Tourists keen to travel using BNPL, says new report
Spain-based IT provider for the global travel and tourism industry, Amedeecommissioned a new study, “Consumer Travel Spend Priorities”, surveying 4,500 consumers in Europe, the United States and Singapore, in June 2022, regarding their travel spending habits.
The desire to explore new destinations
According to the study, consumers said they aim to travel more despite economic and geopolitical uncertainties, with international travel ranked as the highest priority among six categories of discretionary spending. 42% of respondents ranked international travel above domestic travel, restaurants, fashion, buying a new car or renovating the house, showing how COVID-19 impacted the collective desire to see new places and experience new cultures.
On average, consumers estimate they would spend just over $2,600 on international travel over the next 12 months, matching pre-pandemic budgets of around $2,700.
The digital future of mobile payments
The main difference between the 2022 estimates and the 2019 travel budgets is that customers will spend the same amount of money but not get what they pay for, given that worldwide travel costs, expenses, fuel, groceries and the entertainment industry have increased.
In the face of economic uncertainty, more and more tourists are adopting fintech solutions to finance their trips and want to find alternative solutions, including installment payments, to fuel their dreams of traveling abroad. In fact, research from Amadeus shows that a staggering 75% of respondents are more likely to opt for Buy Now, Pay Later (BNPL) plans to fund their travel, compared to just 44% who are more likely to put their expenses on their credit cards. , and 26% considering taking payday loans.
Additionally, nearly half of respondents (47%) say they will use loyalty points, tips, discounts and special offers to fund their trips, instead of continuing to collect them.
Besides BNPL payments, 48% of survey participants said they were more likely to try prepaid debit cards with room for different currencies to avoid huge FX trading fees when paying abroad, while 49% of them declared their interest in co-branded products. cards offering loyalty points.
Given the current environment, 73% of travelers will be cautious with their exchange rates, fees and additional costs associated with international travel, while more than half of respondents would prefer a travel provider that allows them to pay in their own currency, with seamless transparency. Exchange fee.