It’s not just the “very wealthy” Asian travelers who are fueling the travel industry’s impressive growth, but a growing number of middle-class Asian travelers who are ignoring inflation in favor of travel. A new study conducted by Expedia in partnership with Atomic Research calls this new group of middle- and high-income travelers “mass affluent” travelers.
According to a study by Expedia, Asia’s middle class is expected to reach 3.5 people by 2030, accounting for two-thirds of the world’s middle class. The trend of prioritizing travel over sales, discounts, packages, or (for many) other forms of discretionary spending is helping wealthy Asians reduce the impact of inflation and make space for travel in their budgets. It helps secure it.
These travelers plan to spend an average of 23% of their income on travel over the next 12 months, and more than four in five respondents (81%) say travel is a priority despite inflation I answered. Almost two in five people (39%) said they would prioritize traveling over buying a new car or upgrading their electronics, and one in three (nearly 32%) said they would prioritize eating out.
long distance travel
While traveling to East and Southeast Asia countries is popular among many wealthy Asians, a significant number of them also explore other international destinations such as Japan, the United States, Canada, France, South Korea, Australia, and Germany. I am. On average, these travelers plan their next international trip to four destinations in 10 days. Interestingly, trip length and total destination vary by region. Indians seem to opt for longer trips of 14 days on average, while the minimum length for Vietnamese travelers is 8 days. Indian travelers prefer to visit five or more destinations on their next international trip, while Singaporean, Chinese, Vietnamese and Indonesian travelers often plan four or fewer destinations.
When it comes to travel planning, more than one in three respondents said they rely on a travel agent to plan their trip. The majority (72%) prefer to use platforms like Expedia. They also use travel apps to book hotels (73%), book flights (70%), and search for activities and excursions (52%). This reliance on digital tools continues with 83% of consumers in Asia Pacific reporting having a travel brand app installed on their mobile device and 36% reporting using the app regularly. This is further emphasized by the fact that
Expedia said in its research that a growing number of upper-middle-class travelers in Asia are ignoring inflation in favor of travel.
luxury experience
Luxury amenities and luxury accommodation are high on the priority list among affluent Asians, the survey found.
When it comes to premium travel experiences on their next international trip, an overwhelming 93% of travelers plan to pursue at least one of the following:
Ask for an airline upgrade (44%) Ask for a room and accommodation upgrade (42%) Book a luxury hotel (52%) Book a private tour or excursion (39%) First class or business class seats Book (38%)
Despite regional differences, flight upgrades, premium rooms and hotels, and exclusive experiences are top priorities. Chinese, Singaporean and Vietnamese travelers strongly preferred gourmet dining, while Indian travelers preferred first or business class seating and Indonesian travelers preferred private tours.
Overall, airline and cabin upgrades were the most popular choices. All-inclusive packages are one of the most popular purchases among travelers from India (61%), Indonesia (61%), and Vietnam (58%).
Peter O’Connor, co-director of the Center for Corporate Dynamics in the Global Economy at the University of South Australia, said Asia’s mass affluent consumer market is rapidly emerging as one of the most important population segments to reach and serve. He said that it is happening. “As this study shows, they are poised to have a major impact on the travel economy with their penchant for long-distance travel and preference for luxury amenities.”
Opportunities for travel agents
Almost half of respondents had some level of concern about understanding standard practices regarding local transportation, dining habits (43%), appropriate greetings (41%), and declaring baggage at customs (40%). I answered that I feel About 34% said they would be willing to spend more to stay in a hotel with staff who speak their language. Partners can use these insights to differentiate their services and resources for first-time visitors.
Inflation has forced most travelers (75%) to look for deals, discounts and packages on their next trip, but luxury goods remain highly valued. Top spending priorities were luxury in-room amenities (53%), experiential travel (52%), cultural experiences (40%), and hotels with Michelin-starred chefs (31%). Expedia says its partners should try to promote strategies to combat inflation while promoting luxury amenities.
Loyalty programs remain a key attraction for travelers. The majority of travelers (86%) said they belonged to one or the other. Airlines, hotels, and credit card loyalty programs are equally popular. This is useful for tourism boards to promote their destinations, especially in the early planning stages, when they report that they do not have a specific destination in mind, or only have a country in mind and not a city. This is an opportunity to do so.
