Showing posts with label MasterCard. Show all posts
Showing posts with label MasterCard. Show all posts

Saturday, 30 May 2026

Mastercard and CrescentRating reports suggest 245 M Muslim travellers by 2030

Mastercard, in collaboration with CrescentRating, has released two new reports: Halal Travel Trends 2026 and Muslim Women in Travel 2026, examining how Muslim travel is evolving amid rising demand for more inclusive, trusted and purpose-led experiences.

Halal Travel Trends 2026 revealed that international Muslim visitor arrivals were estimated at 186 million in 2025 and projected to reach 245 million by 2030. Meanwhile, Muslim Women in Travel 2026 found that Muslim women travellers accounted for 90 million international arrivals in 2025, representing 48% of global Muslim visitor arrivals, up from 63 million and 45% in 2019.

Additionally, baseline services for Muslim-friendly tourism – halal food and prayer spaces – have stepped up in recent years, identifying experiences such as safety, digital confidence, and faith-aligned assurance as part of the new norm, the organisations said.

At the centre of both reports is CrescentRating’s RIDA framework (responsible, immersive, digital and assured) which provides a practical roadmap for destinations, tourism boards and businesses to better serve Muslim travellers.

Asia remains central to the global Muslim travel landscape. Halal Travel Trends 2026 found that the region drew nearly 120 million Muslim visitors in 2024, representing 65% of the world’s 176 million global Muslim visitors. The report attributes Asia’s strength to connectivity, cultural depth, established halal infrastructure, and proximity between major Muslim source and destination markets.

Amid global volatility, travel demand remains steady, with more travellers favouring closer destinations. Intra-ASEAN travel is picking up, offering opportunities for regional players to better meet evolving preferences and the region is particularly well positioned to capture this demand. Malaysia, Indonesia, Singapore and Brunei feature among the preferred destinations for Muslim women travellers, while Southeast Asia accounts for 5.8 million Muslim women travellers as a source region.

Beyond Muslim-majority destinations, the reports also point to growing opportunities for destinations that can make Muslim-friendly readiness more visible and reliable — helping destinations convert interest into bookings while strengthening traveller confidence.

Muslim Women in Travel 2026 spotlights one of the most influential segments within the broader Muslim travel market. Muslim women are increasingly shaping where, how and why trips are planned — whether for family holidays, solo travel, religious journeys, business trips or women-led group experiences.

The report finds that safety and trust are key priorities. General safety and comfort are the most important destination factors for 60% of Muslim women travellers, followed by Muslim-friendliness at 30%. Travellers want to feel confident accessing halal food, finding prayer spaces, dressing modestly, moving through destinations safely and practicing their faith without discrimination or judgement.

Digital discovery is also playing a defining role. The report finds that 68% of respondents said social media influenced their travel decisions, with Instagram as the most used platform, followed by YouTube and TikTok. AI tools are also emerging as a new layer of travel assurance, helping travellers research destinations, compare options, plan itineraries, identify halal dining, locate prayer spaces and assess safety considerations.

“Muslim travel is entering a more sophisticated phase, where confidence, inclusion and purpose are becoming as important as access and convenience,” said Aisha Islam, Senior VP, Customer Solutions Center, Southeast Asia at Mastercard.

“Through the RIDA framework, destinations and businesses have a practical way to think about the full traveller journey from trusted digital information and secure payments to meaningful experiences that respect faith, culture, safety and personal values.”

Both reports point to a clear industry opportunity: Destinations that make Muslim-friendly services more visible, verifiable and consistent will be better positioned to convert interest into visits and build long-term loyalty.

The RIDA framework provides a practical way for destinations to respond:

Responsible: Support community-led tourism, environmental stewardship and regenerative travel practices.

Immersive: Create deeper cultural, heritage and local experiences that go beyond sightseeing.

Digital: Use technology, AI and secure digital payments to reduce friction and increase confidence.

Assured: Build trust through verified halal services, safety standards, inclusive infrastructure and consistent quality across touchpoints.

“For destinations, the opportunity is to move from availability to assurance,” said Raudha Zaini, Director of Operations, CrescentRating.

“Muslim travellers are looking for experiences that are meaningful, inclusive and easy to trust. The destinations that clearly communicate their readiness and deliver consistently across the journey will be best positioned to earn long-term loyalty.”

