Can Layby Holidays Really Save Money?

International Traveller’s managing director, Quentin Long, crunched some numbers and found that for the right people, some layby holiday providers can make great financial sense, while others can cost you 66% more! Here he reveals his do’s and don’ts of layby travel.

Following a Mamamia article about layby holidays, sponsored by a company called LayAway Travel, I recently received many enquiries about this form of booking whereby a client places a deposit on a holiday and fixes the eventual full price.

Personally, I am not a fan of layby holidays for a simple business reason; they only make sense for the small percentage of us who are financially disciplined.

Some layby holiday programs can become predatory when travellers pay an inflated cost for the holiday or it becomes a financial burden when the traveller does not meet the payment plan.

It’s also worth noting that many holidays booked through a travel agent are in fact de facto laybys.

With that in mind, here are the major nuggets of layby-advice gold I have found…

Steer clear of online-only operators

There are a number of operators that offer travellers layby packages, either online or as a service offered by a travel agent.

My advice is to not use an online-only operator. I reviewed several and they were mostly so poor in the range of holiday offerings I didn’t investigate further; it is not something I would feel comfortable using for my holidays.

There was one exception, LayAway Travel. Travellers can choose a much broader range of hotels and resorts and therefore it is much easier to find the right holiday. I was impressed.

So I took the next steps and compared a Fijian holiday for a family of four booked through LayAway Travel versus Do-It-Yourself (DIY) booking.

Randomly, I chose the last week of January, purposefully avoiding high peak season like Christmas, since that’s never a fair comparison with sky high prices and no availability to 3rd-party operators.

By my calculations LayAway Travel would be 66% more expensive for this particular Fijian holiday.

This is not necessarily a direct comparison as there are different things to consider – you would need to pay for the airfares up front for the holidays I investigated, and maybe their cancellation policies would be different.

But the actual dollar numbers are real – through Layaway the total cost of the holiday would be $6055, while booking yourself (and paying for airline tickets upfront) the same holiday would have cost $3639.40. That’s an additional $2415.88 or 66.4%.

*Of course, prices change rapidly and fluctuate, but below are my findings at the time of writing.

Read the fine print

Like many deals that seem too good to be true, it’s often because it is. Before locking into a layby program, be sure to read the fine print so you’re aware of the ramifications if you can’t make payments in time. Be realistic about your own financial capabilities and any penalties you may incur.

A good example is Escape Travel – the retail travel agent group who have the most customers using a financial service to pay for their holidays. The service is fantastic for the right people, but potentially expensive for some.

It’s not technically a layby, but an interest-free finance option via a third party credit card with a 12-month interest-free period.

You put the transaction (in this case the holiday) on the credit card and then have 12 months to pay it off before you get charged interest. There is some fine print worth noting though – the holiday must be more than $999, there is a $99 annual fee for the card and you need to pass all the usual credit checks.

The danger is obvious. Those that are not great at managing their money arrive at the 12-month mark not having paid it all off and are now paying 22% p.a. for their entire holiday (yes, the whole amount not just the balance).

But for the financially disciplined it is a fantastic way to pay for a holiday; it is always better to have money earning you returns in your accounts than cash in someone else’s hands earning them returns.

My sources say that Escape’s layby service is particularly popular with baby boomers who can keep their superfund money earning interest for an extra 12 months, while still enjoying a holiday.

Another popular program that’s great for those who are good at managing their money is STA Travel, offering a layby service on products like Contiki tours and packaged holidays.

The deposits range from $99 to $250 with the same eight weeks prior to departure deadline for full payment. There are no other financial services and institutions involved.

Travel agents can be a layby – give yourself time to pay

Most travel agent bookings will require you to pay a deposit and then meet a deadline – typically you have two months prior to departure to pay the balance by. That sounds a lot like a layby, right?

Say you book the holiday eight months before you travel, you then have six months to pull the money together to pay for it. The same is for most cruises.

To make it work I suggest you set up a direct payment every month to make sure you have paid your holiday booking off in full before the deadline. Just remember to turn it off when you have made the final payment, we don’t want to pay more than we have to.

