2 minute read
Amadeus
Nearly two-thirds of this cohort are planning to take more international trips than in 2019.
The second edition of the ‘Consumer travel spend priorities’ research conducted by Outpayce from Amadeus, reveals that high-earning households are expected to drive continued strong demand for international travel over the coming twelve months.
Despite continuing economic uncertainty, higher earners – categorized as households with more than $120,000 in pre-tax income per annum — prioritized international travel, citing successful investments, savings made during the pandemic and pay rises as key enablers.
– International travel was deemed a ‘high priority’ by 68% of higher earners compared to 47% across all salary brackets.
– 65% of higher earners plan to take more international trips over the coming 12 months than they did in 2019, compared to 38% of respondents across all income brackets.
– 58% of higher earners plan to spend more on international travel over the coming 12 months than they did in 2019, compared to an average of 36% across all salary brackets.
– Higher earners expect to spend $7,413 on international travel over the coming 12 months, compared to an average of $3,422 across all salary brackets.
– When higher earners were asked why they could spend more on travel, the top answers were:
- Made money on recent investments so I can spend on travel (41%)
- Saved during the pandemic, enabling greater spend on travel (40%)
- Received a pay rise recently, meaning I have the freedom to spend on travel (40%).
Jean-Christophe Lacour, SVP Global Head of Product Management and Delivery, Outpayce from Amadeus commented: “We’re seeing continued strong demand for travel across most parts of the world and it’s clear that higher-earning households are major contributors to this trend. Our own Demand 360 data shows hotel occupancy in exclusive destinations like Palermo, Rome and San Sebastien is more than 10% higher than last year.”
He continued: “If travel companies are to continue attracting higher earners, they must offer exceptional retail experiences. Take airlines, for example. To increase margins, they must offer passengers full transparency on foreign exchange costs. Today, travelers expect payments to be seamless, simple, and in their local currency. By handling conversions internally, airlines can reduce fees for the customer, and in some cases, double the profit earned on a ticket, as we we’ve witnessed from one of our airline customers”.
About the research:
4,500 travelers were surveyed from the US, UK, France, Germany and Singapore during the second quarter of 2023 using an online methodology by international market research firm Opinium on behalf of Outpayce from Amadeus.
To download the full report please visit here.
About the research:
4,500 travelers were surveyed from the US, UK, France, Germany and Singapore during the second quarter of 2023 using an online methodology by international market research firm Opinium on behalf of Outpayce from Amadeus.