Collinson International’s 2024 Travel Benefits and Engagement Report reveals millennials in India are spending as much as USD 6,031 per annum on travel.
- Travel is one of the highest credit card spending categories for survey respondents in India, accounting for almost a third (27%) of annual expenditure. Millennials in India spend the most on travel (USD 6,031 per annum) when compared to other generations.
- 93% of Indian survey respondents agreed that travel rewards or benefits encourage credit card use for everyday spending and travel expenses, with more than half of the total survey respondents (52%) having redeemed such rewards and benefits in the last six months.
- Demand for air travel grows from strength to strength with respondents in India making approximately six return trips a year.
Collinson International has released its Asia Pacific customer engagement and loyalty research report titled ‘2024 Travel Benefits and Customer Engagement Report’. Surveying 7,250 respondents across 14 markets in Asia Pacific, the report analyses the behaviours, perceptions, and preferences of travellers in the region; with key findings showing that travel is the second highest expense for respondents in India, accounting for almost a third of annual expenditure.
Only ‘everyday spend’ – which includes groceries and retail shopping – surpassed travel spend in India; reflecting the value of travel to payment cardholders in India.
In India, millennials are the top spenders on travel when compared to other generations, averaging USD 6,031 annually. Comparatively, Gen Z, Gen X and Boomers spend USD 2,622, USD 3,059 and USD 2,600 per annum, respectively on travel. Travel is the highest spending category for Indian millennials, accounting for more than a third (34%) of their annual expenditure.
The research further revealed that when choosing to sign up for a credit card, 48% of millennials in India indicated that travel benefits, such as earning and redeeming miles, having access to airport lounges and travel experiences, as well as travel insurance are perks that they value most.
Commenting on the findings, 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 outbound travellers, coupled with increasing travel spend by Indian millennials, demonstrates the growing opportunities present in the market that brands, particularly in the financial services sector, can leverage to bring further value.”
Consumers in India are not just looking to travel more, but are also desiring enhanced experiences. When asked which travel perks they value most, 44% of respondents ranked airport lounge access as their top travel-related credit card benefit – surpassing security fast-track (9%) and airport transfers (7%).
In fact, 90% of respondents in India agreed that access to airport lounges is a travel benefit that they would expect on any credit card with an annual fee. 89% would consider switching to a new card if their payment card stopped offering airport lounge membership as a benefit, highlighting the impact of travel benefits on retention.
Additionally, 93% of Indian respondents informed that they are more likely to use their payment cards for everyday spending and travel expenses if the cards offer travel-related rewards or benefits; suggesting an influence on cardholder engagement. Notably, 45% of respondents ranked travel benefits as the most important when choosing to sign up for one credit card over another; highlighting an impact on acquisition – with respondents placing travel benefits above others, such as everyday rewards, the prestige associated with the card, and sign-up bonuses.
Sumit Prakash added, “As evidenced by the ever-increasing passenger numbers in India, consumers are increasingly more willing to spend on travel, and are demonstrating a strong preference for travel-related benefits that enhance their travel experiences. By integrating travel and airport related benefits and experiences – such as airport lounge access, security fast track, airport transfers, dining and more – into customer engagement and loyalty programmes, brands are able to level up their customer value proposition, enhance customer satisfaction, differentiate from the competition, and deliver measurable business impact. We look forward to continuing to work closely with our partners in India to leverage the opportunities that travel brings, and to elevate the travel experiences of their consumers.”
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