A side note, many ‘special deals’ have terms and conditions that require payment upfront or within seven days so it doesn’t apply to all travel.

Book with an accredited agent

If you book through a travel agent, make sure it is an ATAS (AFTA Travel Accreditation Scheme) accredited agent, which has been tested and approved by this third party industry body.

This stamp serves as an indicator of quality and professionalism, and should anything go wrong with your holiday layby, you have the added safety of having a national board with strict guidelines.

Accommodation ‘pay later’ options can help

Most website booking engines, particularly for accommodation, now have a ‘book now pay later’ option at checkout, which does mean you hold onto your cash a little longer.

As mentioned before, the longer you have cash in your accounts working for you, the better.

Protect yourself with credit card and insurance

Sometimes things don’t go to plan. There is always a danger that the layby company will go under before you have had your holiday and your money goes with it, particularly if the online provider is not based in Australia.

Always make sure you use a credit card to purchase travel as it will protect you – the card supplier will refund the money should the company go down.

In terms of protecting yourself, travel insurance is another must in case you need to change or cancel your booking – both will attract charges. In the worst case scenario you could lose all your money if you are late in changing plans.

As always, look at all the Product Disclosure Statements of any financial contract you enter, read the fine print, consult a financial planner and make decisions on spend that fit your budget today, not what you hope it will be tomorrow.

*The calculations

Lay away travel:
Per day $ 39.32
Total $6,055.28

DIY Now:
Accomm per night $404.26
Total $ 1,673.64

Flights
$1,585.76

Transfers
$380

TOTAL DIY:
$3,639.40

Total EXTRA for lay by:
$2,415.88

% Extra:
66.4%

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In conclusion

While layby travel isn’t for everyone, it’s a potential way for those who can’t foot the bill straight up to still enjoy the holiday they’ve always dreamed of. The important learning from this article is that it’s imperative you do your own research. Make sure you factor in the total costs, and if the layby bill winds up slightly higher than it would to pay up front, weigh up whether the final cost of the convenience of staggered payments is more important to you.

From sophisticated new sleeper trains and opulent hotel openings to the exploration of new frontiers, we’re now finding ourselves in our own gilded era of travel. These 21st-century travel experiences are leading the way.

If we were to turn back the clock 100 years, there was a real romance to travel – the dawning of a glamour-filled jet age, refined rail sojourns and first-class cruising where the voyage itself trounced the destination.

We’re feeling a similar excitement in the air about travel in 2026. Think state-of-the-art cruise liners allowing access to destinations formerly off-limits, resort launches where avant-garde architecture takes centre stage, and a return to the days of luxury locomotives. This reoccurrence of the advances, adventure and elegance of a bygone era has not only come full circle; it’s now superior.

How? Travel has become more mindful, intentional and accessible. This includes environmental initiatives by operators determined to leave less impact on the planet and a shift towards a deeper cultural exchange with the local communities we visit. Whether it’s exploring previously hard-to-reach cities such as Uzbekistan’s Khiva, staying with a family to experience village life in Nepal or discovering new frontiers in Antarctica, our round-up of ‘new golden age’ travel experiences is a snapshot of how we are travelling today, as well as into promising new horizons.

Exploring the emerging city of Khiva

The walled inner city of Khiva, Uzbekistan. (Credit: Getty/Mlenny Khiva)

Uzbekistan’s Silk Road city of Khiva used to be off the radar for many travellers, but 2026 has changed all that. You can thank a new bullet train service connecting Khiva to Bukhara and Samarkand, slashing the trip from the capital of Tashkent from 15 hours to under eight. Add renovations to Urgench International Airport, and interest in this fascinating city is rapidly on the rise.

Quick to react has been Golden Eagle Luxury Trains and The Samarkand Express which have added Khiva to their 2026 rail itineraries, while Cox & Kings has included the Central Asian city to its multi-country 2027 ‘Stans’ itinerary.

Check out Khiva’s preserved inner-walled fortress, the first UNESCO site in Uzbekistan, explore ancient minarets and ornate mausoleums, and try traditional fare at Terrassa Cafe & Restaurant. Looking for fancy digs? The Mercure Khiva is due to swing open its doors later in 2026.

