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With travel trends changing rapidly, the tourism industry has undergone significant transformations in recent years. In response to the growing preference for touch-free and contactless experiences, digital payment technologies like contactless payments and tokenisation have become indispensable drivers of the tourism industry and adopted easily by consumers the world over.
The surge in demand for digitisation and behavioural shifts has had an impact on the global tourism sector. Notably, the rapid adoption of Near-Field Communication (NFC) technology stands as a prime example of this transformative shift. With a simple tap of their card or mobile phones enabled with card payments, travellers can now make payments effortlessly in several countries, further streamlining their journey and enhancing their overall experience. Here are some of the significant shifts in travel trends:
Enhancing travel convenience with supercharged solutions
The emergence of super apps has revolutionised the way travellers’ access and utilise various services. As app fatigue sets in, users are preferring to book their travel itineraries on a single super app which will increasingly recommend travel products based on AI and Machine Learning.
The report by Collinson highlights a significant shift in consumer perception, with 76 per cent of Asia Pacific respondents valuing brand experiences as crucial as products or services. This reflects the preferences of the customers seeking hyper-personalisation. The research also reveals a rising appeal for travel-related rewards in loyalty programs, with 90 per cent of consumers interested, notably in Vietnam, Malaysia, Thailand, India, and China.
These super apps are also efficient in handling payments predominantly from credit and debit cards which are more often than not likely to be tokenised cards stored on the app for safe and seamless payment.The power of flexible payment methods
Travellers seek service offerings that can adapt to their needs with minimal hassle, including uncomplicated refunds, cancellations, and rescheduling.
66% of Asia Pacific consumers consider flexibility in their activities as highly important in 2022, as per a report titled ‘Post-pandemic Travel Rebound’ by Visa and Kantar. This growing trend towards customisable and adaptable travel experiences has led to an increased demand for payment methods that offer the same level of convenience and flexibility. A credit/debit card empowers travellers to make payments easily and securely from anywhere in the world, at any time.
Travellers can choose to pay in installments, split payments among multiple individuals, or utilize various payment methods such as credit or debit cards, forex cards, e-wallets, and more. This flexibility allows them to manage their finances according to their preferences and budgetary requirements, contributing to a stress-free travel experience.
Prioritising well-being: Rise of wellness tourism
With the government’s efforts towards establishing equitable access to affordable healthcare services and facilities for all under the aegis of the G2O Presidency, the impact of wellness tourism will only be stronger in India.
As per research, 21% of international travels are wellness-driven, showcasing the strong connection and potential of traveling for health. The opportunity in the wellness tourism sector in India is substantial, with projections indicating the creation of employment opportunities for approximately 24 million people by 2032, demonstrating its significant contribution to the country’s economy.
In the wake of global upheaval post Covid, a new travel trend emerged, offering a sanctuary from the noise of daily life – Silence Travel. Travellers embraced meditation retreats and secluded spots, according to travel experts. The Indian travel industry has also quickly adapted to mindful journeys. As silence travel gains popularity, the industry shifts towards meaningful experiences.
Paving the way for responsible tourism
Sustainable tourism has taken the front seat with customers consciously trying to minimise their impact as they fulfill travel aspirations. The sector is expected to grow at a CAGR of 15% in India as per the ‘Charting the course for India – Tourism Megatrends Unpacked’ Report by Visa and EY.
A significant 52% of Asia Pacific consumers are willing to pay a premium for sustainable travel options, underscoring the increasing demand for environmentally friendly choices, and Gen Z and Millennials take the lead in this segment as highlighted in the Visa – Kantar report.
The global sustainable tourism market holds a staggering value of USD 180 billion. This figure demonstrates the increasing demand for sustainable tourism experiences and offerings on a global scale. Travellers are seeking destinations, accommodations, and activities that align with their values of environmental responsibility, social impact, and cultural preservation.
Culture Consciousness
Travellers are no longer satisfied with simply visiting popular tourist destinations; they seek unique cultural connections that allow them to engage with local communities and create lasting memories. While this implies discovering cities from a local lens, or cultural immersion through food, the choice of payments is still predominantly digital.
Digital payment companies have the opportunity to forge stronger bonds between merchants and consumers by bridging the gap between cultures and facilitating seamless cross-border transactions, wherever the consumer wants it.
Through innovative payment solutions, travellers can support local businesses, artisans, and service providers, contributing to the preservation and promotion of cultural heritage. This fusion of technology and tourism creates a virtuous cycle, enriching the travel experience while fostering a deeper understanding and appreciation of diverse cultures.
The author is Business Head, Cross Border Payments (India & South Asia), Visa
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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