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24 Apr, 2018

Japan overtakes U.S. as world’s most popular destination, Visa Study shows

Dubai, 23 April 2018 – Japan has overtaken the United States as the most popular destination for global travelers in the past two years, Visa’s Global Travel Intentions (GTI) Study 2017. The study said, “Regional preferences prevail, though, with travelers in the Asia Pacific region leaning heavily toward Japan as a travel destination.”

Full text of the press releases issued in Dubai and the earlier one issued in February follow:

Dubai, UAE: April 23, 2018: Visa (NYSE:V), the global digital payments corporation, today shared the Gulf Cooperation Council (GCC)-related findings of its comprehensive look at global travel and tourism trends at the Arabian Travel Market 2018.

Visa’s Global Travel Intentions (GTI) Study highlights various parts of the travelers’ journey and found that travelers from the United Arab Emirates, Kingdom of Saudi Arabia and Kuwait rely heavily on online sources at every stage of travel and 97%, 93%, and 85%, respectively, gained online access while overseas. The study also uncovered certain aspects of travel that can lead to anxiety and stress, including getting, carrying and exchanging cash.

“Technology is integral at every stage of the modern GCC travelers’ journey, from planning through to the destination and returning home,” said Marcello Baricordi, General Manager for Middle East and North Africa (MENA), Visa. “It is vital for the travel industry to understand how travelers gather information and make decisions. The increasing use of online tools means we should be using these platforms to connect with our consumers at every step of their journey.”

“Our study has also found that digital payment is relevant because travelers want a reliable, secure and convenient experience, without the worry of carrying cash. Visa’s cashless solutions offer travelers the freedom of acceptance at more than 46 million merchant locations worldwide, the peace of mind of being protected by Visa’s global, secure network – backed by multiple layers of security, and the added benefit of a competitive exchange rate when they pay in local currency. As more people travel internationally in 2018, we look forward to helping travelers make the most of their trips.”

 

2018 Macro Trends in Travel

In addition to examining the motivations and planning tactics, the GTI Study of outbound travelers from 27 countries and territories also uncovered a number of macro trends expected to continue into 2018:

  • Trips are getting shorter: The global average is now eight nights, down from 10 nights on average in 2013.
  • More trips abroad: Globally, people are planning to take more trips in the future, from an average of 2.5 trips in the past two years to 2.7 trips in the next two years. The Americas lead the pack in number of trips in the past two years, taking an average of 3.2 trips in 2017.
  • Technology is helping some travelers better navigate their destinations: 88 percent of travelers gained online access while abroad. Almost half (44 percent) use ride-sharing apps to get around once they are on the ground.
  • Multi-destination: 11 percent of global travel includes visits to multiple countries.
  • Japan, the United States and Australia are the most visited countries: Japan has overtaken the United States as the most popular destination for global travelers in the past two years. Regional preferences prevail, though, with travelers in the Asia Pacific region leaning heavily toward Japan as a travel destination. American travelers prefer continental Europe, though Mexico, Canada and Japan are also highly desirable.
  • Top spenders: Saudi Arabians are the top spenders when it comes to what travelers spend on their entire trips, including the booking stage as well as expenditures at the destination, with Chinese, Australians, Americans and Kuwaitis rounding out the top five.

Simplifying Payment Abroad

Travelers are increasingly using technology to plan their trips and navigate their destinations – 83 percent of travelers used technology for this purpose in 2017 compared to 78 percent in 2015. Yet the majority of them are still decidedly analog when it comes to making payments internationally.

