Collinson International’s new Asia-Pacific research titled 2024 Travel Benefits and Customer Engagement Report revealed that travel is one of the highest credit card spend categories for survey respondents, accounting for almost a third (27%) of annual expenditure.
Surveying 7,250 respondents across 14 markets in Asia-Pacific, the report analyses the behaviours, perceptions, and preferences of travellers in the region.
The research also showed South-east Asia to be an emerging travel powerhouse. The annual travel spend for survey respondents based in Singapore is US$10,619, almost double that of markets such as mainland China (US$5,014), and Japan (US$4,529). South-east Asian survey respondents in Malaysia and Thailand also spend considerably on travel annually, budgeting US$5,939 and US$5,548 respectively.
Consumers in Asia-Pacific are not just looking to travel more, but are also desiring enhanced experiences. On average, survey respondents in the region advised that they spend US$4,763 per annum on travel; with the average spend on a domestic return trip at US$700 and US$2,000 for an international trip.
When asked which travel perks they value most, 44% of respondents ranked airport lounge access as their top travel-related credit card benefit – surpassing more service-oriented benefits, such as security fast-track (11%) and airport transfers (9%).
In fact, 90% of respondents in Asia-Pacific 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 that offered membership with their favourite airport lounge access programme if it was no longer offered by their current card, with Japan (96%), Malaysia, Taiwan region (both 92%), the Philippines and Singapore (both 91%) feeling this most strongly.
According to the report, 92% of respondents informed that they are more likely to use their payment cards for everyday spend and travel expenses if the cards offer travel-related rewards or benefits. Notably, 45% of respondents ranked travel benefits as the most important when choosing to sign up for one credit card over another; placing them above other benefits, such as everyday rewards, the prestige associated with the card, and sign-up bonuses. Travel benefits are particularly important in Japan (56%), Malaysia (53%), and Thailand (50%).
The research also revealed that travel experiences beyond airport lounge access, such as accessing dining offers while travelling, are highly valued among Asia-Pacific travellers – with respondents in Thailand, Malaysia, Australia, Hong Kong SAR, Taiwan region, Singapore, and the Philippines having listed ‘dining offers’ in their top five most preferred travel benefits.
Rohan Bhalla, Asia Pacific vice president, business solutions at Collinson International, commented: “Our research has shown that travel is a key driver for consumer expenditure. This travel resonance is especially strong with South-east Asian survey respondents, further demonstrating how much the region is primed to be the next travel powerhouse. Beyond the rise of Indian outbound travellers and the much-anticipated Chinese outbound travel resurgence, we should not ignore the potential of South-east Asia’s travel market; a dynamic region that generated over 40 million departures and US$53 billion in outbound travel expenditure pre-pandemic.”
Catering to the rapid recovery of travel and to the evolving needs of travellers, Collinson International has expanded its network of airport lounges and travel experiences in Asia-Pacific by 15% over the last 12 months. Today, there are close to 650 airport lounges and travel experiences within Collinson International’s Priority Pass network in the region, of which more than 100 are travel experiences.
Bhalla added: “By integrating travel and airport related benefits and experiences – such as lounge access, security fast track, airport transfers, dining and duty-free offers – into customer engagement and loyalty programmes, brands are able to level-up their customer value proposition, enhance customer satisfaction, differentiate from competition, and deliver measurable business impact.”
The 2024 Travel Benefits and Customer Engagement Report can be viewed here.
