06 Aug 2022 By travelpulse
A new study from leading travel technology company Amadeus found that people still desire to travel despite the economic uncertainty.
According to the Consumer Travel Spend Priorities survey, 42 percent of respondents from around the world said international travel is a high-priority spend area for the coming year, far higher than fashion, eating out and big-ticket items like home improvements.
Data also showed that 32 percent of people considered domestic travel a high priority spend area over the next 12 months, while online subscriptions (28 percent), eating out (27 percent) and fashion (25 percent) rounded out the top five responses.
"This research clearly shows consumers are prepared to forego spending in other areas of their lives to accommodate travel this year," Amadeus Executive Vice President David Doctor said. "But that's not the end of the story. The industry will need to look for ways that fintech can make travel costs more transparent as well as help travelers manage their spend."
On average, respondents estimate they will spend $2,670 on international travel over the next year, which is close to how much they spent in 2019 (a $2,780 average). Many travelers plan to spread the cost across installments and dip into loyalty points previously collected to ease the burden.
Around 75 percent of travelers said they would choose a pay-by-installment option like 'Buy Now Pay Later' to fund their vacation over the coming year, with another 44 percent more likely to use a credit card and 26 percent using 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 it should do so responsibly, with thorough risk management in place. Savvy travelers are adapting to limit costs involved in travel. We see in our own data that more travelers are choosing to pay in their local currency across the airlines using our FX Box technology."
Another 47 percent of respondents said they plan to spend any loyalty points they've collected to pay for their trip. Travelers are also embracing new fintech options, with 48 percent more likely to try pre-paid debit cards that hold multiple currencies to avoid FX fees when paying abroad.
For the latest travel news, updates and deals, be sure to subscribe to the daily TravelPulse newsletter here.
copyright © 2022 Sunshine Coast Accountants. All rights reserved.