On July 30, Qantas announced that it had introduced a new online payment feature that allowed customers to book a flight and defer payment until closer to their departure date.

Qantas Group General Manager Sales and Distribution, Rob Gurney, said the introduction of Book Now Pay Later on the Qantas website, www.qantas.com, is designed to offer customers greater flexibility.

"When a customer books an international airfare* or a Fully Flexible or Business Class Australian domestic fare on www.qantas.com, they now have two payment options," Mr Gurney said.

"Customers can continue to pay immediately, or use the new facility to confirm their seat and then pay for it at a later date.

"Customers can now plan their travel on qantas.com in advance by booking their flight to ensure they don't miss out on the flight they want, and then having the option of paying for it later when their travel plans are further finalised."

"People choosing this new option will be advised the date for when full payment is required and also receive follow-up emails with details of how to make the payment online."

The availability of Book Now Pay Later and the length of time customers have to pay will depend on fare type and time until departure, with customers shown the date when full payment is due before deciding to proceed.

In order to secure a booking, customers will be charged a holding guarantee of AU$25 per passenger, Mr Gurney said. This amount is then refunded when a customer pays the full amount for their tickets online. Customers can choose to pay by credit card or BPAY before the final payment date.

Qantas.com is Australia's number one travel website according to Hitwise and Neilsen Net Ratings and receives over 5 million visits every month.

* Book Now Pay Later excludes Red e-Deal fares to New Zealand.