International travel remains a high priority
New research from travel technology leader Amadeus has found that people still want to travel despite economic uncertainty.
According to the Consumer Travel Spend Priorities survey, 42% of respondents worldwide said international travel is a high-priority spending area for the coming year, far higher than fashion, restaurants and big-ticket items like home renovations.
The data also showed that 32% of people considered domestic travel a high-priority spending area over the next 12 months, while online subscriptions (28%), restaurants (27%) and fashion (25 %) completed the first five responses.
“This study clearly shows that consumers are willing to forego spending in other areas of their lives to travel this year,” said Amadeus Executive Vice President David Doctor. “But that’s not the end of the story. The industry will have to look for ways in which fintech can make travel costs more transparent and help travelers manage their expenses.
On average, respondents estimate they will spend $2,670 on international travel over the next year, which is close to what they spent in 2019 (an average of $2,780). Many travelers plan to spread the cost over multiple installments and tap into previously collected loyalty points to ease the burden.
Around 75% of travelers said they would choose an installment payment option like “Buy now, pay later” to fund their holidays in the coming year, with 44% more likely to use a card credit and 26% use payday loans.
“The demand for flexible payment options like Buy Now Pay Later in travel is extraordinarily high,” Doctor continued. “The industry is eager to meet this demand, but must do so responsibly, with thorough risk management in place. Savvy travelers are adapting to contain travel costs. 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.
Another 47% of respondents said they planned to spend the loyalty points they collected to pay for their trip. 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.
For the latest travel news, updates and deals, be sure to subscribe to the daily TravelPulse Newsletter here.