Mastercard and CrescentRating said the reports highlight the need for a more integrated approach to tourism development. By embedding responsible practices, authentic experiences, digital confidence and trusted faith-aligned services into destination planning, the travel industry can unlock stronger participation, deeper loyalty and more resilient growth.

Monday, 3 August 2020

Mastercard, CrescentRating analyse travel readiness in ASEAN ahead of COVID recovery

Mastercard and CrescentRating have released their joint report on travel readiness, The Travel Readiness Report:COVID-19 in ASEAN 2020.

The report aims to better aid destinations and travel stakeholders prepare for future travel in all possible scenarios. According to Mastercard and CrescentRating, the frameworks and concepts in the report can drive strategic solutions to resuscitate travel and can also be applied to destinations outside of ASEAN.

Source: The Travel Readiness Report:COVID-19 in ASEAN 2020. Cover for the report.
Source: The Travel Readiness Report:COVID-19 in ASEAN 2020. Cover for the report.

"Over the last few years, April/May has been the time that we have released the Mastercard-CrescentRating Global Muslim Travel Index (GMTI). However, this year, given the current crisis, we have prioritised the release of this new Travel Readiness Report to help all stakeholders better frame the impact of COVID-19 on our industry and help build scenarios for future travel. We still do plan to release GMTI 2020 in the 4th quarter of this year," explained Fazal Bahardeen, Founder & CEO, CrescentRating.com and HalalTrip.com, in the foreword for the report.

"Our previous reports have focused on how the general industry can better cater to the Muslim travel market, and we continue to focus on this area closely. However COVID-19 has impacted everyone and created new gaps. These demanded more robust frameworks and new ways of thinking to manage the complexity and drive strategic solutions to help resuscitate travel," he added.

"According to recently-conducted Mastercard Impact Studies, confidence in travel has started rising across the world, especially in Southeast Asia. While most people have had to cancel or delay trips, these studies have shown that more than half the people across Asia Pacific are going to plan for future trips when travel restrictions have lifted. While countries have started slowly easing restrictions on movement and travel, this comes with heightened safety measures and protocols in place that were never there before. While the travel sector is gearing up for these measures, they need to ensure that they are prepared to meet the new needs of customers," observed Safdar Khan, Division President Southeast Asia Emerging Markets, Mastercard, in the same foreword.

"As we all prepare for a new normal, there is a need for reliable data insights that can help sectors plan and future-proof their businesses. 2020 is our sixth year partnering with CrescentRating to develop in-depth reports that serve as a beacon for businesses and governments who are looking to bolster their travel offerings and bring memorable experiences to their end-customers. We trust this report can help the tourism industry craft strategies that will make them more digital, resilient, agile, and flexible to changing consumer needs, and successfully navigate the difficult—but not insurmountable—challenges of the future," he said.

The two companies note that tourism has been a key economic and GDP contributor in ASEAN, and a source of revenue for many small businesses, but this has changed since the COVID-19 pandemic hit. They believe that even after restrictions on movement and travel are lifted, heightened safety measures and protocols will be implemented by all nations.

The need to better understand the trends and how the tourism industry can prepare for the new world and the inevitable change in consumer needs was the impetus for the research.

Based on expert analysis and data from leading organisations, The Travel Readiness Report by Mastercard and CrescentRating offers players and stakeholders in the travel and tourism sector in-depth insights into various areas - from how COVID-19 has affected household finances in the region, to mapping out different recovery trajectories, to providing concrete courses of action for businesses in the tourism industry to move forward with greater confidence.

The report also provides insights for destinations to plan their COVID-19 recovery roadmap along four key phases: Containment, Recovery, Normalization and Growth.

In a segment on Muslim travellers in ASEAN, the report profiled three Muslim traveller categories and how they have been impacted by COVID-19: Muslim Millennials, Muslim Gen Zers, and Muslim women travellers.

Defined as those born between 1981 to 1994, Muslim Millennial travellers (MMTs) are are dealing with career progression and starting a family while their employees adjust work arrangements and cut salaries in order to retain jobs. "Travel is no longer accessible, and the availability of authentic experiences is questionable in the near future. Thus, MMTs are forced to prioritise economic stability over trip planning," the report said.


Defined as those born between 1995 to 2009, Gen Zers are also affected badly when it comes to travel, the report added.

