Spain-based IT provider for the global travel and tourism industry, Amadeus , has commissioned a new study , 'Consumer Travel Spend Priorities', focusing on 4,500 consumers across Europe, the US, and Singapore, in June 2022, regarding their travelling spending habits. The urge to explore new destinations According to the study, consumers claimed they aim to travel more despite economic and geopolitical uncertainties, with international travel ranking as the highest priority from six discretionary spend categories.

42% of the respondents ranked international travelling above domestic travel, eating out, fashion, buying a new car, or renovating the house, which shows the extend of which the COVID-19 impacted the collective desire of seeing new places and experiencing new cultures. On average, consumers estimate they would spend little over USD 2,600 on international travels over the next 12 months, aligning to pre-pandemic budgets which were about USD 2,700. The digital future of traveling payments The main difference between the 2022 estimates and the 2019 budgets for traveling is that clients will spend the same amount of money but will not make their bang for a buck, given that, worldwide, costs of traveling, expenses, fuel, groceries, and the entertainment industry have increased.

Faced with economic uncertainty, more tourists adopt fintech solutions to finance their travels and are keen on finding alternative solutions, including instalment payments, to fuel their dreams of traveling abroad. In fact, Amadeus study shows that a staggering 75% of the respondents are more likely to opt for Buy Now, Pay Later (BNPL) plans to fund travels, compared to only 44% who are more likely to put their expenses on their credit cards, and 26% who consider opting for payday loans. Moreover, almost half of the respondents (47%) claim they will use any loyalty points, gratuities, discounts, and special offers to fund their trips, as opposed to continue gathering them.

Apart from BNPL payments, 48% of the survey participants said they are more likely to try pre-paid debit cards with room for various currencies to avoid huge FX trading fees when paying abroad, while 49% of them claimed their interest in co-branded cards that provide loyalty points. Given the current environment, 73% of travellers will be cautious with their FX rates, fees, and additional costs associated with international trips, while over half of the respondents would prefer a travel provider that allows them to pay in their own currency, with transparent FX fees. .