Thursday, November 24 2022

Amadeus ordered ‘2022 Consumer Travel Spending Priorities‘ a survey of 4,500 consumers from France, Germany, the UK, the US and Singapore to understand their expected spending habits over the next twelve months.

Consumers confirmed their desire to travel despite economic uncertainty, with “international travel” ranked as the highest priority among a selection of six discretionary spending categories. 42% of respondents said international travel is a high-priority spending area for the coming year, far ahead of fashion, restaurants and big-ticket items like home renovations.

Discretionary spending area

“High priority” for the next 12 months

International travel, e.g. vacation

42%

inner journey

32%

Online subscriptions, for example Netflix or Amazon Prime

28%

Eating out, for example in a restaurant

27%

Fashion, for example new clothes

25%

Expensive items, such as a new car or household furniture

20%

On average, consumers estimate they will spend $2,670 on international travel over the next 12 months, which is broadly in line with what they spent in 2019 ($2,780 on average). Many travelers plan to spread the cost over multiple instalments, reducing exposure to costly currency transactions and tapping into previously collected loyalty points.

David Doctor, Executive Vice President, Payments, Amadeus, said:“This research clearly shows that consumers are willing to forego spending in other areas of their lives to accommodate travel this year. But that’s not the end of the story. The industry will need to look ways fintech can also make travel expenses more transparent to help travelers manage their spending.”

Travelers turn to fintech for more flexibility

In the face of economic uncertainty, travelers are embracing fintech to reduce international payment fees and flexibly finance their trips.

Three-quarters of respondents (75%) said they were more likely to choose an installment payment option like “Buy now, pay later” to fund travel in the coming year. This compares to 44% who are more likely to use a credit card and 26% who are more likely to turn to “payday loans“, where short-term borrowing usually carries high interest rates. . 47% of travelers said they plan to spend the loyalty points they previously collected to pay for trips.

Travelers are also embracing new fintech options with 48% more likely to try prepaid debit cards that hold multiple currencies to avoid exchange fees when paying abroad, and 49% saying they are now interested by co-branded cards that earn loyalty points.

In the current environment, 73% of travelers say they are more likely to pay attention to currency exchange fees and costs associated with international travel and 56% are more likely to choose a travel provider that allows them to pay in their own currency, with transparent exchange fees. .

The doctor continued:“The demand for flexible payment options like Buy Now Pay Later in travel is extraordinarily high. The industry is eager to meet this demand, but it should do so responsibly, with thorough risk management in place. Savvy travelers are adapting to limit the costs involved in We see in our own data that more and more travelers are choosing to pay in their local currency on all airlines using our FX Box technology.

To download the full report, click here.

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