Growing income levels around the world are creating a new “travelling class.” By 2025, it is estimated that nearly half of all global households (945 million) will be within this income range, spurring greater international travel and spending, particularly by households from emerging markets.
More households in Australia and around the world will be packing their luggage and heading to overseas destinations for annual holidays in the next decade. According to a new Visa report, some 109 million Asia Pacific households are expected to take at least one international trip per year by 2025, up 65% from 2015. In Australia, the number of households taking an international trip is expected to rise to five million households, up 12% from today.
Visa’s report “Mapping the Future of Global Travel and Tourism in Asia Pacific” forecasts travel and tourism trends in the next 10 years (2015 to 2025). Among those households most likely to travel internationally, the report finds that in Australia, average spend on international trips is expected to rise from AU$7,069 (US$5,315) per household in 2015 to AU $8,430 (US$6,339) in 2025.
The report also identified key drivers expected to impact global travel, including a growing middle class, greater internet connectivity, improved transportation infrastructure across many countries and an aging global population with more time for leisure travel.
“Travelling internationally will become more common and attainable in the future thanks to changing demographics, combined with technology advances that make travelling abroad easier and less expensive,” said Wayne Best, Chief Economist, Visa Inc. “What will emerge is an expanding “travelling class” that will spend a growing portion of their household income on cross-border travel. Tomorrow’s travelling class will likely be older and hail from emerging markets – looking very different from today’s typical international traveller.”
Millions of cardholders can take advantage of the enhanced security of chip card payments–whether they’re an ocean away or just a few blocks down the street. As of August 2015, nearly 142 million Visa chip cards have been issued in the United States, the most of any country in the world.
A recent change in Visa’s acceptance rules has helped boost the approval rate for Visa chip transactions overseas, which currently stands at 96.9%. Visa now requires businesses with terminals unattended by a store employee to accept international chip cards without PINs or signatures. That means travellers can use their chip cards at train ticket kiosks, bike sharing stations, vending machines, and parking meters with convenience, security, and ease.