Thai travellers' spending is expected to see the largest jump compared to Asian and global average when it comes to amount of money intended to spend for next trip, according to Visa's Global Travel Intentions Study (the "Study"). The Study examines international travel trends and behavior of 17,500 global travelers from 27 countries around the world.
Thais are expected to leapfrog Asian and global travellers in terms of overseas spending for the next trip with 50 per cent increase, compared to Asia Pacific counterparts (46 percent) and global travellers (36 per cent). The average Thai traveler spends USD 1,502 per trip and that is expected to increase to USD 2,252 for future travel, according to respondents. The average Asia Pacific and Global travellers spend higher on average at USD 1,677 and USD 1,793 respectively, but see lower movement in future travel expenditure forecasted at USD 2,443.
Mr. Suripong Tantiyanon, Country Manager, Visa Thailand said: "From our conversation with different players in the tourism industry, an increase in intended spending of Thai travellers can be attributed to the fact that there are more financial products today than ever before. They are more sophisticated and better suited to travellers' needs, with added benefits and privileges. As a result, Thai travellers are more confident and willing to spend more."
The Study also uncovered that the use of payment cards is prevalent especially during the pre-trip stage. Three in four (76 per cent) of Thai travellers reportedly prefer and use payment cards for pre-trip expenditures, such as flight and hotel reservation, compared to cash at 52 per cent. Respondents cited their preference towards payment cards are due to promotion, lower transaction fees, better rewards for international usage and higher security.
Despite the fact that cash is used by all Thai travellers at some point during their trip, credit cards are also heavily featured at 67 per cent. A quarter of Thai travelers use a different card to their usual one whilst abroad, basing their decision on transaction speed, wider acceptability at international retailers, lower fees and better rewards. Additionally, 26 per cent of Thai travellers would have spent more with wider card acceptance.
Interestingly, the use of digital wallet is fast emerging, with a quarter of Thai travelers having used it at their destination. Solo and Bleisure (blend between business and leisure) travellers, in particular, are the heavier users of digital wallets at 41 per cent.
"It is exciting to see travellers willing to spend and venture overseas more and we believe that the payment industry continues to have an important role to play. That is why it is important they are not limited to a handful sources of fund or few ways to their payment will be accepted. Travellers' needs and behaviors are inherently diverse therefore driving adoption and usage of payment form factors, including mobile application, QR code or plastic cards, which will be key to sustaining the growth of the industry in the long run," concluded Mr. Suripong.
Methodology
The data is based on 500 interviews in each of the 27 markets except India, China, Australia and New Zealand, where 1000 interviews were conducted. Online interviews were conducted between June – July 2017, in all markets, with the exception of Egypt, Kuwait and Saudi Arabia; where interviews were done face-to-face with the assistance of laptops.
Regions included in the study
APAC – Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan, Thailand, Vietnam
Europe – France, Germany, United Kingdom, Russia, Ukraine
MEA – Egypt, Kuwait, Saudi Arabia, South Africa, United Arab Emirates
Americas – Brazil, Canada, Mexico, United States
About Visa
Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead with prepaid or pay later with credit products. For more information, visit https://usa.visa.com/, visacorporate.tumblr.com and @VisaNews.