Both international and domestic travel are expected to remain robust over the next 12 months, according to the most recent “Consumer Travel Spend Priorities” report from Outpayce from Amadeus.
When it comes to discretionary spending, international holidays were the top pick among consumers both in last year’s 2022-2023 outlook (42 percent) and this year’s 2023-2024 outlook (47 percent). Following in both editions was domestic travel (32 percent, 36 percent). Both experiential options surpassed things like online subscriptions and dining out (30 percent each in this year’s report) and paced far ahead of material goods purchases, including new clothes (28 percent) and even “big ticket” items like a new car or home furnishing (23 percent).
Good to know: While these numbers represent a global body (international market research firm Opinium performed the survey on behalf of Outpayce from Amadeus and included 4,500 travelers from the U.S., U.K., France, Germany and Singapore), Americans had an even higher response rate for international travel at 55 percent. Nearly two-thirds of Americans (64 percent) also said they would take more international trips this year than they did in 2019 and they also said they would spend more on travel this year versus previous years.
As for Millennial and Gen Z travelers from the U.S., despite over half of them living paycheck-to-paycheck, they are more than willing to pay for travel. According to the report, the cohort estimated they’d spend $4,766 per person over the next year ($1,704 more than the global figure for the same demographic).
What else you need to know: Last year, 75 percent of consumers said they were “more likely” to use “Buy Now Pay Later” (BNPL) services to fund travel; this number dropped to a still-significant 33 percent who said they would choose BNPL to fund travel over the coming twelve months. Rather, 40 percent of consumers said they planned to pay for travel by dipping into their savings and 33 percent confirmed they will reallocate spend from areas like clothing and home improvement to fund travel plans.
Source: Outpayce from Amadeus
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