Go into Debt for a Vacation: Attitude and Determinant Factors of Tourists to Use the “Pay Later” Payment Method

Usep Suhud; Doni Sugianto Sihotang; Mamoon Allan; Wong Chee Hoo; Serkan Benk; Tamer Budak; Juliana Juliana; Muaz Azinuddin; Bussalin Khuadthong; Somnuk Aujirapongpan

doi:10.32479/irmm.22696

Authors

Usep Suhud Faculty of Economics and Business, Universitas Negeri Jakarta, Jakarta, Indonesia; & Faculty of Applied Social Sciences, Universiti Sultan Zainal Abidin, Kuala Nerus, Malaysia,
Doni Sugianto Sihotang Faculty of Economics and Business, Universitas Negeri Jakarta, Jakarta, Indonesia,
Mamoon Allan Faculty of Tourism and Archaeology, University of Jordan, Amman, Jordan,
Wong Chee Hoo Faculty of Business and Communications, INTI International University, Nilai, Malaysia,
Serkan Benk Department of Public Finance, Inonu University, Inonu, Turkey,
Tamer Budak Nottingham University Business School, Nottingham, England,
Juliana Juliana Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Jawa Barat, Indonesia,
Muaz Azinuddin Faculty of Applied Social Sciences, Universiti Sultan Zainal Abidin, Kuala Nerus, Malaysia,
Bussalin Khuadthong Faculty of Management Science, Nakhon Si Thammarat Rajabhat University, Nakhon Si Thammarat, Thailand,
Somnuk Aujirapongpan Faculty of Management Science, Silpakorn University, Phetchaburi, Thailand.

DOI:

https://doi.org/10.32479/irmm.22696

Keywords:

Consumer Behaviour, Sustainable Marketing, Pay Later Payment App, Debt Attitude

Abstract

There is still a lack of research regarding tourism payments made using the option 'Pay Later'. This research investigates the attitude of tourists toward debt and variables that affect the level of debt load when tourists decide to choose "Pay Later" as a payment option. Data collection was carried out in Jakarta, Indonesia through a two-stage process. In the quantitative approach of the first phase, 229 respondents were sampled using an appropriate sampling technique. A quantitative approach was then used in the second phase, from which 228 participants were selected using a convenient sampling technique. From the positive feelings on the 'Pay Later' payment option noted in the qualitative analysis, the participants expressed satisfaction, convenience, and ease of use. Secondly, participants perceive "Pay Later" as an alternative finance option that could enhance their enjoyment of their travels. Quantitatively, through exploratory factor analysis, two dimensions influenced the levels of indebtedness among the tourists: A range of indication amenities at the destination, user evaluations, discounts, high-quality services, and conditions of payment were included in the Priority 1 consideration; while among the Priority 2 aspects were the administrative expenses, interest rates, program providers, and instalment amounts. The present research highlights the reasons why debt is accumulated when the "Pay Later" payment option is used and thus provides enlightenment into understanding how the travellers cope with handling their money. Industry and academia can meet the needs of the travelling population through tailored financial services, informed by a stronger evidence base of this nature. Therefore, this study aligns with SDG 8: Decent Work and Economic Growth and SDG 12: Responsible Consumption and Production through the improved financial inclusions in tourism, which will further contribute to responsible borrowing practices toward the realization of economic growth in a sustainable manner, besides encouraging responsible consumer spending.