Visual for illustration. Based on the recently published 2024 Travel Benefits and Customer Engagement Report by Collinson International, individuals aged between 20 and 39 in India are emerging as the leading contributors to travel spending, with an average yearly cost of USD 6,031—the highest among all age groups. Currently, travel expenses represent almost one-third (27 percent) of all credit card spending in India, underscoring its increasing importance to consumers in India.
The study, which draws from interviews with 7,250 individuals in 14 Asia-Pacific regions, shows that vacations rank as the second most costly outgo for Indian shoppers, just behind spending on daily essentials like groceries and shopping at retail outlets. Young adults dedicate the highest portion of their income to travel, accounting for 34 percent of their yearly expenditures, whereas Gen Z, Gen X, and Baby Boomers allocate much less towards this category—an average of USD 2,622, USD 3,059, and USD 2,600 annually, respectively.
Sumit Prakash, the leader for India and the South Asian region at Collinson International, discussed the insights from the report. He said, “Travel plays a crucial role in driving consumer spending, especially for young Indians. Their growing tendency to travel abroad, along with more money being spent on travel, offers great chances for companies, especially those in finance, to improve what they offer by adding travel perks.”
The document further emphasizes the increasing desire for improved travel experiences, with 44 percent of Indian participants identifying access to airport lounges as their top priority travel credit card advantage. This choice stands out above additional benefits such as expedited security (9 percent) and airport shuttle services (7 percent). Furthermore, 90 percent of Indian participants anticipate lounge access being a feature of any credit card that charges an annual fee, and 89 percent said they would think about switching cards if lounge access was removed. This highlights the significance of travel perks for keeping customers.
Cleartrip announces a 150% expansion in the bus sector and introduces the ‘Bus Pass’ for travellers who use the service regularly. This is a pioneering effort in the sector, providing substantial discounts and perks for passengers who frequently board. According to Cleartrip’s customer information, 32% of its customers are regular bus riders, making multiple bookings in the past three months, while 15% of these customers book bus tickets on three or more occasions during the same period.
Moreover, 93% of those surveyed concurred that travel incentives impact their daily purchasing habits, with 45% considering travel perks as the key consideration in selecting credit cards. These findings underscore the significant importance of travel-related perks in the strategies for attracting and retaining customers by financial services companies.
In response to the changing demands of Indian travelers, Collinson International has broadened its roster of airport lounges and travel offerings by 15% over the past year. As part of its Priority Pass initiative, travelers from India can now enjoy access to more than 70 airport lounges and travel opportunities throughout the nation, with over 650 available across Asia Pacific. On a worldwide scale, the Priority Pass network spans over 1,600 lounges and travel experiences in 145 nations.
“With Indian shoppers increasingly valuing travel experiences and looking for improved outcomes, companies have the opportunity to use travel-related advantages to increase consumer happiness, stand out from rivals, and propel the expansion of their business,” Prakash mentioned.