Riding the rails on the Eastern & Oriental Express

inside the Eastern & Oriental Express — Onboard the train, rich fabrics are complemented by elm, cherrywood and teak marquetry. (Credit: Ludovic Balay)

Recapture the romance of rail travel through the tropics of Southeast Asia on the refurbished Eastern & Oriental Express, A Belmond Train, Southeast Asia.

The resurgence of train travel reflects how we are travelling today – slower and with a new appreciation for both scenery and cultural exchange. Include a large dollop of old-world glamour, and the three-night Wild Malaysia tour truly delivers. Winding its way deep into the Malay jungle, the journey makes plenty of pit stops for exploration along the way.

Having been resurrected from a 1970s sleeper, the luxury locomotive now comes replete with plush interiors of hand-cut marquetry dressed in oriental silks and embroidery – there’s even a Dior Spa. Watch the world go by from the Observation Car, indulge in fine wining and dining, kick up your heels in the Piano Bar, then snooze it all off in your sumptuous sleeper car.

Embracing Mother Nature in Peru

Travelling to Peru is like stepping into a kaleidoscope of contrasting cultures and landscapes. Whether you’re learning about shamanic natural remedies in the pre-Inca Colca Valley, cruising the wilds of the Amazon on a luxury river ship or discovering firsthand why the contemporary capital of Lima is celebrated for its culinary and artistic scenes, there are myriad reasons why this colourful country is topping wish lists.

One such experience is the Ultimate Peru by River and Rail journey (five days) by Abercrombie & Kent, available in 2026. This incredible river cruise allows you to truly connect with the jungle rhythms of the Amazon via skiff and on foot with in-the-know local guides, and includes nights onboard newly launched luxury riverboat Pure Amazon, an A&K Sanctuary.

Spot exotic creatures such as sloths, macaws, piranhas, and pink dolphins on the daily excursions, before juxtaposing these wild encounters with a return to pure pampering on the boat.

Seeking sustainable community experiences in Nepal

tharu woman — Tharu woman and master weaver Parbati Chaudhary in Bhada Village. (Credit: Bheem Thapa)

While Nepal has traditionally attracted visitors to traverse its majestic mountains – Everest and Annapurna in particular – travel experiences in this beautiful Himalayan nation are expanding.

Home stays, where you reside with Nepali families and take an active part in their daily lives, are a growing attraction. It’s a win:win for local youths – who took their country back after bloody protests in 2025 – wanting to stay in Nepal rather than moving abroad for work, as well as foreigners seeking a deeper cultural experience. Nepali women, Indigenous people and marginalised castes are also benefitting from home stays, upping the feel-good factor even further.

Leading the charge is Community Home Stay Network, which links travellers to local-family hosts. Travel off-the-beaten path to homes in areas including Tharu in the south, learn how to cook Nepali style, and take part in traditions such as making moonshine, dancing and weaving straw handicrafts.

Exploring new frontiers in Antarctica

an ice window at Wilhelmina Bay — A breathtaking ice window captured at Wilhelmina Bay on the Antarctic Peninsula. (Credit: Renato Granieri)

Gone are the days when a trip to Antarctica meant a perilous voyage through the Drake Passage on a vessel holding the mere essentials. Innovative cruise ships now offer a smooth and sophisticated passage to the White Continent, as well as experiences formerly off-limits.

Abercrombie & Kent’s 19-day Antarctica, South Georgia and Falklands: Holiday Voyage captures it all. Spot breaching whales and gracefully gliding albatrosses from the deck, before stepping onto this Narnia-like landscape with daily Zodiac excursions. Observe adorable penguin and fur seal colonies, visit Antarctic communities that were previously too remote, and get so close to colossal icebergs that you’ll feel humbled by their scale.

Silversea‘s Antarctica Fly Cruise voyages will soon include a stay at The Cormorant at 55 South, the southernmost hotel on Earth purpose-built to bring uncompromised comfort to guests travelling to Antarctica.