Women travellers are hard-hit when the ailing travel and tourism industry is woman-dominated. The COVID-19 fallout has meant that more women are either being displaced or are facing wage-cuts during the pandemic, and their wages are usually lower than men's in the first place.

"Additionally, gender roles and expectations render women to be responsible of household affairs. Thus, the potential of Muslim women travellers to explore and energise communities is severed during the pandemic," the report said.
 
The report further noted that such travellers represent 21% of the domestic tourist and 43% of the intra-ASEAN travellers, due to the large Muslim travel outbound markets from Indonesia and Malaysia travelling to neighbouring destinations. Outbound travellers leave their home country to travel to other countries.

"With its strength as one of most Muslim travel-friendly regions in the world, ASEAN could benefit from this segment of travellers as intra-regional travel opens up," the report said.

Report authors further noted that Malaysia and Indonesia are ranked a joint first in last year's Mastercard-Crescentrating Global Muslim Travel Index (GMTI) 2019. ASEAN countries Brunei and Singapore along with Malaysia and Indonesia occupy four of the top 10 ranked destinations in the GMTI.

"This strength allows ASEAN destinations to position strongly to attract the Muslim market as travel opens," the report concluded.
Details:

Read the report (PDF).

Hashtags: #AseanTravel, #TravelReadinessASEAN

Sunday, 20 October 2019

Muslim women travellers spent over US$80 billion last year

Twenty-eight percent of trips taken by Muslim women last year were taken solo, indicative of a growing younger demographic willing to experience the world alone, according to a new report released by Mastercard and CrescentRating.

An estimated 63 million Muslim women travellers spent over US$80 billion on their journeys last year. This number is expected to grow.

“Despite the increasingly ubiquitous Muslim women travel market, to date little research has been done to better understand this fast-emerging segment and their specific challenges. This study provides the industry with a clear lens to understand their intrinsic and extrinsic travel motivations. This includes their unique travel behaviour driven by triple 'E's – explore, energise and empathise.

"Together with interviews with multiple Muslim women travellers of diverse backgrounds and profiles, we trust the report will enable industry stakeholders to better cater to this segment,” said Raudha Zaini, Head of Marketing of CrescentRating & HalalTrip.

Two-thirds of Muslim women travellers are 40 years of age or younger, and over half of them use some form of social media to scope out accommodation, logistics and dining. Most of the segment set off on trips two to three times per year.

Leisure takes precedence (90%), followed by religious travel (21%) and business (11%). The study confirms that they exert considerable influence in trip planning regardless of who they travel with. That said, seven in 10 (71%) travel with their families, and therefore prefer family-friendly destinations.

Female travellers constitute one the fastest-growing segments within the global travel market and their main needs, such as safety and security, are mirrored within the Muslim women demographic. However, Muslim women travellers also look to integrate religious amenities into their trips with 94% of survey respondents reporting halal dining as a travel priority.

Accessible religious facilities with female-only prayer rooms (86%) and single-gender spas and beauty salons (79%) also factor highly into their itineraries. Social justice, an important part of their faith, also influences their journeys, with 73% seeking ecofriendly travel options abroad.

“Muslim women travellers are ready to see the world. This young and driven demographic is ready to engage travel industry providers who welcome them and curate experiences that keep their values and community in the forefront. Mastercard and CrescentRating’s newest report aims to inform industry stakeholders as they tailor their products and services to this up-and-coming demographic,” said Aisha Islam, VP, Market Product Management, Mastercard.

Details:

Download the report

Wednesday, 10 April 2019

Indonesia and Malaysia lead in Muslim travel market

- Indonesia shares the top spot with Malaysia on the Mastercard-CrescentRating Global Muslim Travel Index (GMTI) 2019.

- Singapore retained its premier position as the top Muslim-friendly non-OIC destination for Muslim travellers.

- In 2018, there were an estimated 140 million Muslim visitors worldwide - up from 131 million in 2017 - representing 10% of the global travel industry.

For the first time, Indonesia shares the top spot with Malaysia in the Mastercard-CrescentRating Global Muslim Travel Index (GMTI) 2019. The report includes 130 destinations globally, within and outside the Organisation of Islamic Cooperation (OIC)*. Singapore continues to be the top Muslim-friendly travel destination among non-OIC destinations, followed by Thailand, the UK, Japan and Taiwan.

