Consumer spending on travel continues to be robust with significant increases in passenger traffic, according to the latest global report from the Mastercard Economics Institute. The “Travel Trends 2024” report provides comprehensive insights into the evolving landscape of the travel industry across 74 markets, including Canada.
The report reveals that 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 year. Further, travellers are also extending their trips by an extra day compared to pre-pandemic.
Drawing on 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 this year and beyond.
Some of the key findings for Canada include:
- Japan saw a significant spike in visitors, as Canadians chase cherry blossoms at an increasing rate, with a record breaking 57,800 Canadians travelling to Japan in March 2024. This is the highest level seen since at least 1996.
- Other destinations that are seeing an increase in demand for travel from Canada between June and August include Rome, Italy, Athens, Greece, and Edinburgh.
- Canadians are also extending the length of their trips, with stays in the 12 months preceding March higher than those in the 12 months preceding February 2020.
- Canadian tourism spending in 2023 saw significant seasonal fluctuations, evidently showing that chasing pleasant weather in the summer and winter months is in increasing priority for Canadian travellers.
Meanwhile, some global trends for the year and beyond, include:
- Top 10 trending destinations – and dupes: While Japan has emerged as the global frontrunner for top destination in the last 12 months, Munich ranks as the top trending destination for this summer (June-August 2024). Notably, Albania ranks third in the list of top trending destinations this summer according to the Mastercard Economics Institute, driven largely by savvy travellers seeking authentic Euro-vibes à la neighboring Italy and Croatia, but for less.
- Leisure for longer: Tourists worldwide have spent an extra day on vacation on average 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 one day.
- Experience economy on the go: Consumers have prioritized meaningful experiences over material goods, even when travelling. 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. 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 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 prioritizing experiences over goods while abroad. Yet, today’s travellers 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.”
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.