Travelers are expecting to spend more on vacations, and to extend their trips for longer, compared to last year
BOSTON, March 08, 2023 (GLOBE NEWSWIRE) — A new research report out today from Flywire Corporation (Nasdaq: FLYW), a global payments enablement and software company, reveals that 83{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} of luxury travelers surveyed plan to spend more on travel in 2023 than they did in 2022. And as the demand for unique travel experiences is expected to remain strong, 84{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} of luxury travelers surveyed said their next few vacations will be longer than the ones they took over the past 18 months.
Flywire’s annual luxury travel report surveyed more than 600 U.S. adults to uncover the patterns and priorities that will help shape the industry in 2023.
“Our recent research suggests that there’s a strong desire among travelers to continue to invest in unique travel experiences around the world,” said Colin Smyth, VP and GM of Travel and Flywire. “Based on our data, vacations, on average, are expected to be longer this year compared to last. Travelers are more likely to combine business trips and vacations, and they’re planning to spend more than in recent years. And the rise of the four-day work week, along with hybrid work schedules, is allowing them to travel more in the off-season.”
Travel advisors are critical to achieving the true luxury experience
The report highlighted the value of the travel advisor when creating a luxury experience. 81{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} of respondents say working with travel experts is the only way to have a true luxury travel experience – up from 74{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} last year. Younger generations such as Gen Z and Millennials (63{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}) are more likely to take advantage of the assistance from agents and advisors as opposed to Gen X (54{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}) and most Boomers (45{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}).
While travel advisors and agents can take away some of the stress and manage many pain points – including logistics and payment offerings – additional considerations such as hidden travel restrictions, including last minute COVID-19-related changes, have made agents and advisors more important. The survey found 67{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} could not imagine traveling without an agent/advisor, with 62{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} citing the benefits of agents’ ability to take care of everything.
Hybrid Work and the Expanding Travel Season
The growth in popularity of hybrid work, the four-day work week and more work-life balance may prove to be a boon for the luxury travel industry. There is now no such thing as an “off-season” for travel, as the survey found Gen X (98{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}), Boomers (99{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}) and Gen Z and Millennials (89{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}) agreeing that travel is no longer limited to one season.
People are eager to travel all year round, and 85{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} of those surveyed attribute their hybrid work schedule to their ability to travel more frequently and during periods in which they normally would not have that option. The lines between work and play are becoming blurred as 73{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} say they are more likely to combine business trips and vacations now than in the past.
Travelers are also looking for the opportunity to incorporate special events like the 2023 FIFA Women’s World Cup, 2023 Ryder Cup, or the 2024 Summer Olympics into their trips, with 83{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} of respondents saying traveling for special events allows them to turn trips into longer ones.
Prioritizing Payment Security
As luxury travelers get ready to spend more in 2023, payment security and convenience are of utmost priority. 90{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} of luxury travelers surveyed noted ease of payments for all parts of their trip, such as accommodations, excursions and bookings, as important to them. The research also found payment security concerns are top of mind for almost seven out of ten (69{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}) of all travelers surveyed, and even higher among Gen Z and Millennials (82{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be}). This is a significant increase compared to the 37{8ac304f283d9048aa406820cdb3efba1388565cefcdaf9ad6f054e81ea9085be} of all luxury travelers surveyed last year who expressed payment security concerns.
“As they spend more time on the road, travelers have every right to expect stronger security and greater convenience when it comes to payments,” continued Smyth. “This represents a significant uptick from last year, and the industry should use this as a wake-up call to put in place solutions that can handle guests’ payments securely regardless of payment type.”
To experience the complete report, please visit: Flywire’s annual luxury travel report
Methodology
This survey is among 612 U.S. adults, 18 and older, who have a household income of at least $100,000 a year, traveled at least twice during the past year for pleasure and spend, on average, at least $5,000 per person on vacations considering accommodations, travel, meals and activities. This survey was conducted online between December 9 and 19, 2022. For more information, please visit the methodology page.
About Flywire
Flywire is a global payments enablement and software company. We combine our proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for our clients and their customers.
Flywire leverages its vertical-specific software and payments technology to deeply embed within the existing A/R workflows for its clients across the education, healthcare and travel vertical markets, as well as in key B2B industries. Flywire also integrates with leading ERP systems, such as NetSuite, so organizations can optimize the payment experience for their customers while eliminating operational challenges.
Flywire supports more than 3,100 clients with diverse payment methods in more than 140 currencies across 240 countries and territories around the world. Flywire is headquartered in Boston, MA, USA with global offices. For more information, visit www.flywire.com. Follow Flywire on Twitter, LinkedIn and Facebook
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, Flywire’s business strategy and plans, market growth and trends, and Flywire’s objectives for future operations. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Risks that may cause actual results to differ materially from these forward looking statements include, but are not limited to: political, economic, foreign exchange rate, inflation, legal, social and health risks, including the COVID-19 pandemic and subsequent public health measures that may affect Flywire’s business or the global economy; beliefs and objectives for future operations; and other factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2021 and Flywire’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, both of which are on file with the Securities and Exchange Commission (SEC) and available on the SEC’s website at https://www.sec.gov/. Additional factors may be described in those sections of Flywire’s Annual Report on Form 10-K for the year ended December 31, 2022, expected to be filed with the SEC in the first quarter of 2023. The information in this release is provided only as of the date of this release, and Flywire undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
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