Offering payment plans is essential to understand how deposits impact installment amounts. This article delves into how setting minimum and flexible deposits influences the calculation of payment installments, allowing you to effectively manage and structure payment options for your travelers.
What is Minimum Deposit?
Minimum Deposit is a required payment for travelers to book and pay for their trip in installments. This deposit is how the traveler who is paying in installments secures their spot on the trip.
💡 Pro Tip: Ensure the deposit you collect can help cover any upfront supplier costs related to reserving the traveler's spot on the trip.
What happens when I set the minimum deposit?
The minimum deposit set for the package is the required amount that all travelers purchasing the package using a payment plan must pay.
Packages with installment plans are required to have a minimum deposit of at least $35. This requirement ensures that the traveler is committed to going on the trip and the organizer can mitigate financial risk.
If you are paying the fee, the Pricing Calculator will be activated to ensure you receive the expected deposit amount minus any fees.
What happens if a traveler pays more than minimum deposit?
If a traveler increases their deposit amount at checkout, then their monthly installment amount will decrease. See example below when the initial deposit is updated.
Example Explained
The minimum deposit for this trip is $220. By default, all travelers paying in installments are required to pay at least $220 to book the trip.
In the second image, the traveler has chosen to pay a $300 initial deposit. As a result, their installment amount is reduced from $165.36 to $152.03.
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