The GMTI tracks the health and growth of Muslim-friendly travel destinations in four strategic areas – access, communications, environment and services. The index is now the leading study providing insights and data to help countries, the travel industry and investors gauge the development of travel sectors while benchmarking a country’s progress in catering to Muslim travellers.

The Muslim travel market is one of the fastest growing tourism sectors in the world, but despite its huge potential, remains relatively untapped. By 2026, the halal travel sector’s contribution to the global economy is expected to jump 35% to US$300 billion, up from US$220 billion in 2020. By that time, Muslim visitors globally are forecast to grow to 230 million visitors, to represent more than 10% of tourists worldwide.

Indonesia has reached the top spot on the Index through the sustained efforts of the Indonesian Ministry of Tourism. Indonesia is investing in its tourism and travel industry, and developing Muslim-tourist friendly infrastructure. Climbing up from No. 2, Indonesia now shares the top spot with Malaysia, with a score of 78 on the Index.

Other OIC countries including Turkey, KSA, Morocco, Oman and Brunei continue to be popular with Muslim tourists. These destinations can continue to reap the benefits of their inherently Muslim-friendly environment by leveraging new technologies to strategically build services that better engage young, Millennial Muslim travellers.

Among non-OIC countries, Singapore, Thailand, the UK, Japan and Taiwan have retained their positions in the top five and have further improved their scores on the Index. South Korea and the Philippines have entered the top 10 non-OIC destinations list for the first time, displacing Germany and Australia.

In an effort to attract more Muslim tourists, non-OIC destinations have been much more active, as compared with some OIC destinations, in developing their capacity and capability to attract Muslim travellers. For example, destinations such as Spain, South Korea and the Philippines have developed useful resources and travel guides that cater to Muslim preferences by listing best halal restaurants and nearby prayer facilities.

The Halal travel market has undergone significant changes in recent years. At the start of this decade, businesses, hotels and tour operators provided functional services that catered to the needs of Muslim tourists – Halal Travel 1.0. These offerings included halal food options, wudhu'-friendly** washrooms, and prayer facilities.

Driven by the rapid pace of digital and technological transformation, a new phase of Muslim travel is emerging, one that is defined by experience and connectivity – what CrescentRating calls Halal Travel 2.0. Halal Travel 2.0 leverages technologies such as artificial intelligence, augmented reality and virtual reality, to better engage Muslim travellers in the digital age.

This year, CrescentRating has defined five categories that can help further develop the halal travel sector. The Halal Travel Development Goals provide an overarching framework that serves as a blueprint for the travel industry that guides their growth strategies in the halal travel sector.

The five Halal Travel Development Goals are:

1. Integration, diversity and faith: Enable Muslims to be active citizens of the global community while remaining spiritual.

2. Heritage, culture and connection: Connect Muslim travellers to one another, to the local community, and to the heritage and history of their chosen destination.

3. Education, insights and capabilities: Enhance understanding among communities. Increase academic and industry knowledge that can improve the capabilities of stakeholders.

4. Industry, innovation and trade: Create new opportunities to increase commerce through tourism and drive growth across multiple sectors.

5. Well-being and sustainable tourism: Recognizse the responsibilities of stakeholders in the travel sector and the social impact on travellers, the wider community and the environment.

“As the Muslim travel market continues to grow and evolve, we believe, this report along with the Halal Travel Frontier 2019 report released earlier this year, sets the stage for the next phase of development in this unique travel segment - Halal Travel 2.0. The report also presents the five Halal Travel Development Goals as well as the updated Muslim Faith Based Services Needs to help all stakeholders develop clear plans to grow the market,” said Fazal Bahardeen, CEO of CrescentRating & HalalTrip.

“Mastercard is committed to working with partners to expand this dynamic travel segment. As more Muslim travellers explore the globe, they will need trusted, safe, and secure digital payments solutions. Mastercard is pleased to collaborate with CrescentRating to empower all stakeholders with actionable insights, and to develop specially curated offerings that meet the religious and cultural needs of Muslim travellers,” said Safdar Khan, Division President Indonesia, Malaysia & Brunei, Mastercard.

