The shift to digital payments in Asia is transforming the travel industry, offering convenience and cool perks to travelers. Safety, security, and speed are driving this change, with nearly 80% of people across Asia preferring not to travel with cash. Visa’s latest study shows that 97% of travelers in the region prefer digital payments, signaling a significant shift away from traditional cash transactions. To address the need for cashless transactions, Visa has partnered with local payment giants in China, such as WeChat and Alipay, allowing international travelers to use Visa cards within these platforms.
Visa is collaborating with travel agencies and local tourism bodies across Asia to improve the travel experience by understanding spending patterns. By using AI and data, Visa can predict travel patterns and offer relevant promotions through bank partnerships. For example, in Japan, Visa collaborates with the Osaka Tourism Bureau to prepare for events that attract millions of new travelers. The use of data helps Visa offer contextual promotions, such as discounts at specific restaurants or hotels, to enhance the travel experience for tourists.
Japan has become a top destination for Southeast Asian travelers, with a weak yen and unique cultural experiences driving the trend. Visa’s spending data shows that travelers are increasingly spending in Japan to experience its food, geography, and cultural attractions, particularly during the Sakura season. Beach destinations and cities with unique cultural offerings are leading Asia’s travel boom, with destinations like Bali, Tokyo, Singapore, and Bangkok being popular among travelers who seek immersive experiences and longer trips.
While the global travel sector has surged to 150% of pre-pandemic levels, the Asia Pacific region is at 130%, with China still playing catch-up. Chinese travelers are showing a preference for experiential and immersive travel, with Japan being a favored destination for its natural landscapes, cuisine, and cultural experiences. France remains the most popular destination outside Asia Pacific for Chinese travelers, but domestic travel also holds strong appeal due to friction in some international corridors. Chinese travelers are using cards extensively for pre-trip related spends on items like transport and accommodation.
Co-branded credit cards are evolving to offer rewards beyond airline purchases, creating a larger loyalty ecosystem for travelers. Visa, along with banking and airline partners, is working on building a holistic travel experience that goes beyond just flights to include accommodation, dining, and shopping. The focus is on creating deeper engagement and brand loyalty through partnerships with hotel chains and other travel-related services. Hotel co-branded cards are also emerging in some markets, creating an ecosystem that leverages a network of partners to enhance the overall travel experience for consumers. Visa is focused on offering a comprehensive range of rewards and perks through these co-branded credit cards to build long-lasting loyalty among travelers.
