- 1 in 5 Singaporeans surveyed believe they will spend more on travel this year as compared to last year
- More than 40% of Singaporeans surveyed have paid FX fees charged by their bank or credit card issuer for purchases made overseas. Over 30% have been charged currency conversion fees for converting currency at banks or currency exchange services.
- Almost 30% Singaporeans surveyed consider themselves Budget / Value travellers and close to 20% said they are Experiential travellers vs only 3% who are Luxury travellers
- 7 in 10 Singaporeans surveyed still use cash for payments when they travel. 48% use credit cards, of which 44% of them rely on dynamic currency conversion which incurs an additional fee
Revolut, the global fintech with more than 45 million customers worldwide, recently conducted a survey with research company YouGov on a representative sample of 1,000+ Singaporeans aged 18-65+. The survey revealed key trends and behaviours among Singaporean travellers.
Singaporeans set to spend more on travel this year
The demand for travel in Singapore continues to see an upward trend. The number of passengers departing Changi Airport saw an increase of over 80% year-on-year in 2023. This trend is expected to continue in 2024. Revolut also observes an increasing desire to travel further and for a longer duration.
According to results from the survey Revolut commissioned with YouGov, 1 in 5 Singaporeans surveyed believe they will spend more on travel in 2024 as compared to 2023. Even so, Singaporeans do prefer to set a budget and use tools to ensure they do not go over their budget.
More than half (54%) of Singaporeans surveyed determine their travel budget by estimating costs for transportation, accommodation and activities. 47% consider the duration of the trip and daily spending allowance while 35% base the budget on available savings or disposable income. 1 in 4 Singaporeans surveyed set a fixed amount based on previous travel experiences.
Many Singaporeans are paying unnecessary FX fees when travelling
With the many exciting aspects of travelling, finances is not necessarily on the top of one’s list. It is often an afterthought or one forgotten altogether, only to resurface once a traveller is back on home soil as they try to frantically figure out how they incurred so many additional costs, which in most cases, can be completely avoided.
In terms of payment methods used overseas, 7 in 10 Singaporeans surveyed use cash. 48% use credit cards, of which 44% of them rely on dynamic currency conversion which incurs an additional fee. Of those who use credit cards, more than half (53%) are Gen X while 34% are Gen Z. 38% use debit cards, primarily made up of the younger generation, Gen Z.
Overall, more than 40% of Singaporeans surveyed have paid FX fees charged by their bank or credit card issuer for purchases made overseas. Over 30% have been charged currency conversion fees for converting currency at banks or currency exchange services.
In addition, 1 in 4 have paid dynamic currency conversion fees when they paid in their home currency vs the local currency when overseas and 1 in 4 have paid ATM withdrawal fees from non-partner banks / international ATMs.
Best deals, value & experiences more important for Singaporeans than luxury
Singaporeans tend to be deal seekers and are more focused on the value they get and experiences they receive rather than luxury while travelling. 3 out of 5 Singaporeans surveyed book their accommodation in advance to take advantage of discounts and get deals which are most value for money.
Almost 30% of Singaporeans surveyed consider themselves Budget / Value travellers and close to 20% said they are Experiential travellers vs only 3% who are Luxury travellers.
Singaporeans still heavily rely on money changers to exchange currency
While most Singaporeans use more than 1 method to exchange currency, over 70% of those surveyed prefer to do so at a money changer before travelling overseas. 25% of Singaporeans exchange currency in their destination country. Out of which, 12% utilise currency exchange kiosks or bureaus and 13% withdraw cash from ATMs.
The younger generation tends to be more mobile savvy and has a higher proportion of people using apps like Revolut for currency exchange (37% of Gen Z vs just 16% of Baby Boomers).
Revolut enables users to exchange currencies at competitive exchange rates, better than what they would get at a money changer or a bank. In addition, with Revolut, users can spend in over 150 currencies and store up to 34 currencies in their Revolut wallet. These include the most recently added Indonesian Rupiah and other popular currencies like the Philippine Peso, Thai Baht, Korean Won and Indian Rupee. Revolut users also don’t need to carry large chunks of cash as Revolut allows users to withdraw up to S$350 (Standard account) from overseas ATMs each month without incurring any fees. Users can also find ATMs nearby through the Revolut app.
Raymond Ng, Chief Executive Officer at Revolut Singapore said, “One of the biggest pitfalls when travelling abroad is being charged unnecessary FX fees. Most banks in Singapore charge up to 3.25% per transaction. These unfavourable and many a times hidden fees was the reason why Revolut was born. Being charged FX fees can be completely avoided by using a multi-currency card like Revolut. Revolut offers fee-free currency exchange on weekdays for up to S$5,000 per month for the Standard Plan. We believe in transparency and in simplifying all things money.”
Top 5 measures Singaporeans take to secure their finances during travel
Nothing ruins a trip more than losing one’s phone or credit / debit card. Thankfully, there are still measures travellers can take in advance to secure their finances when travelling. Here are the top five measures Singaporeans take:
- Enable two-factor authentication (2FA) for online banking and financial accounts (48%)
- Set up transaction alerts on their bank or credit card accounts to monitor activity (44%)
- Card freezing or locking capabilities in case of loss or theft (36%)
- Notify their bank or credit card issuer of their travel plans to avoid card blocks for suspicious activity (26%)
- Use a prepaid travel card with limited funds for added security (25%)
Singaporeans’ travel money app wishlist
Over half (52%) of Singaporeans surveyed selected
- Currency conversion at competitive rates without hidden fees
- Real-time transaction notifications to track spending and detect unauthorised activity
- Card freezing or locking capabilities in case of loss or theft
Other top-rated features include:
- Multi-currency wallets for convenient management of various currencies (38%)
- International money transfers with lower fees and faster processing times (28%)
- Virtual cards for added security when making online purchases (27%)
- Access to travel insurance or assistance services directly through the app (25%)
Revolut offers all of the above and more. Through the Revolut app, users can instantly freeze or unfreeze their card in case it is lost or stolen. Revolut’s unique single-use virtual disposable card can also be used at physical stores as well as online. Once paid, the details are deleted so they can’t be skimmed or re-used. This allows users to use their card for one-off transactions as well as protect them from online sites they are not sure of. Users can generate up to five cards a day.
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