The latest global report from the Mastercard Economics Institute
confirms what everyone suspected: Travel is booming. It’s “breaking new
boundaries”, Mastercard says.
The report, Travel Trends 2024, provides insights into the evolving
landscape of the travel industry across 74 markets, finding that despite
fluctuating exchange rates and varying levels of affordability, “the
desire to travel remains stronger than ever”.
Most crucially, Mastercard found that nine out of the last 10
record-setting spending days in the global cruise and airline industry
occurred this year.
Further, travellers are extending their trips by an extra day compared to pre-pandemic.
Analysis of aggregated and anonymised transaction data, including
Mastercard SpendingPulse™, together with third-party data sources,
allowed the report to track key travel trends globally for the year and
beyond.
In global trends, Japan welcomed 3,081,600 visitors from overseas in
March 2024 – the highest level ever – even before the peak travel season
began.
Munich ranked as the No.1 2024 summer destination – in terms of share
gain in flight bookings – due to its hosting of the UEFA Euro 2024
football championship in June.
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 six degrees Celsius of
temperature, the estimated increase in length of stay is approximately
one day.
Experience economy on the go. Consumers have
prioritised 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. For many travellers, the widening price
difference between cruises and hotels has made cruises a more
budget-friendly option for a getaway.
“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, travellers are prioritising experiences over goods while abroad.”