×

Older traveller behaviour to change travel market dynamics

By Wayne Best, Chief Economist • Visa

September 05, 2016

It’s not just tech that can disrupt a sector, but also changing behaviours and demographics that also drive strategic changes. Visa’s international travel insights report shows how the travel sector could change as the preferences and behaviours of older travellers’ impact travel and tourism over the next decade.

What the report found is that the combination of an aging population, increased connectivity, and a rising global middle class is going to significantly increase the number of households – 282 million by 2025, a 35 per cent increase from 2015 – that will plan to travel internationally.

Aging population

The aging population is changing the travel landscape in a very different way. By 2025, travellers aged 65+ will more than double their international travel to an estimated 180 million trips, accounting for one-in-eight international trips globally. While travellers in this age bracket take fewer trips, they tend to take longer trips and spend more while abroad.

Outbound Trips by age

Increased connectivity

Increased connectivity will also have a real impact by changing the way people travel as well as making it much more affordable. With 340 new airports expected to be built over the next decade and new technologies increasing Internet connectivity, how people travel will change dramatically.

Among those households most likely to travel internationally, Visa’s study estimates that spending will reach an average of $5,300 per household, per year, by 2025.

Share this post

Like this post

Related Articles

Has the time arrived for biometrics?

July 14, 2016

Recent Visa research shows that 73% of people would like to use biometrics as a form of two-factor authentication. So how are we responding to the exciting opportunities offered by biometrics?

Jonathan Vaux Read More

Have all generations in Slovenia really gone digital?

August 18, 2016

How do Slovenes behave as customers? What are the observable trends? How can Visa’s Digital Strategy help on the way towards the future of payments? These are just some of the questions that were answered at the Visa Conference, organised in Slovenia in June.

Alenka Mejač Krassnig Read More

Showing our working

October 25, 2013

Anyone who studied maths at school remembers being told to “show your working”. The idea was that even if your final answer wasn’t perfect, how you got there would gain you marks.

David Morris Read More

Is it time to say goodbye to cash?

August 06, 2014

If I asked you to design a payments system from scratch today, it’s unlikely you would suggest pieces of paper and bits of metal as the medium of exchange.

Nick Mackie Read More

Tokenisation – in the cloud and around the world

May 18, 2016

With the launch of Android Pay in the UK, Sandra Alzetta looks at the enabling payment technologies – the token service. And, its most recent innovation – device-based cloud.

Sandra Alzetta Read More

In the lead, yet still catching up

January 19, 2016

A contradiction? Not really.

In card payments, the Czech Republic is a country of contrasts. On the one hand, we set an example in innovation and, in many respects, show others the way (especially in the use of contactless technologies and mobile payments).

Marcel Gajdos Read More

Kevin Jenkins talks retail trends with the Telegraph

January 12, 2016

We released our Future of Retail study in November 2015, looking at the trends affecting this industry and the factors influencing changes in consumer behaviour.

Kevin Jenkins Read More