Top 10 OIC destinations

OIC destinations Rank
GMTI 2019 rank
Destination
Score
1
1
Malaysia
78
1
1
Indonesia
78
3
3
Turkey
75
4
4
KSA
72
5
5
UAE
71
6
6
Qatar
68
7
7
Morocco
67
8
8
Bahrain
66
8
8
Oman
66
10
10
Brunei
65

Top 10 non-OIC destinations

Non-OIC destinations Rank
GMTI 2019 rank
Destination
Score
1
10
Singapore
65
2
18
Thailand
57
3
25
UK
53
3
25
Japan
53
3
25
Taiwan
53
6
29
South Africa
52
7
31
Hong Kong
51
8
34
South Korea
48
9
36
France
46
9
36
Spain
46
9
36
Philippines
46

Explore:

Read the report

Hashtag: #GMTI2019

*The Organisation of Islamic Cooperation is an international organisation founded in 1969, consisting of 57 member states. 

**Wudhu' (الوضوء) refers to a purification ritual that is carried out before prayers and which involves water.

Wednesday, 30 January 2019

Mastercard, CrescentRating chart halal travel trends for 2019

Source: Mastercard, CrescentRating. Cover for the Halal Travel report, 2019.
Source: Mastercard, CrescentRating.
The Mastercard-CrescentRating Halal Travel Frontier 2019 (HTF2019) Report has identified 17 trends that will shape the next phase of development in the fast growing halal travel sector.

The report analyses changes in the halal travel space, and provides insights on how these trends will impact and influence the Muslim traveller. It predicts how technology, the environment and social activism will bring about major changes in all aspects of the halal travel industry and make it easier for Muslim travellers to explore the world.

The 17 top trends include:

· The integration of augmented reality to give Muslim travellers crucial cultural insights, including eateries that are halal-certified.

· The proliferation of chatbots which are custom-designed to satisfy the cultural and religious needs of a Muslim traveller.

· A streamlined visa approval process for Muslims travelling to Mecca to perform umrah.

· Non-traditional destinations such as Japan and Taiwan will increasingly attract Muslim travellers.

Changes in the umrah visa process and the rise of new interactive technology will mean that traditional Hajj and umrah service providers will face disruption in their business models. Young Millennial Muslim travellers will now also be able to book their own do-it-yourself (DIY) umrah. This means that existing players will need to re-invent themselves and re-imagine the services they offer to stay relevant.

Augmented reality (AR), virtual reality (VR) and artificial intelligence (AI), coupled with the increased penetration of smartphones, will also drive new trends that will redefine the Muslim travel experience – from planning to purchasing, and sharing travel adventures.

Driven by the demand for more authentic, affordable and accessible experiences, more Millennials and Gen Z travellers will book “instant noodle trips” - affordable, impromptu short trips.

In addition, heightened awareness on social causes and the rising authority of female influencers when planning trips, are also expected to result in changes in the way that Muslims travel.

The report also foresees non-OIC (Organisation of Islamic Cooperation) destinations, such as Japan and Taiwan, will dramatically change the Muslim-friendly narrative. Competition and dynamism are expected lead to innovations and developments that will benefit both destinations as well as Muslim travellers.

Finally, the report foresees the consolidation of Muslim travel service providers that will potentially result in the emergence of stronger Muslim lifestyle and travel brands.

“Being at the forefront of the Muslim travel market during the last 10 years, CrescentRating is in a unique position with access to extensive data and insights to have a holistic view of the market. We have also been able to augment these insights by the emerging Muslim traveller behaviour patterns we see on our HalalTrip website and mobile app, as well as the consumer purchasing behaviour trends observed by Mastercard.

"This has enabled us to identify key trends so that all stakeholders can prepare and benefit from the changes about to happen. We hope this motivates all players to embrace and further benefit from the growth.” said Fazal Bahardeen, CEO of CrescentRating and HalalTrip.

“Mastercard has been working with CrescentRating to create invaluable research insights to enhance the payments landscape, encourage cross-border commerce, and set new benchmarks for the expansion of the halal travel and tourism industry. The Halal Travel Frontier 2019 Report gives businesses, governments and other stakeholders in the travel sector an overview of the trends sweeping the fast-growing halal travel industry and how they can maximise opportunities in this fast growing travel sector,” said Safdar Khan, Division President, Indonesia, Malaysia and Brunei, Mastercard.

