Visa (NYSE: V) announced the results of its 2023 U.S. edition of the Visa Global Travel Intentions Study, revealing emerging trends “in consumer behaviors and preferences for outbound and inbound cross-border travel.”
Travel has surged post-COVID and there are “no signs of retreating, despite rising costs.”
According to U.S. Travel Association’s recent Travel Price Index, travel costs “have increased 4.4%, and while most Americans surveyed by Visa (73%) notice an increase in costs, only 6% of travelers plan to cancel or delay their plans.”
U.S. Outbound Traveler Insights:
- Prioritizing days away for leisure: American international travelers surveyed took an average of three international trips for around seven days, but Gen Z spent longer away at more than 8 days. Travelers prioritize trips for relaxation (47%), followed by exploring something new (35%) and seeking adventures (33%). Australia, Canada, France and United Kingdom are top destinations for 2024.
- Big spenders: Those in our survey reported an average trip spend of $4,204, with more than 60% of total spend purchases at destinations leading travelers to budget more for on-site needs.
- Digital payments savvy: Digital wallets have become an integral aspect of the travel experience for 74% of travelers, most prominent amongst affluents (83%) and millennials (82%). 85% of travelers used their main domestic card internationally.
- Cash creates stress: Cash is still preferred as a payment method, but stresses travelers due to potential theft, cost of currency conversion and leftovers. After a trip, our respondents reported having an average of $40 USD in unused local currency and 24% of respondents felt compelled to make a purchase because they had foreign cash leftover.
- Travelers embrace control and independence: Our survey found 60% of travelers are willing to pay a higher price to enjoy the flexibility to accommodate changes in their trip plans.
- Embracing sustainable travel options: 76% of surveyed travelers will choose eco-travel options if they are available at the same price or cheaper than alternative options, specifically accommodations.
U.S. Inbound Traveler Insights:
- Self-care and Casual Dining: Relaxation and shopping were the top motivators for travelers to U.S. Dining is also high on the list with 60% of respondents choosing casual dining options like street food and cafes over fine dining.
- Repeat Inbound Visitors: More than half of travelers to the U.S. in the survey (52%) plan to revisit over the next year, especially those from South Africa, Canada and India. Top visitor volume comes from Latin America, followed by Asia Pacific, with most travelers booking accommodation and transportation less than three months prior and local attractions around one month prior to embarking.
- Payment issues point to cash: Tourists embrace cashless options in the U.S. as travelers in our survey carried payment cards (98%) and used digital wallets (54%). However for those that did carry cash, about 45% encountered a cash-related issue, including handling dollars and coins, finding money changers, inability to make a purchase because they ran out of dollars or lost cash.
GTI Methodology
The Global Travel Intentions Study is reportedly “the largest and longest running global consumer insights program from Visa, which surveys travelers across continents on their travel journey and payment behavior.”
For more than a decade, the study has “equipped Visa, and our partners, with an unparalleled breadth and depth of insights on the travel and payment landscape.”
Visa’s Global Travel Study was “conducted in conjunction with research and business intelligence firms 4SiGHT Research & Analytics and CLEAR Ideas Pte Ltd and collected data over the course of more than 37,000 interviews in 37 markets.”