According to Collinson International‘s newly released 2024 Travel Benefits and Customer Engagement Report, millennials in India are emerging as the top spenders on travel, with an average annual expenditure of USD 6,031—more than any other generation. Travel now accounts for nearly a third (27 per cent) of total credit card expenditure in India, highlighting its growing significance for Indian consumers.
The report, based on a survey of 7,250 respondents across 14 Asia-Pacific markets, reveals that travel is the second-highest expense for Indian consumers, following ‘everyday spend’ on groceries and retail shopping. Millennials spend the most on travel, with the category making up 34 per cent of their annual budget, while Gen Z, Gen X, and Boomers spend significantly less—USD 2,622, USD 3,059, and USD 2,600 per annum, respectively.
Sumit Prakash, Country Director for India and South Asia, Collinson International, commented on the report’s findings, “Travel is a key driver for consumer expenditure, especially among Indian millennials. Their rising outbound travel, coupled with increased spending, presents enormous opportunities for brands, particularly in the financial services sector, to enhance their value proposition with travel-related benefits.”
The report also highlights the growing demand for enhanced travel experiences, with 44 per cent of Indian respondents ranking airport lounge access as their most valued travel-related credit card perk. This preference surpasses other perks like security fast-track (9 per cent) and airport transfers (7 per cent). Moreover, 90 per cent of Indian respondents expect lounge access with any credit card that carries an annual fee, and 89 per cent indicated they would consider switching cards if lounge access were discontinued. This underscores the importance of travel benefits for customer retention.
The Bus Pass is an industry-first initiative, offering significant savings and value-based benefits for repeat bus users. Cleartrip’s consumer data reveals that 32 per cent of its users are frequent travellers, repeating bookings within the last three months, while 15 per cent of users book at least three times during the same period.
In addition, 93 per cent of respondents agreed that travel rewards influence their everyday spending patterns, with 45 per cent ranking travel benefits as the most important factor when choosing between credit cards. These insights reflect the substantial role travel-related rewards play in both acquisition and engagement strategies for financial services providers.To meet the evolving needs of Indian travellers, Collinson International has expanded its network of airport lounges and travel experiences by 15 per cent in the last year. Through its Priority Pass program, Indian travellers now have access to over 70 airport lounges and experiences across the country, and more than 650 across Asia Pacific. Globally, the Priority Pass network includes over 1,600 lounges and travel experiences in 145 countries.
“As Indian consumers continue to prioritise travel and seek better experiences, brands can leverage travel-related benefits to enhance customer satisfaction, differentiate themselves from competitors, and drive business growth,” added Prakash.
