In a recent study by Outpayce from Amadeus, the second edition of ‘Consumer travel spend priorities’ reveals that high-earning households are gearing up to drive a significant increase in international travel over the next twelve months.
Despite economic uncertainties, households with an annual pre-tax income exceeding $120,000 are earmarking international travel as a top priority. The survey, conducted during the second quarter of 2023, highlighted key factors propelling this trend, including successful investments, pandemic-induced savings, and recent pay raises.
The research involved 4,500 travelers surveyed in the US, UK, France, Germany, and Singapore during Q2 2023, conducted online by international market research firm Opinium on behalf of Outpayce from Amadeus.
Here are the key findings:
- High Priority for Higher Earners:
- 68% of higher earners consider international travel a ‘high priority,’ compared to 47% across all income brackets.
- Increased Travel Plans:
- 65% of higher earners plan to take more international trips in the next 12 months compared to 38% across all income brackets.
- Higher Budget Allocation:
- 58% of higher earners intend to spend more on international travel in the next 12 months compared to 36% across all salary brackets.
- Budget Disparity:
- Higher earners expect to spend an average of $7,413 on international travel, a stark contrast to the $3,422 average across all salary brackets.
- Top Reasons for Increased Spending:
- 41% made money on recent investments.
- 40% saved during the pandemic.
- 40% received a recent pay rise.
Jean-Christophe Lacour, SVP Global Head of Product Management and Delivery at Outpayce from Amadeus, emphasized the sustained demand for travel, with higher-earning households playing a significant role. He urged travel companies to enhance retail experiences, citing the need for transparency in foreign exchange costs.
Lacour stated, “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’ve witnessed from one of our airline customers.