The global travel sector in 2024 is thriving, driven by robust consumer spending and increased passenger traffic, with key trends highlighting the prominence of APAC destinations and a shift towards meaningful travel experiences. Japan, Thailand, and the Chinese Mainland are notable highlights, with extended trip durations and a focus on experiences over material goods shaping the future of travel.
16 May 2024 – The global travel sector is breaking new boundaries in 2024, with consumer spending on tourism remaining robust and passenger traffic soaring, according to the latest report from the Mastercard Economics Institute (MEI). Released today, the MEI’s fifth annual report, “Travel Trends 2024: Breaking Boundaries,” offers comprehensive insights into the evolving landscape of the travel industry across 74 markets, including 13 in the Asia-Pacific region (APAC).
Despite fluctuating exchange rates and varying levels of affordability, the travel industry is booming, with nine out of the last ten record-setting spending days in the global cruise and airline industries occurring this year. The MEI anticipates this momentum will continue as consumers worldwide prioritize meaningful experiences and allocate more of their budgets to travel.
The report draws on a unique analysis of aggregated and anonymized Mastercard transaction data, including Mastercard SpendingPulse™ and third-party data sources, providing a deep dive into key tourism trends for 2024 and beyond. Several notable themes have emerged in the Asia-Pacific region:
APAC destinations are trending significantly, comprising half of the top ten hot spots showing the greatest momentum among travelers. This ranking is based on the change in share of tourism transactions over the past 12 months ending March 2024.
- Japan has emerged as the number one trending destination worldwide, growing 0.9% compared to Ireland’s 0.4%. Japan welcomed a record 3,081,600 visitors from abroad in March 2024, driven by a weak yen, which is expected to keep it a top tourism destination throughout the year.
- APAC passenger traffic is rebounding, particularly for shorter, intra-regional trips. Popular destinations for Singaporean travelers this summer include Bangkok, Kuala Lumpur, and Perth.
- Thailand’s tourism is expected to fully recover in 2024, with total visitor arrivals now only 7% below 2019 pre-pandemic levels. Inbound flight traffic from South Asia and the ASEAN region is nearly 20% above 2019 levels.
David Mann, Chief Economist for Asia Pacific at Mastercard, highlighted that consumers in the region are increasingly savvy, ensuring they get the best value and unforgettable experiences from their trips. He emphasized the importance of costs, foreign exchange rates, and spending power in travelers’ assessment of value when planning their trips, suggesting businesses targeting tourism dollars need to review and possibly adjust their strategies to maintain appeal.
Summer Holiday Hot Spots (June-August 2024)
While Japan topped the trending destinations over the past year, Munich ranks as the number one summer destination in terms of flight bookings, primarily due to the UEFA EURO 2024 football championship. Tokyo, Bali, and Bangkok are also gaining momentum as top summer destinations.
Chinese Mainland Domestic Tourism Rebounds
The travel dynamic in the Chinese Mainland has shifted, with more tourists prioritizing domestic trips over international ones. Domestic air passenger traffic has normalized and exceeded 2019 levels, benefiting local businesses. International tourism traffic is recovering, currently at 80.3% of 2019 levels, with further growth expected due to visa exemptions and increased international flight capacity.
Increasing Indian Travel
In 2024, more Indians are traveling internationally than ever before, driven by a burgeoning middle class, additional route capacity, and a strong desire to travel. In the first three months of 2024, 97 million passengers traveled through Indian airports. Domestic passenger traffic is up 21% compared to 2019, and international passenger traffic is up 4%. Indian travelers have significantly increased visits to Japan, Vietnam, and the United States.
Extended Leisure Stays
Tourists in the APAC region are extending their trips, staying an average of 7.4 days, motivated by affordable destinations, warm weather, and favorable exchange rates. This is up from the 2019 average of 6.1 days per trip. Longer stays generally translate to more spending per trip, benefiting local economies.
Experiences and Nightlife Prioritized
Consumers globally continue to prioritize experiences over material goods, with spending on experiences and nightlife accounting for 12% of tourism sales, the highest point in at least five years. Australian tourists are the highest spenders globally in this category, while tourists from the Chinese Mainland are increasingly seeking out experiences.
Casual Fashion and Fine Dining Trends
Tourists today prefer casual fashion and laid-back vibes, except in spots where luxury retail and fine dining offer exceptional value. Luxury fashion sales have surged in Japan and Hong Kong SAR, while Australia, India, and Thailand enjoy burgeoning fine dining scenes.
David Mann emphasized the importance of translating macroeconomic forces and data insights into actionable strategies for businesses and policymakers to navigate the evolving tourism landscape.