The global Muslim traveller expenditure is projected to reach US$220 billion in 2020 according to the Mastercard-CrescentRating Global Muslim Travel Index (GMTI) 2018. It is expected to grow a further US$80 billion to hit US$300 billion by 2026. In 2017, there were an estimated 131 million Muslim visitor arrivals globally - up from 121 million in 2016 - and this is forecast to grow to 156 million visitors by 2020, representing 10% of the global travel segment.

The top 17 trends to watch in 2019
 1
Heightened awareness on social causes while exploring destinations

10
Urge for “instant noodle trips”
 2
AI will further empower Muslim travellers

11
Hotel sector will stop hitting halal snooze
 3
Halal assurance will become smarter with AR

12
Rising female voice in trip planning
4
AR will reconnect Muslim travellers with lost Islamic heritage
13
Destinations to encounter multiple Muslim traveller identities with common shared values

5
Consolidation of Muslim travel space will result in emergence of stronger Muslim lifestyle / travel brands

14
Decline in Muslim visitors to destinations perceived as unwelcoming
6
Disruption of the traditional umrah market with DIY umrahs

15
Human resource development to take centre stage
7
Deeper training immersion with VR umrahs

16
Rise in demand for halal advisory
8
Convergence of travel behaviour around mobile

17
Preventing halal big data chaos
9
Growing non-OIC wave in the Muslim travel ocean




Explore:
 
Read the Halal Travel Frontier 2019 report

Read the Suroor Asia blog posts about the digital element in halal travel and on the Japan Muslim Travel Index 2017

Hashtag: #HTF2019 

Thursday, 13 December 2018

First-ever Indonesia Muslim Travel Index names Lombok as key destination for halal tourism

- Indonesia launches travel index* to position as itself a leader in the US$220 billion Muslim travel marke

- The Mastercard-CrescentRating Indonesia Muslim Travel Index (IMTI) 2018 benchmarks 10 Indonesian provinces on their readiness to welcome Muslim tourists

- IMTI reveals that Lombok, Aceh, and Jakarta as key destinations for halal tourism

Source: Crescentrating website. IMTI   2018 report cover.
Source: Crescentrating website. IMTI 
2018 report cover.

The Mastercard-CrescentRating Indonesia Muslim Travel Index (IMTI) 2018 has been launched in Jakarta by Pak Arief Yahya, Minister of Tourism, Indonesia, with the aim of-fast tracking the development of its provinces to welcome Muslim tourists. The country has a target of welcoming 5 million Muslim tourists in 2019. 

The IMTI benchmarks Indonesian provinces in four strategic areas – access, communications, environment and services – and tracks the health and the growth of the travel segment across the country. The 10 provinces covered in this years’ index are Aceh, the Riau Islands, West Sumatra, Jakarta, West Java, Central Java, Yogyakarta, East Java, South Sulawesi and Lombok (West Nusa Tenggara). The IMTI is part of the Mastercard-CrescentRating Global Muslim Travel Index (GMTI) Series of reports.

The inaugural IMTI reveals that Lombok, Aceh, and Jakarta are new key destinations for halal tourism. 

In 2016, a Halal Tourism Acceleration and Development Team was set up by the Ministry of Tourism in Indonesia to address the development and promotion of halal travel in the country amidst rising competition from other countries developing their own halal tourism initiatives. Indonesia has worked to develop infrastructure and services to attract the Muslim tourist and has consistently improved its global position in the GMTI, from 6th place in 2015 to 2nd place in 2018.

Best known for its pristine beaches and home to over a thousand mosques, Lombok has been at the forefront of developing the destination for halal tourism. The regional authorities have shown strong commitment to educate the stakeholders and promote the destination as a Muslim-friendly destination.

Indonesian Tourism Minister Arief Yahya said, “IMTI is an important milestone to achieve the halal tourism target by 2019, including becoming the No. 1 halal destination and attracting 5 million foreign Muslim travelers, 25% of the overall 2019 foreign visitor target.”

Global Muslim traveller expenditure is projected to reach US$220 billion in 2020 according to GMTI 2018. It is expected to grow a further US$80 billion to hit US$300 billion by 2026. In 2017, there were an estimated 131 million Muslim visitor arrivals globally - up from 121 million in 2016 - and this is forecast to grow to 156 million visitors by 2020, representing 10% of the global travel segment.

Halal tourism is key to Indonesia’s economic growth and it is prospected to be the country’s biggest foreign exchange source in the future. The travel index highlighted recommendations for innovation and growth in the Muslim travel segment in Indonesia. Recommendations included improving connectivity and infrastructure as well as building online content and resources to attract more international tourists, while improving the country’s overall global halal destination branding.

