WEX and Mastercard Release Annual Travel Trends and Expectations Report
January 07 2019 - 6:45AM
Business Wire
WEX Inc. (NYSE: WEX), a leading provider of corporate payment
solutions, has released its 2019 Travel Trends and Expectations
report in partnership with Mastercard, which conducted the primary
research. For the second consecutive year, the report yields rich
insight into how U.S. travelers view the travel landscape and how
these attitudes and preferences will impact travel behaviors in
2019. This data is intended to help inform travel companies of the
shifts in the travel market as business planning for the new year
solidifies.
Among the key findings, travel abroad is anticipated to increase
in 2019. In particular, more travelers say they will travel to
Europe in 2019 than in 2018, and Asia/Pacific has become a popular
destination among younger travelers. The data uncovered additional
trends, including:
- AI as the new travel agents: The
data showed a slight increase in awareness of travel bots—which
allow travel booking by voice—from 2017 to 2018, with 21 percent of
surveyed Americans saying they would be comfortable booking a trip
by voice (e.g., with Alexa or Google Home). Nearly a quarter of
respondents among all age groups (23 percent) agree that a digital
assistant would improve the booking experience.
- Travel with a purpose: From yoga
retreats to international hiking trips, cycling adventures,
volunteering or “foodie” tours, all signs point to travelers being
more adventurous in 2019—and younger travelers seem to be driving
this shift. They’re also more likely than Gen X and particularly
Boomers to combine leisure travel with a purpose, such as
volunteering, and to travel to take a class or learn a new
skill.
- Age is more than just a number:
In terms of how people book, older travelers still prefer to book
directly with an airline or hotel while online travel agencies are
more popular with Millennials. Age even has bearing on how
travelers pay for their getaways. Older travelers are more likely
to use their credit cards to pay for travel expenses, while younger
travelers are more likely to use debit cards.
- Sharing economy shaking up
traditional models: The two cohorts that are most open to
sharing economy services like Airbnb and Uber are Gen Z (62
percent) and Millennials (56 percent). For Millennials in
particular (53 percent), the majority sentiment is that sharing
economy services allow them to afford travel. Many respondents also
reported that they use these services because they make them feel
like a local.
- Hotels still rule in
accommodations: The desire for pampered, comfortable
accommodations outweighs the thirst for accommodations that offer
an authentic, live-like-a-local experience. Across age cohorts,
hotels remain the most popular accommodation type. Three quarters
of those who prefer to stay in hotels do so because they like
feeling that everything is taken care of for them. The majority of
travelers also say they prefer staying in a hotel because it makes
them feel like a tourist.
- Personalization inspires younger
consumers to pull the trigger: As expected, younger users are
more engaged with new travel technologies and report being more
open to receiving personalized suggestions digitally. Almost
one-quarter of all respondents (24 percent) would allow a computer
to plan a trip based on data from their previous travel history;
however, Gen Z and Millennials are almost three times as willing to
consider this than Boomers.
“Technology is the thread connecting many of our travel findings
and predictions for 2019,” said Jay Dearborn, president of WEX
Corporate Payments. “The influence of technology on the travel
industry, and on both the imagination and preparedness of today’s
travelers, simply cannot be overstated. It is our hope that this
report provides travel industry professionals with the insights
they need to reach today’s self-directed travelers where they’re
most likely to be: online.”
“Now that we’re in our second year of working with WEX to
develop this report, we’ve been able to compare and track changes
from the previous year, giving us great insight into exactly where
the shifts in Americans’ travel habits and expectations are
occurring,” said Ed Glassman, executive vice president North
American markets at Mastercard. “Disruptive new services and
technologies have made it a very exciting time to be both a
consumer and a provider of travel services.”
Download the full report here.
MethodologyThe 25-minute self-administered web-based
interviews were conducted from Oct. 3, 2018, through Oct. 22, 2018.
There were 1,502 total respondents, with key demographic segments
including, Gen Z, 18-20 (90); Millennials, 21-34 (436); Gen X,
35-54 (556); and Boomers, 55-70 (421). Before taking the survey,
respondents were screened to ensure they had taken three or more
personal (non-business related) overnight trips in the past 12
months.
About WEXPowered by the belief that complex payment
systems can be made simple, WEX Inc. (NYSE: WEX) is a leading
provider of payment processing and business solutions across a wide
spectrum of sectors, including fleet, travel and healthcare. WEX
operates in more than 10 countries and in more than 20 currencies
through more than 3,500 associates around the world. WEX fleet
cards offer 11.5 million vehicles exceptional payment security and
control; purchase volume in its travel and corporate solutions grew
to $30.3 billion in 2017; and the WEX Health financial technology
platform helps 300,000 employers and more than 25 million consumers
better manage healthcare expenses. For more information, visit
www.wexinc.com.
About MastercardMastercard (NYSE:
MA), www.mastercard.com, is a technology company in the global
payments industry. Our global payments processing network
connects consumers, financial institutions, merchants, governments
and businesses in more than 210 countries and
territories. Mastercard products and solutions make everyday
commerce activities – such as shopping, traveling, running a
business and managing finances – easier, more secure and more
efficient for everyone. Follow us on
Twitter @MastercardNews, join the discussion on
the Beyond the Transaction
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the Engagement Bureau.
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WEX Inc.Elisabeth
Andrewselisabeth.andrews@wexinc.com207-523-6121
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