When it comes to protecting this fragile eco-system, the future is also looking bright: HX Expeditions has partnered with the University of Tasmania to create a world-first educational course allowing cruise guests to dive into Antarctic science and sustainability, while A&K pours funds into conservation efforts and uses energy-efficient hybrid ships – all in trademark luxury, of course.

Indulging in New Zealand’s exceptional dining

Ayrburn, Queenstown — The Ayrburn precinct serves up delicate dishes.

By welcoming the Michelin Guide to sample Aotearoa/New Zealand’s finest gastronomy for the first time, our cousins across the ditch have now become serious players on the world culinary scene.

And there’s never been a better time to experience NZ’s greatest gastronomy with the inaugural guide currently going to press. Sample haute cuisine in Queenstown with a side serving of theatrics by culinary director Paul Froggatt at Essence in the new ROKI Collection hotel, and pull up a chair at Amisfield for its delicious degustation experience under new chef Sung Peng, with the world-renowned restaurant slated to reopen in July.

And it’s not just Queenstown holding all the culinary cards. The Michelin inspectors travelled to rate the best epicurean artistry in Tāmaki Makaurau/Auckland, Te Whanganui a Tara/Wellington and Ōtautahi/Christchurch against the world’s most renowned restaurateurs (bring loose pants).

Bedding down at design-led hotels and farm stays

a woodfired sauna at Azuma Farm Koiwai — A woodfired sauna deepens the meditative state at Azuma Farm Koiwai. (Credit: Azuma Farm Koiwai)

New grand dames on the global hotel stage are receiving a standing ovation for their triumphant 2026 openings.

Return to old-world elegance at the Orient Express Venezia, a reimagined former 15^th-century royal residence set in Venice’s Palazzo Dona Giovannellii. It certainly makes for a regal stay, with grand Neo-Gothic windows and restored Baroque splendour blending seamlessly with modern luxury flourishes. Also bringing the fantasy factor is France’s Zannier Île de Bendor on a petite private island off the Provençal coast. Overlooking the Mediterranean Sea – and with three luxe, design-led accommodation concepts to choose from – this resort exudes golden-era glamour.

In a breath of fresh air, we’ve also seen an uptick in farm stays. Trade the urban rush for a rambling rural retreat at Sibbjäns, Sweden’s first boutique farm stay, or opt for horseback riding followed by woodfired saunas on the sprawling eight-hectare Azuma Farm Koiwai in Japan.

Cruising the Danube on a festive Eastern Euro adventure

The magical Pécs Christmas Market in Hungary. (Credit: Emily Murphy)

Dreaming of a white Christmas? While floating past snow-dusted, fairytale cities on a river ship in Eastern Europe makes for an amazing voyage, when you add the magic of Christmas the whole experience becomes, well, more magical.

From twinkling trees and tinsel to red-nosed reindeer and wreath decorations, the festivities greet you the moment you step aboard AmaMagna by AmaWaterways. The ship then spirits you away along the Lower Danube for a seven-night Gems of Southeast Europe adventure from Romania to Hungary.

Explore Bulgaria’s medieval city of Veliko Tarnovo, glide into the dramatic Iron Gates crossing into Serbia; and sip on fine wines at Croatia’s Kast Winery (one variety made famous by Queen Elizabeth II). The highlight? For many it’s wandering the shimmering Christmas markets in Hungary’s Pécs. Peruse stalls selling unique handicrafts, try the traditional treat of kürtőskalács (chimney cake), and warm your cockles with a cup of mulled wine.

Delving into the buzzing city of Beijing

Lama Temple, Beijing — Calm and chaos at Lama Temple in Beijing. (Credit: Natasha Bazika)

Walking the line between its imperial past and a frenetic, futuristic present – Beijing is an exciting city to dive into.

If you want to be centrally located, the palatial Peninsula Beijing is hard to beat. From here, strap in at street level for a stroll among the city’s famed hutongs (ancient alleyways), pausing to taste traditional delicacies such as jianbing (savoury breakfast crepe) and dumpling soup. Then scope out the narrow lanes dotted with siheyuan courtyard homes (there are only 1000 left), and if you love to shop, head to Taikoo Li Sanlitun for a mix of luxury brands and local labels.

