Visa, one of the global leaders in payments technology, released a study that explores the mega-trends reshaping and accelerating the growth of travel and tourism. The research forecasts a staggering 193 per cent growth in outbound travel for Indians above 65 years of age, during the decade ending 2025.
Interestingly, the estimated annual growth in outbound travel amongst Indians, stands at 11.4 per cent y-o-y (year-on-year) for the 65+ age group, higher than the projected 4.9 per cent increase for those below 34 years and 6.4 per cent for the age bracket 34-64 years. This growth can be attributed to the growing preference among older travellers towards outbound travel and combining medical treatment with vacation. Globally, travellers aged 65+ will more than double their international travel to 180 million trips, accounting for one in eight international trips.
The study further highlights that India ranks 4th in the Asia Pacific region and 9th worldwide, in terms of cross-border spends on medical services. The report examined cross-border spending for medical services in more than 176 countries.
TR Ramachandran, Group Country Manager, India and South Asia, Visa said, “The growing income levels among the Indian middle class are creating a new ‘travelling class’. That combined with the preference for outbound travel of Indians above 65 years of age and increased connectivity is changing the outbound travel landscape in a very different way. Unlike earlier days, older travellers can afford bigger trips and are more focused on comfort and health than saving money. At Visa we understand the role of tourism as a sustainable economic growth driver. Insights such as these help industry stakeholders and governments build capabilities to address these needs and ensure that the economic impact of tourism goes further.”
The study looked at current travel patterns across the globe combined with industry estimates and forecasts for travel, estimating that close to 282 million households will plan at least one international trip per year by 2025, up nearly 35 per cent from 2015. Among those households most likely to travel internationally, Visa’s study estimates that spending will reach an average of US$5,305 per household, per year, by 2025.
The study also identified key drivers expected to impact global travel over the next decade, including a growing middle class globally, greater Internet connectivity, and improved transportation infrastructure across many countries, and an aging global population with more time for leisure travel.
Visa partnered with Oxford Economics to create detailed travel and tourism forecasts with 50 of the largest economies in the world and collected data from 750 major cities worldwide to analyse how three key trends – traveling class, aging, and connectivity – will impact the 50 markets for outbound tourism. The analysis and insights will help Visa to provide better solutions to each of the markets.
