Travel is a top spending priority despite economic uncertainty and consumers are willing to spend more in the coming 12 months, found a study released by Outpayce from Amadeus.
According to the “Consumer Travel Spend Priorities 2023” survey conducted on 4,500 travelers from the US, UK, France, Germany and Singapore in the second quarter of 2023, consumers are planning on spending 28 percent more on travel over the next 12 months.
More specifically, of all spend categories in the survey, travel in the next 12 months increased by the largest margin, up to 47 percent or a 12 percent rise year-over-year.
Based on study feedback, travelers are set to spend 3,422 dollars on average in the coming 12 months up by 753 dollars per person or 28 percent over 2022.
“Consumer demand for travel remains strong. People are clearly prepared to spend savings that may have been amassed during the pandemic, and to make sacrifices in other areas, to dedicate more funds to international travel,” said Jean-Christophe Lacour, SVP Global Head of Products Management and Delivery, Outpayce from Amadeus.
Meanwhile, last year 75 percent of consumers said they were more likely to use “Buy Now Pay Later (BNPL) services” to fund travel. This figure has dropped to 33 percent.
At the same time, significantly fewer consumers are saying they are more likely to use credit cards or payday loans to fund travel this year. Instead, 40 percent of those polled said they plan to pay for travel from their savings with a third saying they will cut spending in other areas like clothing and home improvement to support travel plans.