According to the 2024 travel benefits and Customer Engagement Report by Collinson International, Millennials in India are spending more on travel than any other generation. On average, Millennials are spending $6,031 annually on travel. This is much higher compared to Gen Z, Gen X, and Baby Boomers, who spend $2,622, $3,059, and $2,600, respectively, each year.
Travel is a top priority for millennials in India
Travel is the biggest expense for Indian Millennials, making up 34% of what they spend each year. This shows how important travel is to them. A survey of 7,250 people from 14 countries in the Asia-Pacific region found that, for Indians in general, travel is the second biggest expense after everyday things like groceries and shopping.
The report also indicates that nearly half 48 percent of Indian Millennials place great importance on travel-related benefits when choosing a credit card. Features like earning and redeeming miles, airport lounge access, exclusive travel experiences, and travel insurance are highly valued. The demand for these perks shows that Millennials want their credit cards to support their travel habits, making travel an essential factor in their financial decisions.
Sumit Prakash, the head of Collinson International in India and South Asia, said that more Indians are traveling, and Millennials are spending more on trips. This shows that there is a big opportunity for brands, especially in banking and financial services, to offer products and services that can benefit these travelers.
When it comes to travel perks, airport lounge access is at the top of the list for Indian consumers. A large 44 percent of survey respondents ranked lounge access as the most important benefit of travel-related credit cards. This is far ahead of other travel benefits, such as fast-track security 9 percent and airport transfers 7 percent.
Surprisingly, 90 percent of people expect airport lounge access to come with any credit card that has an annual fee. Also, 89 percent said they would think about changing their credit card if their current one stopped offering lounge access. This shows how important this benefit is for keeping customers loyal.
Travel perks influence credit card choices
Travel-related rewards are also a strong driver of credit card preferences. The survey found that 93 percent of Indian respondents are more likely to use their credit cards for both daily expenses and travel if their card provides travel-related rewards or benefits. Around 45 percent of people said that travel perks were the most important factor when choosing between credit cards, placing these benefits above everyday rewards, card prestige, and even sign-up bonuses.
