The second edition of the consumer travel spend priorities research by Outpayce, a wholly owned Amadeus company, reveals that consumer demand for travel is expected to remain robust over the coming 12 months, despite continuing economic uncertainty.
International travel was once again ranked by consumers as the highest discretionary spend priority from a basket of six categories. The other categories were domestic travel, online subscriptions, eating out, fashion and big-ticket items (new car or home furnishings).
All spend categories edged up compared with last year’s study, pointing to a tentative jump in overall consumer confidence. However, the number of people ranking travel as a “high priority” for the coming 12 months increased by the largest margin, rising to 47%, up 12% year over year. Travelers expect to spend significantly more on international travel during the coming year, with an average expected spend of $3,422, an increase of $753 per consumer, or 28%, compared with last year.
Jean-Christophe Lacour, global head of product management and delivery for Outpayce, said the research shows that consumer demand for travel remains strong. People are clearly prepared to spend savings that may have been amassed during the pandemic, he said, and to make sacrifices in other areas to dedicate more funds to international travel. But Lacour added that “there’s no room for complacency,” noting that “travel companies that clearly price their products in the traveler’s native currency, offer flexible ways to pay and focus on delivering a smooth retail experience stand the best chance of converting shoppers into paying customers.”