interest. Examples include travel booked using Affirm and Uplift.

Travel that you book in advance but don’t pay for until later. An example is Hotels.com, which will sometimes let you reserve a room and pay for it at check-in.

Basically, as long as you’re not paying in full for the travel upfront, it qualifies as pay later travel.

Some travel companies offer pay later travel options directly

There are several ways to book pay later travel, including booking directly with certain airlines, hotels and other travel companies that offer pay later at checkout, including:

Alaska Airlines.

CheapOair.

Expedia.

Hilton.

Priceline.

Southwest Airlines.

United Airlines.

Some of these companies offer pay later travel through a partner, and others offer buy now, pay later travel directly.

For instance, Southwest offers buy now, pay later through Uplift, whereas Hilton allows you to book certain reservations by putting a credit card down and then paying in full when you check out.

There are companies that specialize in pay later that you can use for travel

If you want to use pay later travel for your trip and the airline, hotel or travel company doesn’t offer pay later travel directly, you may be able to pay for your travel later by using a company that specializes in that option — companies like Affirm, Zip, Uplift and Afterpay.

You may also be able to use your credit card for pay later travel. For instance, Chase has a service called My Chase Plan where you can split a purchase of $100 or more into equal monthly installments for a fixed monthly fee instead of credit card interest.

Pay later travel may cost you more

Using a pay later service may cost you more money overall, so be sure to read the fine print before opting for pay later travel.