Travel expenditure grew by 165 pct during the holiday season in 2022: Report

A new report that examines digital payment transaction trends between the annual holiday seasons has found an interesting difference in the spending between 2022 and 2021 The PayU platforms Insights Report Festive edition revealed that the spending increased by 64 per cent and the number of transactions by 31 per cent in 2022 compared to 2021The report also depicted the overall impact of the epidemic on Indians embrace of digital payments throughout the holiday season Between the normal time of 2019 and the postpandemic period of 2022 there has been a 245 percent increase in spending and a 130 percent increase in the number of transactionsIndias strong credit preferenceThis season credit cards were the most popular form of payment Interestingly despite the fact that there are 12 debit cards for every 1 credit card credit card users spent nearly 5 times as much overall in 2022 In 2022 a credit card user typically spent Rs 6000 compared to a debit card users Rs 2500 Transactions and purchases made using credit cards increased 42 per cent and 84 per cent respectively year over year Banks giving cashback reward points discounts special offers and addon services on cobranded cards and freestanding cards may be one factorThe fact that repayment of credit ie personal loans for consumers and enterprises experienced a 107 per cent increase in expenditure and a 105 per cent increase in transactions over the previous holiday season further reflects the desire for credit Credit repayment ranked among the highest categories for UPI spending indicating that more Indians are utilising UPI to pay back personal debts Debit card transactions decreased by 34 per cent which is not surprisingRevenge tourism is the rageWhether driven by extended Diwali weekend or retaliation tourism Indianss spending in the travel and hospitality sector increased by 165 per cent throughout the course of the holiday season Indians not only travel widely but they also use various forms of transportation The cost of cabs increased by 121 per cent the cost of rail reservations increased by 50 per cent and the average ticket size increased by 33 per cent The typical ticket size increased by 95 percent for airlines The cost of vacation packages increased by 70 percent and the average ticket size increased by 341 per centUPI driving digital payments adoption for daily usecasesThe number of transactions climbed by 133 per cent and spending increased by 124 per cent when compared to 2021 likely reflecting the economic recovery and growing UPI usage by small firms and consumers Its interesting to note that the typical ticket size for UPI transactions has decreased slightly minus 4 per cent The fact that consumers used UPI for lowpriced products like groceries and city transit and entertainment may be the cause of the drop in ticket size Mumbai Bangalore Hyderabad Chennai and Delhi NCR are the top 5 cities that contribute to the most UPI transactionsDigitisation and economic expansion led to the growth of financial servicesTransactions and expenditures rose by 100 per cent and 143 per cent respectively in the banking and insurance sectors This overarching feeling is seen in all BFSI categories overall spending in the insurance sector increased by 41 per cent possibly as a result of economic growth regulatory changes and rising insurance penetration Investments experienced a 66 percent rise in spending and a 50 per cent increase in average ticket size Postpandemic behavioural shifts and greater usage of DIY wealth management platforms may be contributing factorsOTT and gaming leading digital entertainment adoptionThe entertainment sector saw increases in transactions and spending of 54 per cent and 52 per cent respectively Gaming spending increased by 20 per cent OTT spending by 80 per cent and transactions by 175 per cent However spending and transactions linked to seeing movies in person and going to live events decreased by 11 percent and 43 percent respectively This may be due to habits formed during the epidemic OTT preference and avoiding public settings which persisted after the pandemicAlso Read Here are seven travel trends to watch out for in 2023This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever