SAN FRANCISCO - Affirm (NASDAQ: AFRM), a payment network known for empowering consumers, has recently teamed up with Brittain Resorts & Hotels to offer flexible payment options for hotel bookings. This collaboration allows guests at over 15 Brittain Resorts & Hotels properties to split the cost of their stay into monthly payments when they spend over $150, using Affirm's service at checkout.
The payment option presented by Affirm enables guests to divide the total cost into monthly installments for up to 18 months, with the full cost disclosed upfront. Affirm assures customers that they will never be charged more than the agreed amount, with no late or hidden fees attached. For instance, a $1,000 booking could be broken down into $64.76 per month over 18 months at an APR of 20%.
Brian Miller, VP of Sales at Brittain Resorts & Hotels, reported that the initial response from guests has been positive, noting an increase in overall spend per guest when Affirm is used. The company plans to extend this payment option to its call center bookings in the coming months.
Affirm's SVP of Revenue, Pat Suh, highlighted a 35% year-over-year growth in travel and ticketing for the quarter ending March 31. The partnership is intended to provide guests with a more flexible way to finance their accommodations without the burden of unexpected fees.
Brittain Resorts & Hotels joins an extensive network of Affirm retail partners, which includes prominent names such as Amazon (NASDAQ:AMZN), Casper, and American Airlines (NASDAQ:AAL). Affirm's checkout option has been known to boost sales, enhance average order values, and improve customer repurchase rates for its partners.
Both Affirm and Brittain Resorts & Hotels emphasize their commitment to providing customers with transparent and responsible financial products and services. The availability of Affirm's payment options is subject to eligibility and is offered through lending partners listed on affirm.com/lenders.
This new partnership reflects a growing trend in the travel industry, where consumers seek more flexibility in managing their expenses, particularly for leisure activities like vacations. The information for this report is based on a press release statement.
In other recent news, Affirm Holdings (NASDAQ:AFRM) Inc. has been the subject of various analyst ratings and regulatory changes. CFRA analyst Caydee Blankenship reaffirmed a Sell rating on Affirm's shares, citing anticipated slower growth and a more stringent regulatory environment.
The analyst also upheld revenue forecasts for fiscal years 2024, 2025, and 2026 at $2.3 billion, $2.7 billion, and $3.2 billion respectively. Meanwhile, BTIG initiated coverage on Affirm with a Neutral rating, highlighting the company's sustainable growth and the potential challenge of investor expectations.
RBC Capital maintained its Sector Perform rating on Affirm, focusing on the company's growth prospects and efforts to achieve profitability, despite the challenging market conditions. On the other hand, BMO Capital Markets adjusted its outlook on Affirm, reducing the price target to $46 from the previous $48, while retaining a Market Perform rating.
In regulatory news, the U.S. Consumer Financial Protection Bureau (CFPB) announced an extension of certain consumer protection rules typically applied to credit cards to the Buy Now, Pay Later (BNPL) industry, a sector in which Affirm operates. These recent developments highlight the dynamic environment in which Affirm continues to navigate.
InvestingPro Insights
As Affirm (NASDAQ: AFRM) continues to expand its partnerships and solidify its presence in the travel and hospitality sector, the company's stock has been subject to significant price movements. InvestingPro Tips indicate that analysts have recently revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's performance. Moreover, the stock has experienced a high return over the last year, with an impressive 85.1% price total return as of the latest data point.
InvestingPro Data further reveals a substantial revenue growth for Affirm, with the last twelve months as of Q3 2024 showing a 40.05% increase. This growth is echoed in their quarterly revenue growth, which stands at 51.23% for Q3 2024. Despite not being profitable over the last twelve months and the absence of dividend payments to shareholders, Affirm's liquid assets have managed to exceed short-term obligations, indicating a level of financial stability.
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