Expedia Group recently presented the results of a study highlighting the travel preferences of the growing Asian middle class, particularly those who make up the group of upper income or mass-affluent travellers.
The study provides travel industry professionals with the context to better serve the increasing number of Asian mass-affluent travellers and specifically tailor offerings to their preferences.
Research was conducted in partnership with Atomik Research, including a survey featuring 4,000 respondents from across Asia.
According to Expedia’s chief commercial officer Greg Schulze: “We’ve witnessed firsthand the remarkable growth of the Asian travel market and are committed to providing unparalleled insights and solutions to our partners By leveraging our industry-leading technology, extensive global network, and deep understanding of traveller behaviour, we’re able to deliver personalised experiences that resonate with Asian consumers. Our innovative platform empowers partners to reach travellers at every stage of their journey, from inspiration to booking and beyond.”
Increased spending despite inflation
Through deals, discounts, and packages or, for many, a tendency to prioritise travel over other forms of discretionary spending, mass-affluent Asian consumers are finding ways to alleviate the impacts of inflation and keep room in their budget for travel.
These travellers plan to spend an average of 23 percent of their income on travel in the next 12 months, and four in five report travel is a priority despite inflation. Moreover, nearly two in five said they would prioritise travel over buying a new car or upgrading electronics, and close to one in three on dining out.
Investing in long-haul tours and experiences
While many mass-affluent Asian travellers plan to visit other countries in the Eastern and Southeastern Asian regions, a significant number are drawn to international destinations farther afield. Overall countries such as Japan, the United States, Canada, France, South Korea, Australia, and Germany top their lists.
On average, these travellers plan four destinations over ten days for the next international trip. Interestingly, travel length and total destinations vary significantly across regions.
Indian travellers plan for longer trips, averaging 14 days compared to Vietnam’s with the lowest length at 8 days. Indian travellers often plan for five or more destinations on their next international trip, while Singaporean, Chinese, Vietnamese and Indonesian travellers often report planning for four or fewer.
When it comes to travel planning, more than one in three respondents relied on travel agents, 72 percent said they use platforms like Expedia when booking. They commonly cite using a travel app for booking hotels, booking flights, and finding activities or excursions. This reliance on digital tools is further emphasised by the fact that 83 percent of people in Asia-Pacific have a travel brand’s app installed on their device, and 36 percent use the app regularly.
Seeking a luxurious experience
The survey found that mass-affluent Asian travellers prioritise premium amenities and high-end accommodations, making these key factors for partners across the industry. To meet this demand, Expedia Group offers a wide range of tools and resources to help partners attract and convert these discerning travellers.
Despite regional variations, flight upgrades, premium accommodations, and exclusive experiences are top of mind. Chinese, Singaporean, and Vietnamese travellers strongly prefer gourmet dining, while Indian travellers favour first-class or business-class seats and Indonesian travellers desire private tours.
Across the board, airline and accommodation upgrades emerge as the two most popular choices. All-inclusive packages are one of the most likely buys among travellers in India, Indonesia, and Vietnam.
Peter O’Connor, co-director of the Centre for Enterprise Dynamics in Global Economies (C-EDGE) at the University of South Australia, said of the findings: “The mass-affluent consumer market in Asia is rapidly emerging as one of the most crucial population segments to reach and serve,” stated. “With their inclination towards long-haul trips and a preference for luxury amenities, they are poised to significantly impact the travel economy, as indicated by this research. Expedia Group’s latest insights highlight the growing demand for personalised and premium travel experiences among Asian middle-class travellers.”