• Sat. Oct 1st, 2022

International travel remains a high priority

ByCindy J. Daddario

Aug 4, 2022

A new study by leading travel tech company Amadeus has found people still want to travel despite 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 spending area for the coming year, far ahead of fashion, dining out and expensive items like home improvement.

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The data also showed that 32 percent of people viewed domestic travel as a top priority spending area over the next 12 months, while online subscriptions (28 percent), eating out (27 percent) and fashion (25 percent) made the top 5 answers rounded off.

“This study clearly shows that consumers are willing to sacrifice spending in other areas of their lives to fund travel this year,” said David Doctor, Executive Vice President of Amadeus. “But that’s not the end of the story. The industry needs to look at ways fintech can make travel expenses more transparent and help travelers manage their spend.”

On average, respondents estimate they will spend $2,670 on international travel over the next year, which is roughly the same as in 2019 ($2,780 on average). Many travelers plan to spread the cost across installments and use previously earned loyalty points to ease the burden.

About 75 percent of travelers said they would choose an installment option like “buy now, pay later” to fund their vacation next year, another 44 percent would use a credit card, and 26 percent would use a payday loan.

“The demand for flexible payment options such as ‘buy now, pay later’ when traveling is extremely high,” continued Doctor. “The industry is keen to meet this demand, but it should do so responsibly and properly manage risk. Experienced travelers adapt to limit the costs associated with travel. We see in our own data that more and more travelers are choosing to pay in their local currency across all airlines using our FX Box technology.”

Another 47 percent of those surveyed said they plan to spend loyalty points earned to pay for their trip. Travelers are also embracing new fintech options, with 48 percent more likely to try multi-currency prepaid debit cards to avoid foreign exchange fees when making payments abroad.


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