“Given its natural beauty and cultural richness, tourism offers a huge growth opportunity for Indonesia. With its standing as the world’s most populous Muslim country, Indonesia has the core infrastructure and environment in place to cater to the needs of Muslim travelers. IMTI 2018 insights will enable the regions within Indonesia to build on their strengths to better cater to the requirements of Muslim travelers," said Fazal Bahardeen, CEO of CrescentRating & HalalTrip.

“Mastercard and CrescentRating have collaborated since 2015 to create a suite of comprehensive research material offering invaluable insights on the halal travel sector. These in turn enable governments and the tourism industry to better cater to the needs of Muslim travelers. Indonesia has done a wonderful job in enhancing the country’s tourism landscape and infrastructure. The IMTI is an innovative partnership between the public and private sector which aims to empower provinces with the information they need to continuously improve their local travel industry,” said Safdar Khan, Division President Indonesia, Malaysia and Brunei, Mastercard.

IMTI 2018 Rank
Province
Score
1
Lombok (West Nusa Tenggara)
58
2
Aceh
57
2
Jakarta
56
4
West Sumatra
55<
5
Yogyakarta
51
7
West Java
51
6
Riau Islands
50
8
East Java
48
9
Central Java
47
10
South Sulawesi
30

Details:

Read the report

Explore:

Read the Suroor Asia blog post about building a halal-friendly tourism industry in Indonesia

Hashtag: #IMTI2018

*Key metrics for IMTI 2018 include access, which comprises of infrastructure; communications, which looks at how destinations market themselves to the target audience; environment, one which is welcoming of Muslim visitors; and services. Each criterion is then weighted to make up the overall index score.

Tuesday, 23 October 2018

Millennial and Gen Z Muslim travellers are driving a US$180 billion online travel market

Source: CrescentRating website. Cover for the Mastercard-CrescentRating Digital Muslim  Travel Report 2018.
Source: CrescentRating website. Cover for the
Mastercard-CrescentRating Digital Muslim
Travel Report 2018.
The increasing reliance by Muslim Millennials and Generation (Gen) Z* on the Internet, social media and smartphones for discovering new travel destinations and then booking trips is driving a significant revenues for the travel industry.

In 2017, CrescentRating found that Muslim Millennials rely very heavily on social media and online reviews for travel; travel two to five times annually, and look for halal food and prayer tools online - behaviours condensed into the pillars accessibility, affordability and authenticity.

"This year continue the discussion and fully understand their journey not just from the Millennial point of view, but also zoom out and really understand the profiles of Millennial travellers in general," Raudha Zaini, Marketing Manager, HalalTrip and CrescentRating said.

Unveiled at the Halal-In-Travel Asia Summit, the Mastercard-CrescentRating Digital Muslim Travel Report 2018 (DMTR2018) has revealed what shapes the growth of online purchases by the next generation of Muslim travellers. The research projects that online travel expenditure by Muslim travellers will exceed US$180 billion by 2026.

The DMTR2018 is the first comprehensive report looking at the online travel patterns and attitudes of Muslim travellers across different demographic groups. It extends the research on the digital Muslim traveller population, expanding beyond the Muslim Millennial traveller (MMT) segment which was studied last year in the Muslim Millennial Travel Report 2017, and also analyses travellers along the continuum of strictly practising, "less practising" and practising travellers.

Fazal Bahardeen, CEO of CrescentRating and HalalTrip, said “The DMTR2018 reveals important online behaviour and preferences of Muslim travellers. It will equip tourism destinations, tour operators, airlines and other tourism and hospitality stakeholders with insights of online platforms and social networking services to evaluate the potential within the Muslim market.

“With the rapid proliferation of enabling online technologies and payment methods and the rise of Muslim digital natives, as a major segment within the Muslim travel market, the outlook for the digital space is very positive. Destinations need to ensure that their messages reach Muslim travellers through online channels. This report gives the industry a practical and ready segmentation criterion to empathise with different demographics. Digital is real and transcends generations.”

Key takeaways from the DMTR2018 included:

- Digital is real and transcends generations

Different generations are using digital, though they behave differently, Zaini said.

- Content is key.

