Travel takes top spot in S’pore consumer spending


Tourists at the iconic Merlion in Singapore. The financial district towers in the background.Merlion Singapore

SINGAPORE: Travel takes the top spot in Singaporeans’ spending priorities for non-essential items, with most willing to fund their expenses through instalment payment options such as buy now, pay later (BNPL) schemes, shows a recent survey.

BNPL services generally allow consumers to spread out their payments at zero interest, but charge late fees.

They take a cut from merchants for each sale.

Analysts and industry players told The Straits Times that consumers are increasingly opting for such services because of their convenience.

But some said safeguards need to be in place to protect users.

A recent survey by travel tech company Amadeus found that 46% of consumers said international travel was a priority area for spending in the coming year.

This was much more than fashion, eating out and big-ticket items such as a new car.

Eating out was important to 37% of the 500 Singaporeans polled in June, while 29% prioritised fashion purchases, and just 24% wanted to spend on big-ticket items such as a new car or home furnishings.

The respondents were aged 18 and above and had a range of income levels.

The survey also found that Singaporeans have the most appetite for international travel, coming ahead of German, French and US consumers.

A total of 4,500 consumers in France, Germany, Britain, the United States and Singapore were polled for the survey.

Singaporean travellers are more likely to spread out their expenses to avoid high foreign exchange transaction fees and dip into loyalty points they previously collected, showed the survey.

About 95% said they might choose instalment options such as BNPL services to fund their travel over the coming year, topping the global average of 75%.

This figure also beats the 57% of those polled here who said they might use a credit card. — The Straits Times/ANN

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Singapore , travel , international , buy now pay later , car ,

   

Next In Business News

IHH sees upside potential now Fortis MTO hurdles resolved
Ringgit slides further against US dollar
Trading ideas: KTB, Ivory Properties, Mynews, PT Resources, Poh Kong, Apollo Food and VS Industry
Bursa maintains decline as Wall St drags markets lower
US dollar likely to keep going strong
World Bank lowers 2023 growth target for M’sia
VS Industry resolves labour shortage issue
Physical stores to drive Beshom sales
Apollo Food cautious about challenges ahead
Poh Kong posts RM29.8mil earnings in 4Q

Others Also Read