While many travelers use cards while on vacation, most (77 percent) still prefer to use cash when making purchases. Using a Visa card to pay in local currency could help international travelers get a more competitive exchange rate and possibly help them avoid being hit with hidden currency conversion fees when they get home. The Study also found the following themes related to the use of cash while traveling internationally:

  • Cash causes anxiety: Travelers cited loss of cash or theft as a top money concern while on trips.
  • Big Spenders: The average global traveler spends US$1,793 per trip, yet the global median amount of cash brought to destination globally clocks in at a whopping US$7781.
  • Trade-off: In order to travel with that much cash, 72 percent of people prepared their foreign currency prior to their departure date.
  • Telling sign: Only slightly more than one in ten people made an ATM withdrawal at their destination. Security at ATMs is one area of concern affecting this statistic, cited by nearly one in five travelers as a barrier to using an ATM. Travelers from Europe, the Middle East and Africa are, however, more likely to withdraw cash during vacation compared to those from other regions.
  • Leftover cash: A whopping 87 percent have leftover cash after their trips, but only 29 percent convert it back to currency they can actually use at home. The global median leftover amount is US$123.

“We are excited to see the desire for global travel grow as technology becomes integral in every stage of the travelers’ journey,” said Lynne Biggar, Chief Marketing and Communications Officer, Visa. “Using your Visa card abroad means a safe, secure, seamless and convenient experience, without the worry of carrying cash. As more people travel internationally in 2018, we look forward to helping travelers make the most of their trips.”

Tips for Stress-Free Payment While Traveling

  • Use your Visa card to pay in “local currency” to get a competitive exchange rate and help avoid getting stuck with hidden currency conversion fees when you get home.
  • Use a credit or debit card for purchases. Visa offers security, convenience and ease when paying abroad. It may be considered safer than carrying cash, and is backed by Visa’s Zero Liability Policy2, which states accountholders won’t be held responsible for unauthorized charges on their account.
  • Whenever possible, pay through a chip-activated terminal when using your credit or debit card for enhanced security.
  • Look for the Visa or PLUS logo at any point-of-sale terminal or ATM to ensure these international payment cards are accepted.

More GTI Findings

The average global traveler spends US$1,793 per trip. Travelers expect to spend more in upcoming trips, with the highest likely increase in the Asia Pacific.

 

Intended spend for next leisure travel versus previous trip (Median US$)*
Region       Last trip       Next trip       Percent change
Global       US$1,793       US$2,443       + 36.25%
Africa & Middle East       US$2,666       US$2,666       0%
Asia Pacific       US$1,677       US$2,443       + 45.68%
Europe       US$1,174       US$1,409       + 20.02%
North and South Americas       US$2,248       US$2,840       + 26.34%
                         

Among the top global spenders, travellers from Australia, China, Kuwait and the United States remain optimistic when it comes to spending for their upcoming overseas travel. Saudi Arabian respondents are still the number one spenders, but are projected to spend less on their next international trips.

 

Top five global markets – intended spending amount for next international trip (Median US$)**
      Saudi Arabia       China       Australia       United States       Kuwait
Next trip     US$4,800       US$4,034       US$3,529       US$3,500       US$3,474
                                       

Top five global markets – amount spent on last international trip (median US$)*
      Saudi Arabia       Kuwait       China       Australia       UAE
Last trip     US$5,333       US$3,143       US$2,988       US$2,745       US$2,722
                                       

For more information about Visa’s Global Travel Intentions Study visit Visa.com/TravelStudy.

About Global Travel Intentions 2017

The Global Travel Intentions Study analyzes travel behavior and tourism spending patterns of global travelers. A comprehensive study monitoring and analyzing international travel trends and consumer travel behavior, the Study is part of Visa’s continued commitment to helping industry players in their pursuit of growth in the global travel and tourism industry. Visa’s GTI Study was conducted in conjunction with research and business intelligence firm ORC International and collected data over the course of 15,500 interviews in 27 markets. Visa has been conducting this biannual study since 2008. Where possible, trends are shown.

About Visa Inc.

For more information, visit usa.visa.com/aboutvisa, visacorporate.tumblr.com and @VisaNews.

1 US Dollar equivalent of local currencies
2 Visa’s Zero Liability Policy does not apply to Visa corporate or Visa purchasing card or account transactions, or any transactions that are not processed by Visa. For specific restrictions, limitations and other details, please consult your issuer.
* Median amount intend to spend for next trip (USD)
** Median amount spent last international trip (USD)