• Travelers believe digital payments can safeguard the travel experience, with 71% opting for digital wallets during trips
• Most travelers (80%) used the same domestic card while traveling, owing to acceptance and lower fees
• Top 3 countries for KSA travelers are Egypt, UAE, and Bahrain
• More than half (53%) surveyed KSA travelers expressed a keen interest in embracing sustainable travel options to combat environmental damage
Riyadh, Saudi Arabia-: KSA outbound travelers are increasingly safeguarding their travel experience through digital payments, with 71% opting for digital wallets during trips, according to the 2023 Global Travel Intentions Study by Visa (NYSE: V), a global leader in digital payments. The study also finds that intra-regional travel is as popular as inter-regional travel among KSA travelers, with most trips taken within the CEMEA region (74%), followed by Europe (32%) and Asia Pacific (29%).
The Visa Global Travel Intentions Study, which highlights emerging trends in consumer behaviors and preferences for outbound cross-border travel, is based on a survey conducted among KSA residents between the age groups 18-55 who traveled overseas for leisure in the past year and intend to travel further this year.
Ali Bailoun, Regional General Manager, KSA, Bahrain & Oman, Visa, said: “The latest Visa Global Travel Intentions Study reflects Saudi Arabia’s robust travel sector and a strong shift towards digital payments, signaling a surge in consumer confidence. KSA travelers increasingly seek to enhance their travel experience, which they can do by taking advantage of Visa’s privileges and discounted offers. We are dedicated to using these insights to meet the changing needs of global travelers with secure, convenient, and innovative payment solutions.”
KSA Outbound Travel Insights:
Surge in Travel:
The Global Travel Intentions Study found a significant surge in travel activity, with no signs of slowing down, even amidst rising costs. As per the sample of KSA outbound travelers surveyed, Egypt, UAE, and Bahrain are the top destinations for travel in the last 12 months. Despite 8 in 10 KSA travelers noting increased travel expenses, only 3% would consider postponing or canceling their trips, indicating a robust and enduring enthusiasm for travel. Surveyed KSA outbound travelers took an average of nearly 2 international trips for an average of 13 days in the last 12 months. Travelers prioritize trips for relaxation (54%), followed by shopping (36%), the need to meet family and friends (35%), exploring something new (25%), and seeking adventures (26%).
Most surveyed travelers (62%) prefer independent travel over packaged tours as it provides greater flexibility and control over their travel arrangements in case of last-minute changes.
Travel Spending Patterns:
The findings of the Global Travel Intentions Study show families traveling with older kids are the biggest spenders (66%) at destinations among all the demographic profiles, while millennials and families traveling with young kids tend to spend most before the trip. During travel, the largest spending categories include dining, activities, shopping, and local transport. The study highlights that digital wallets (71%) have become an integral aspect of spending, in addition to credit cards. While affluent travelers used digital wallets 8% more than the average traveler, 80% of surveyed residents habitually used the same card that they used for domestic expenses in KSA while traveling. In addition, convenience and acceptance are the primary factors influencing the choice of card.
Payment Concerns Pre-Trip:
Most travelers (88%) had payment concerns before their trip. Among the top fears were concerns about card acceptance (26%), ATM withdrawal costs (23%), and card declines (22%). While older travelers above 60 years were most worried about card acceptance (58%), affluent travelers (67%) had cash-related concerns.
Embracing Sustainable Travel Options:
About three-quarters of Saudi travelers (72%) are aware of eco-friendly travel, and nearly half of them (49%) actively sought out sustainable travel choices during their most recent trip. Sustainable accommodation (32%) and energy-efficient transport (25%) were top on their list while traveling sustainably. Yet, most (76%) struggle to access the information required to make sustainable travel choices. Providing more information on sustainable travel could drive more interest and adoption of sustainable options.
Visa Integrates Benefits to Complement Travel Itinerary
Planning an itinerary can be quite a complex affair, where travelers are always on the lookout for the next best deal. Visa delivers autonomy to cardholders by providing them with a range of discounted choices for hotel offers, car rentals, travel insurance, and concierge services during the planning and booking phase, including Booking.com, Avis, Jumeirah hotels, and the Visa Luxury Hotel Collection.
In addition to many privileges during the day of travel including airport transfers, airport check-in and baggage transfer offers, meet and assist, airport lounges, and more, Visa enhances the travel experience with tickets to popular tourist attractions and emergency medical attention during their times of need.
More importantly, travelers need to feel safe during their trip. While supporting digital payments to enhance the travel experience, Visa’s added security features support travelers in the event of card loss and fraudulent card misuse.
