The travel landscape in Asia Pacific is witnessing a seismic shift. According to Collinson International’s 2024 Travel Benefits and Customer Engagement Report, the average consumer in the region spends over USD10,000 annually on travel. This figure cements Asia Pacific’s position as a global travel powerhouse, with countries like Singapore leading the charge. The region’s growing demand for air travel, enhanced airport experiences, and credit card-linked travel benefits is reshaping consumer habits and business strategies.

A Snapshot of the Findings

The extensive survey, which polled 7,250 respondents across 14 markets in Asia Pacific, provides valuable insights into the evolving travel preferences of the region’s consumers. Travel has emerged as one of the highest categories of annual expenditure, accounting for nearly a third of overall spending.

In Singapore, respondents revealed that their travel budget surpasses USD10,619 annually, putting them at the top of the region’s travel spenders. This is nearly double the amount travellers spend in China (USD5,014) and Japan (USD4,529). Similar trends were noted in Southeast Asia, where Malaysian and Thai travellers budget around USD5,939 and USD5,548, respectively, for annual travel.

Rohan Bhalla, Vice President for Business Solutions at Collinson International, noted, “Our research clearly indicates that travel is a significant driver of consumer expenditure across Asia Pacific, particularly in Southeast Asia. As we witness the resurgence of outbound travel, especially from China and India, Southeast Asia is emerging as a critical player in the global travel landscape.”

Growing Demand for Travel Experiences

The report also highlights the increasing desire for quality travel experiences. Respondents indicated that they are not just travelling more frequently – averaging six return trips annually – but also prioritizing premium services and experiences during their journeys. On average, survey participants spend around USD4,763 per year on travel, with domestic trips costing approximately USD700 and international journeys reaching USD2,000.

Airport lounge access emerged as the most coveted travel-related benefit for Asia Pacific travellers, with 44% ranking it above other perks like security fast-track (11%) and airport transfers (9%). The value placed on lounges underscores a broader trend: travellers are willing to pay more for a superior airport experience. An overwhelming 90% of respondents stated they expect lounge access as part of any premium credit card offering. If their current card provider ceased offering this perk, 89% of respondents would consider switching to a card that gives it – with the sentiment being powerful in Japan (96%), Malaysia (92%), Taiwan (92%), and Singapore (91%).

Credit Card Rewards Drive Spending

One of the most compelling findings from the report is how credit card-linked travel rewards are shaping consumer behaviour. A notable 92% of respondents said they are more likely to use their payment cards for everyday expenses and travel-related purchases if the cards offer travel rewards. Travel benefits, such as lounge access, dining offers, and airport transfers, are pivotal in influencing consumers’ choice of credit cards. In markets like Japan, Malaysia, and Thailand, over half of the respondents ranked travel benefits as the deciding factor when selecting a credit card.

“Financial services providers are in a prime position to capitalize on this growing demand for travel rewards,” Bhalla added. “By integrating travel-related benefits into loyalty programs, brands can significantly enhance customer satisfaction, differentiate from competitors, and create a lasting business impact.”

Southeast Asia: A Travel Powerhouse

The report points to Southeast Asia as a burgeoning travel hub, poised to reclaim its pre-pandemic glory. In 2019, the region accounted for over 40 million departures and an impressive USD53 billion in outbound travel expenditure, according to a study by the European Travel Commission. While China and India often dominate discussions on Asia’s travel markets, Southeast Asia’s resilience and growth should not be underestimated.

Countries like Thailand, Malaysia, and Singapore are witnessing a rapid travel demand recovery, expected to accelerate in the coming years. Bhalla emphasized the significance of this surge, saying, “Southeast Asia is positioned to become a major player in the global travel industry, thanks to its growing middle class, rising incomes, and strong demand for travel experiences.”

The Expanding Priority Pass Network

To meet the growing demand for enhanced travel experiences, Collinson International expanded its airport lounges and travel experiences by 15% across Asia Pacific last year. Today, nearly 650 lounges and travel experiences in the region fall under Collinson’s Priority Pass network. This network spans 145 countries and includes over 1,600 airport lounges worldwide, offering travellers an ever-growing range of options to relax, dine, and refresh before their flights.

What This Means for Brands

As travel demand continues to soar, particularly in Southeast Asia, brands – especially those in the financial services sector – are presented with a unique opportunity. By offering travel-related benefits such as lounge access, airport transfers, and dining perks, brands can build stronger customer relationships, improve loyalty, and differentiate themselves.

The 2024 Travel Benefits and Customer Engagement Report clarifies one thing: consumers in Asia Pacific are ready and willing to spend on travel. Brands that can align themselves with these travel-centric consumer preferences will be well-positioned to capture this growing market segment.

For more information on Collinson International’s 2024 Travel Benefits and Customer Engagement Report, click here.

Written by: Christine Nguyen

====================================