And it wouldn’t be a well-rounded trip to this history-rich city without experiencing its highlights reel. Admire golden-topped architecture in the Forbidden City, take a hike on the Great Wall of China and pay a visit to Tiananmen Square for both remembrance and observation on how it operates today.

Embarking on a round-the-world cruise

Can’t decide where to go on a cruise? On a round-the-world voyage you can live out all your dreams at sea.

It’s not a new idea – the first world cruise occurred more than a century ago on Cunard’s RMS Laconia in 1922 – but a reimagining. If you don’t have a spare year up your sleeve, you can now join for specific legs of the journey (unlike the 1922 trip), and ships have been modernised with sustainability measures, contemporary designs and a less formal feel.

Queen Anne, also by Cunard, cruised the world in 2026 with guests joining at handpicked ports, including in Central America for the extraordinary experience of crossing the Panama Canal. If you want the full adventure by circumnavigating the globe, Queen Anne will set sail on another world voyage in 2028.

Discovering the joys of small-group travel in Spain

Intrepid Travel's olive oil and wine tasting at Molino El Vínculo, Grazalema — Sample organic wine and olive oil on a tasting tour in Molino El Vínculo in Grazalema with Intrepid Travel. (Credit: Intrepid Travel/Tim Luck)

Small-group touring is a travel trend currently soaring, with many embracing it as an authentic, intimate and insightful way to visit a country – with VIP benefits to boot.

The small-group format, typically capped at five to 15 guests, is now accounting for around 62 per cent of group travel worldwide. And operators such as Intrepid Travel, APT Luxury Travel and Janesco Travel are among the frontrunners in this space, handling all navigation and insider experiences within an intimate group led by expert guides.

Seeking a Spanish sojourn? Small-group journeys to the vibrant southern Andalusia region are now topping bucket lists. Be mesmerised by flamenco dancers from a professional dance school (rather than touristy versions), learn how to make authentic sangria with a private class, skip queues at the Real Alcázar of Seville royal palace, and score a seat at the best Andalusian restaurants, sans waitlist.

Learning from the past in Japan

inside the Nagasaki Atomic Bomb Museum — The Nagasaki Atomic Bomb Museum presents a sobering dive into the nuclear event. (Credit: Eleanor Edström)

If you’ve ever wondered what it’s like to experience a war-time atomic bomb, hopefully the closest any of us will ever get is a visit to Nagasaki.

While on a cruise excursion to the Japanese city aboard the Diamond Princess, you can visit the fascinating hypocentre of the Second World War bomb dropped to widespread annihilation in 1945. While there is no doubt this is heavy material to digest on a tour, it comes with a message of hope – that the horror of a nuclear war should never happen again.

There is also much more to this 11-day Japan Explorer Cherry Blossoms with Princess Cruises voyage. Witness the world’s most active volcano in Kagoshima, join a traditional tea ceremony in Kyoto and marvel at Mt Fuji in Shimizu. Also don’t miss the onsen experiences onboard the ship or its many mouth-watering local culinary offerings. Next departure is March 2027.

Supporting a typhoon-ravaged community in Vietnam

Zannier Bai San Ho — Time to kick back at Zannier Bãi San Hô. (Credit: Amber Hunter)

When typhoon Typhoon Kalmaegi ripped through Vietnam’s south-central coast in November 2025, it left a devastating trail of destruction.

And Zannier Bãi San Hô, an expansive 98-hectare beachfront resort, took a direct hit. An incredible five-month clean-up and restoration has now seen the Green Globe-certified retreat reopen, thanks in large part to the local community who rallied to help rebuild it. The support goes both ways; the 180-strong resort staff is made up of 177 locals – their livelihoods dependent on it.

You can help by simply booking a stay here. It’s hardly a punish, when you consider the beauty and luxury of this place; picture private pool villas and powder-white beaches. Take to the sapphire waters for water sports, visit local fishing villages and sweat it out at the onsite fitness centre. Or, if relaxing’s more your jam, simply loll by the pool with a good book.

Can layby holidays really save money?