In India, Millennials outspend other generations on travel, with an average annual expenditure of $6,031, according to Collinson International’s ‘2024 Travel Benefits and Customer Engagement Report’. In contrast, Gen Z, Gen X, and Boomers spend $2,622, $3,059, and $2,600, respectively, on travel each year.
Travel accounts for the largest share of spending among Indian Millennials, comprising over a third (34 per cent) of their annual expenses. The report also revealed that 48 per cent of Indian Millennials prioritise travel-related perks when selecting a credit card, with benefits like earning and redeeming miles, airport lounge access, exclusive travel experiences, and travel insurance being highly valued.
The report, which surveyed 7,250 individuals from 14 Asia-Pacific markets, examines the behaviours, perceptions, and preferences of travellers in the region. It reveals that travel is the second largest expense for respondents in India, representing nearly one-third of their yearly spending. The only category surpassing travel expenses is ‘everyday spend’, which includes groceries and retail purchases, highlighting the significant importance of travel to Indian payment cardholders.
Sumit Prakash, country director, India and South Asia, Collinson International, said, “Our research highlights that travel is a key driver for consumer expenditure, with a strong ‘travel resonance’ among Indian survey respondents. The rise of Indian outbound travellers, coupled with increasing travel spend by millennials, demonstrates the growing opportunities present in the market that brands, particularly in the financial services sector, can leverage to bring further value.”
Preferred travel perks by Indian consumers
Indian consumers are not only seeking more travel opportunities but also placing greater emphasis on enriched experiences. In a survey on the most valued travel perks, 44 percent of respondents ranked airport lounge access as the top benefit from travel-related credit cards, far outweighing preferences for fast-track security (9 per cent) and airport transfers (7 per cent).
Remarkably, 90 per cent of respondents indicated that they would expect airport lounge access as a standard benefit from any credit card with an annual fee. Moreover, 89 per cent stated they would consider switching to a different card if their current one no longer offered lounge access, underscoring the significance of travel benefits in maintaining cardholder loyalty.
Travel perks drive credit card preferences
Furthermore, 93 per cent of Indian respondents noted that they are more inclined to use their credit cards for both everyday purchases and travel expenses if the cards provide travel-related rewards or benefits, suggesting that such perks enhance cardholder engagement.
Around 45 per cent of the respondents cited travel benefits as the most critical factor when choosing between credit cards, placing these perks above everyday rewards, card prestige, and sign-up bonuses, thereby emphasising their role in card acquisition decisions.
First Published: Sep 12 2024 | 5:23 PM IST
