High-earning households to fuel continued travel surge
The second edition of the ‘Consumer travel spend priorities’ research conducted by Outpayce from Amadeus has revealed high-earning households are expected to drive continued strong demand for international travel over the coming twelve months.
Despite continuing economic uncertainty, higher earners – categorised as households with more than US$120,000 in pre-tax income per annum — prioritised international travel, citing successful investments, savings made during the pandemic and pay rises as key enablers.
Other findings reveal:
International travel was deemed a ‘high priority’ by 68 per cent of higher earners compared to 47 per cent across all salary brackets.
Some 65 per cent of higher earners plan to take more international trips over the coming 12 months than they did in 2019, compared to 38 per cent of respondents across all income brackets.
A total of 58 per cent 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 per cent 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 per cent).
Saved during the pandemic, enabling greater spend on travel (40 per cent).
Received a pay rise recently, meaning I have the freedom to spend on travel (40 per cent).
Jean-Christophe Lacour, senior vice president, 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 ten per cent 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, travellers 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
Some 4,500 travellers were surveyed from the US, UK, France, Germany and Singapore during the third quarter of 2023 using an online methodology by international market research firm Opinium on behalf of Outpayce from Amadeus.