Nine in ten Indians prefer to use credit cards when travelling abroad

• 73% of individuals want to engage in the local cultural experience when travelling abroad
  
• 43% of respondents express that they would look at destinations actively promoting sustainable initiatives.
  
• Relaxation remains the prime motivation for upcoming trips for 51% travellers.
  

Credit cards remain the first choice when it comes to spending when travelling abroad. Several incentives such as travel miles, cashback benefits, rewarding schemes, wide acceptance, favourable foreign exchange rates, and generous spending limits continue to serve as catalysts behind the increasing usage of credit cards when on foreign travel.

A survey by Visa has revealed that 95% of travellers rely on credit cards specifically while journeying abroad, aiming to enhance and streamline their overall travel experience.

Furthermore, 99% of travellers, surveyed in the, ‘Global Travel Intentions Study’ by Visa, prioritise the utilisation of cards—whether credit, debit, or prepaid—during their international trips, highlighting the preference for the convenience and security offered by card-based transactions in a global travel context.

From October 1, new TCS rules have come into effect, where overseas tour packages 5% TCS for spending up to ₹7 lakh and 20% when this threshold is crossed. However, international credit cards are out of the ambit of TCS for now.

The study also throws light on other travel trends…

Sustainable travel is in

43% of respondents express that destinations actively promoting sustainable initiatives would get a preference when looking for a travel destination.

Also, infrastructure holds significant importance for 65% of individuals.

Feeling the local vibes

73% of individuals eagerly anticipate engaging in local cultural experiences, highlighting a growing interest in authentic cultural immersion during travel experiences.

When choosing a destination, the social environment emerges as a top priority for 75% of respondents, including favourable environmental practices and safety measures.

Hotels still the top choice of accommodation

Accommodation preferences among travellers vary. 86% prefer hotels for lodging, while 30% lean towards bed and breakfast setups, and 24% opt for hostels, showcasing a diverse range of choices among travellers based on their preferences and travel objectives.

The selection of a travel destination largely hinges on the availability of leisure activities, as observed in the preferences of 70% of travellers.

Travel, a way to unwind

Relaxation remains the prime motivation for upcoming trips for 51% travellers. Diverse entertainment options (35%), exciting shopping opportunities (27%), and indulgence in local cuisine and dining experiences (26%), are the other key drivers when choosing a travel destination.