"You have to focus on all segments, and not just Muslim Millennial travellers," Zaini noted. 

- A mix of online platforms are used per product or service journey

"The impact on business is that you need to be agile enough to appropriately display your content, be it desktop or mobile, and be smart enough to understand what users are looking for," she said.

Devesh Kuwadekar, VP, Market Development, Mastercard, noted that 2018 marks the fourth year of Mastercard's partnership with CrescentRating. He said, “The halal travel market continues to be one of the fastest growing travel segments globally, with Muslim visitor arrivals representing about 10% of the entire travel industry globally in 2017. Muslim travellers are spending more time online researching and comparing information before they finally choose and pay for their ideal travel experience.

"Mastercard works with likeminded partners to create tailored offerings for customers across a wide range of passion points. As consumers explore more countries and regions, Mastercard is also seeing an increase in the use of cashless and digital payments through prepaid and debit options as a safer, more convenient and reliable form of electronic payments for greater peace of mind when travelling.”

"We are collaborating with banks and others to create a safer experience across all touch points," he added.

Online travel purchases will be worth US$180 billion in 2026.
Muslim Millennials go online to plan their trips, accounting for 40% of all Muslim traveller transactions, but Gen X and Gen Z as well as Baby Boomers (listed as Others) are also digital users.
Muslim Millennials go online to plan their trips, accounting for 40% of all Muslim traveller transactions, but Gen X and Gen Z as well as Baby Boomers (listed as Others) are also digital users.

The Mastercard-CrescentRating Global Muslim Travel Index (GMTI) 2018, released in April this year, confirmed that the Muslim travel market will continue its fast-paced growth to reach US$220 billion in 2020 and US$300 billion by 2026. In 2017, there was an estimated 131 million Muslim visitor arrivals globally. CrescentRating research indicates that more than 60% of Muslim travellers were either Millennials or Gen Z.

The GMTI 2018 found that 30 Muslim outbound markets** represent 90% of the overall Muslim visitor arrivals and should be the focus of the travel industry. This study looked at the “digitally enabled” environment of these markets to understand the potential of digital transactions. These destinations have been divided into distinctive clusters based on the market size and digital access.

Cluster A
Large outbound markets with a high level of digital enablement
  • KSA
  • Malaysia
  • UAE
These are regions with large Muslim populations and high per-capita GDP, allowing a high percentage of travellers to travel internationally. The majority of the residents in these countries are digital-savvy and have the latest digital infrastructures.
Cluster B
High level of digital enablement but smaller outbound markets
OIC countries
  • Kuwait
  • Qatar
  • Lebanon
  • Tunisia
  • Azerbaijan
  • Kazakhstan
Non-OIC countries
  • UK
  • Germany
  • France
  • Singapore
  • Russia
These are countries with residents who are digital-savvy and have the latest digital landscapes but their populations are smaller in comparison to those in Cluster A.
Cluster C
Good level of digital enablement but smaller outbound markets
  • Oman
  • Albania
  • Morocco
  • China
They have good digital infrastructures but the population of Muslim travellers travelling internationally is still small.
Cluster D
Emerging growth markets with fast-growing levels of digital enablement
  • Turkey
  • Indonesia
  • Egypt
  • Iran
These are majority Muslim countries with a growing outbound travel market. Even though they may not have widespread digital infrastructures yet, businesses can look at these markets for medium-to-long term prospects.

Bahardeen noted that while the markets are diverse, the travellers share values of a common faith and identify as Muslims. That said, they come from different locations, speak multiple languages and dialects, and have differences in cultural lifestyle, plus varying degrees of halal consciousness.

"It is not a homogeneous market. You really have to get an understanding of each of those markets," he said, adding that someone from a more secular country who goes to a strict Muslim country may become stricter during a trip, and vice versa, so there cannot be hard and fast rules on hospitality. 

"We have to look at different ways of catering to them," he said.

Explore:

Read the Mastercard-CrescentRating Digital Muslim Travel Report 2018 report 

Hashtags: #halalintravel, #itbasia2018

*According to CrescentRating, baby boomers are classed as those born between 1946 and 1964; Generation or Gen Xers were born between 1965 and 1980; Millennials from 1981 to 1996, while Gen Zers were born from 1997 onwards.

**Outbound refers to people from one country going to travel overseas. Inbound refers to the opposite, people from other countries travelling to a particular country.