admin Recent consumer research conducted by Amadeus payments subsidiary Outpayce has revealed an encouraging trend in travel priorities and spending intentions. The study surveyed 4,500 consumers across the UK, France, Germany, the US, and Singapore, shedding light on their discretionary spending plans for the next year.
Promising Trends
Surprisingly, international travel emerged as the top priority for these consumers, indicating an undeterred enthusiasm for exploration despite economic uncertainties. The study discovered that 47% of respondents rated international travel as their highest discretionary spending priority, marking a significant increase of five percentage points from the previous year’s survey. This heightened interest in travel was also evident across other areas of discretionary spending, suggesting an overall surge in consumer confidence.
The survey uncovered the extent to which respondents are willing to invest in their wanderlust, with an impressive 28% increase in anticipated spending on international travel compared to the previous year. On average, respondents are expecting to spend $3,422 on their travel endeavours, up by $753 from last year. To fund their adventures, 40% of respondents are prepared to dip into their savings, while 33% plan to cut spending in other areas and 29% are open to working longer hours.
BNPL Trends for Travel
Interestingly, the survey indicated a shift in attitudes towards short-term credit for travel, with a decline in the popularity of Buy Now, Pay Later (BNPL) services. Only 33% of respondents expressed a willingness to use BNPL to fund their travels, a significant drop from 75% the previous year. This decline was observed across all markets, including the UK, which reported the least optimistic outlook on personal finances.
Furthermore, respondents exhibited a strong awareness of foreign exchange fees and preferred booking travel providers that offered payment in their own currency. In the UK, international travel surpassed other priorities by a wide margin, with 43% of respondents ranking it as a high priority compared to subscription services at 19%.
While the study was conducted before the recent interest rate hikes in the UK, EU, and US, the findings offer a hopeful outlook for the travel industry. Jean-Christophe Lacour, Senior Vice President and Global Head of Products Management and Delivery at Outpayce from Amadeus, emphasised the enduring demand for travel, noting that consumers are willing to allocate more funds to international exploration despite potential sacrifices in other areas. As consumers gear up for a year of new horizons, the travel industry is poised to embrace a wave of eager adventurers eager to embark on their next unforgettable journey.
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