The number of people ranking travel as a ‘high priority’ for the coming 12 months increased by the largest margin, rising to 47 pc, up 12 pc year-over-year
International travel was ranked by consumers as the highest discretionary spend priority from amongst six categories, says survey Consumer travel spend priorities by Outpayce, an arm of Spanish IT provider for the global travel industry, Amadeus.
According to the survey, travellers expect to spend significantly more on international travel during the coming year with average expected spend of USD 3,422, an increase of USD 753 per consumer, or 28 pc compared to last year.
In a press statement, the company says that consumer demand for travel is expected to remain robust over the next 12 months despite continuing economic uncertainty.
All spend categories edged up compared to last year’s study pointing to a tentative jump in overall consumer confidence, says the study. However, the number of people ranking travel as a ‘high priority’ for the coming 12 months increased by the largest margin, rising to 47 pc, up 12 pc year-over-year, it adds.
Jean-Christophe Lacour
“This year’s research shows that consumer demand for travel remains strong. People are clearly prepared to spend savings that may have been amassed during the pandemic, and to make sacrifices in other areas, to dedicate more funds to international travel. But there’s no room for complacency, travel companies that clearly price their products in the traveller’s native currency, offer flexible ways to pay and focus on delivering a smooth retail experience stand the best chance of converting shoppers into paying customers,” says Jean-Christophe Lacour, SVP Global Head of Products Management and Delivery, Outpayce.
The study collates that in 2022, 75 pc of consumers said they were ‘more likely’ to use buy now pay later (BNPL) services to fund travel. This number dropped to a still significant 33 pc of travellers being ‘more likely’ to choose BNPL to fund travel over the coming twelve months, suggesting continued demand for BNPL, although at a reduced growth rate.
The statement adds that this trend is evident across all forms of short-term credit with significantly fewer consumers saying they are ‘more likely’ to use credit cards or payday loans to fund travel this year.
Instead, 40 pc of consumers said they plan to pay for travel by dipping into their savings and a third confirmed they will reallocate spend from areas like clothing and home improvement to fund travel plans, says the survey.
It goes on to say that travellers value fintech services that offer transparency and help them avoid foreign exchange (FX) fees when travelling. Notably, 66 pc of travellers said they would be more likely to select a travel company that allowed them to pay in their own currency so they could better understand the cost of travel, which reflects a notable jump of 18 pc compared to last year. 68 pc of respondents said they will pay close attention to FX fees incurred when travelling.
