Soaring passenger traffic, longer stays: Mastercard Economics Institute on travel in 2024
14 May 2024 - 11:04PM
Business Wire
The travel sector in 2024 is breaking boundaries. Through March
2024, consumer spending on travel is robust with significant
increases in passenger traffic, according to the latest global
report from the Mastercard Economics Institute. Released today,
“Travel Trends 2024” provides comprehensive insights into the
evolving landscape of the travel industry across 74 markets.
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Top 10 Trending Summer Destinations 2024.
(Graphic: Business Wire)
Despite fluctuating exchange rates and varying levels of
affordability, the desire to travel remains stronger than ever. In
2024 the travel sector is flourishing, with nine out of the last 10
record-setting spending days in the global cruise and airline
industry occurring this year1. Further, travelers are also
extending their trips by an extra day compared to pre-pandemic.
Drawing on a unique analysis of aggregated and anonymized
transaction data, including Mastercard SpendingPulse™, and
third-party data sources, the report takes a deep dive into key
travel trends globally for the year and beyond, including:
Record traveling. An all-time high of 15.9 million
Americans traveled internationally in Q1 2024, while Japan welcomed
over 3 million passenger arrivals in March 20242 alone. The surge
in travel reflects greater activity, fueled by a strong labor
market and a stronger desire to travel.
Leisure for longer. Tourists worldwide have spent an
extra day on vacation on average – those from Europe and the Middle
East and Africa roughly two – with the trend driven by affordable
destinations and warmer climates. For each extra 6 degrees Celsius
of temperature, the estimated increase in length of stay is
approximately 1 day.
Experience economy on the go. Consumers have prioritized
meaningful experiences over material goods, even when traveling.
Spending on experiences now totals 12% of tourism sales, according
to SpendingPulse Destinations which measures in-store and online
retail sales across all forms of payment - the highest point in at
least five years as of March 2024. Ahead of the pack, Australians
tend to spend one of every five dollars on experiences and
nightlife compared to the global average, which is closer to one in
every 10.
Cruising full steam ahead. Cruises are making a
remarkable comeback with the count of global cruise passenger
transactions roughly 16% above 2019 levels in Q1. Booming cruise
demand is also seen at key ports. Over the last 12 months, The
Bahamas has welcomed an additional 2.9 million passengers arriving
by sea versus 2019 levels. For many travelers, the widening price
difference between cruises and hotels has made cruises a more
budget-friendly option for a getaway.
Top 10 trending destinations — and dupes. While Japan has
emerged as the global frontrunner for top destination in the last
12 months3, Munich ranks as the top trending destination for this
summer (June-August 2024)4. Notably, Albania ranks third in the
list of top trending destinations this summer according to the
Mastercard Economics Institute, driven largely by savvy travelers
seeking authentic Euro-vibes à la neighboring Italy and Croatia,
but for less.
“The resilience and adaptability of the travel sector paired
with persistent consumer demand has translated to a strong tourism
rebound," said Michelle Meyer, chief economist and head of the
Mastercard Economics Institute. “Just like at home, travelers are
prioritizing experiences over goods while abroad. Yet, today's
travelers are discerning, choosing destinations that offer both
value and authenticity. They are savvy enough to stretch their
funds and extend their stays, immersing themselves fully in the
experiences and wonders of each locale.”
Comprehensive support to travelers and tourism sector
Mastercard is dedicated to helping the global tourism sector
welcome travelers through a range of services, from market analysis
and high-frequency data insights that help make sense of changing
consumer trends to customer engagement strategies that personalize
the travel experience and drive brand loyalty. And with
comprehensive travel benefits and convenience, cardholders can
enjoy their travel experiences and everyday purchases with peace of
mind.
You can view the full “Travel Trends 2024: Breaking Boundaries”
report here. Other reports and insights from the Mastercard
Economics Institute can be found here.
About Mastercard Economics
Institute
Mastercard Economics Institute launched in 2020 to analyze
macroeconomic trends through the lens of the consumer. A team of
economists, analysts and data scientists draws on Mastercard
insights - including Mastercard SpendingPulse™ - and third-party
data to deliver regular reporting on economic issues for key
customers, partners and policymakers.
About Mastercard (NYSE: MA)
www.mastercard.com
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. With connections across more than
210 countries and territories, we are building a sustainable world
that unlocks priceless possibilities for all.
1 Mastercard Economics Institute analysis of aggregated &
anonymized switched consumer volumes (nominal US dollars unadjusted
for FX) through March 2024. 2 Mastercard Economics Institute
analysis, US ITA, Japan National Tourism Organization. 3 Mastercard
Economics Institute analysis of aggregated & anonymized
Mastercard leisure travel related switched transactions. 4
Mastercard Economics Institute analysis of aggregated &
anonymized Mastercard leisure flight booking data provided by third
party partners.
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Media Alyssa O’Brien,
Mastercard alyssa.o’brien@mastercard.com
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