Meet travelers’ needs with financial products

by. Konrad Christensen

According to the U.S. Department of State, nearly 115 million American passports were in circulation in 2012. With a U.S. population of around 316 million, this means roughly one in three Americans holds a valid passport.

Travel spending statistics indicate many of these passports are being put to good use. Direct spending on leisure travel by domestic and international travelers totaled $597 billion in 2012. Direct spending on business travel by domestic and international travelers totaled $259 billion that same year.

Statistically, Americans who travel comprise an attractive demographic for financial institutions (FIs). The average age of American leisure travelers is 48, while the average age for business travelers is 46. Additionally, traveling households report higher incomes than non-traveling households. In 2012, the average American household income was $52,800. For domestic leisure travelers, the average household income was nearly $10,000 higher at $62,500, while the average household income for business travelers amounted to $87,500.

It’s clear that financial products designed to serve travelers represent a sizable opportunity for FIs. Three products in particular stand out as being ideal options to market to travelers: EMV-ready credit cards, prepaid cards and “vacation” savings accounts.

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