Saturday, 9 July 2016

UK households set for travel spend boom

A STUDY commissioned by the Visa payment card organization has forecast significant growth in international travel by British households in the next decade. UK spend on global travel is predicted to reach £63.4 billion in 2025, up 58 percent on 2015.

On average, each UK household is set to spend £9,300 annually by 2025, up from £6,500 in 2015.

The study, conducted by Oxford Economics, looked at current travel patterns of Visa-branded cardholders across the globe combined with industry estimates and forecasts for travel.

According to the study, the Brits will rank as the second-highest spenders on foreign travel in Europe by 2025, just slightly behind the Germans, and the fourth globally.

Spend by older travellers is forecast to drive overall growth in the UK over the next decade. The number of outbound trips taken by over 65-year-olds is set to grow at 6.5 percent annually between 2015 and 2025, compared with 3.8 percent for 35-64 year-olds, and 1.3 percent for under 34 year-olds.

Globally, estimated cross-border travel around the globe will rise steeply to £979.9 billion in 2025, when China is predicted to have the highest level of household spending, reaching £167.1 billion.

The study identified key drivers expected to impact global travel over the next decade, including a growing middle class globally, greater internet connectivity, improved transportation infrastructure across many countries, and an aging global population with more time for leisure travel.

Kevin Jenkins, managing director UK & Ireland, Visa Europe, commented: ‘Britons’ love of travelling shows no signs of abating. In the next decade, we’ll see an expanding travelling class that will spend a growing portion of their household income on international travel.’

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