Indian Millennials spend $6,031 on travel, which is higher than Gen Z, Gen X and Baby Boomers
In India, Millennials spend more on travel than other generations, with an average annual spend 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 per year on travel, respectively.
Travel accounts for the largest share of spending among Indian Millennials, accounting for more than a third (34 percent) of their annual spend. The report also revealed that 48 percent of Indian Millennials prioritize travel-related benefits when selecting a credit card, with benefits such as earning and redeeming miles, airport lounge access, exclusive travel experiences and travel insurance being highly valued.
The report, which surveyed 7,250 individuals across 14 markets in Asia Pacific, examines the behaviour, perceptions and preferences of travellers in the region. It reveals that travel is the second largest expenditure for respondents in India, accounting for almost a third of their annual spend. The only category to outpace travel spending is ‘daily spend’, which includes groceries and retail purchases, highlighting the huge importance of travel to Indian cardholders.
Sumit Prakash, country director, India and South Asia, Collinson International, said: “Our research highlights that travel is a key driver of consumer spending, with a strong ‘travel resonance’ among Indian respondents. The rise of Indian outbound travellers, coupled with increasing travel spending by millennials, highlights the growing opportunity in the market that brands, particularly in financial services, can leverage to create greater value.”
Favorite Travel Benefits of Indian Consumers
Indian consumers are not only looking for more travel options, but are also placing greater emphasis on enriched experiences. In a study on the most valued travel benefits, 44 percent of respondents named airport lounge access as the top travel-related credit card benefit, far outranking preferences for fast-track security (9 percent) and airport transfers (7 percent).
Interestingly, 90 percent of respondents said they would expect airport lounge access as a standard benefit of any credit card with an annual fee. Additionally, 89 percent said they would consider switching to another card if their current card no longer offered lounge access, underscoring the importance of travel benefits in maintaining cardholder loyalty.
Travel benefits determine credit card preference
Furthermore, 93 percent of Indian respondents said they are more likely to use their credit card for both everyday purchases and travel expenses if the card offers travel-related rewards or benefits, suggesting that such benefits increase cardholder engagement.
About 45 percent of respondents cited travel benefits as the most important factor when choosing between credit cards. These benefits were ranked higher than daily rewards, card prestige and welcome bonuses, highlighting the role of travel benefits in card purchasing decisions.
First publication: Sep 12, 2024 | 5:23 PM IST