Consumer spending on travel remains strong, driven by significant growth in passenger numbers, according to the latest global report from the Mastercard Economic Institute.
Released on Tuesday, “Travel trends for 2024” provides comprehensive insight into the evolving landscape of the travel industry across 74 markets.
The top 10 Caribbean/Latin American destinations for American travelers from June to August include four destinations in the region. Oranjestad, Aruba (2n.d.), Punta Cana, Dominican Republic (5th), San Juan, Puerto Rico (6th), Santiago, Dominican Republic (10th).
Globally, Oranjestad on the island of Aruba ranks among the top 10 trending destinations during this period. For Latin Americans, Punta Cana is her eighth most popular destination this summer.
Across the Caribbean, while travel is recovering, it is becoming clear that countries with relatively affordable hotel options are faring much better, ultimately benefiting their economies.
Internationally, the amount of time spent on vacation has increased markedly, increasing from 4.5 days in 2020 to 5.5 days in 2024. For example, among Caribbean countries, the amount of time spent in Barbados increased from an average of 7.8 days to 8.5 days, respectively. This increase is due to important factors such as affordability and climate.
The report also highlights key global travel trends for this year and beyond, including:
- Travel record: 15.9 million Americans will travel abroad in the first quarter of 2024, a record high.
- Longer leisure: Thanks to affordable destinations and warmer weather, tourists are extending their vacation by an average day.
- Experience economy on the go: Consumers are now prioritizing experiences over goods when traveling, accounting for 12% of tourism sales, the highest in at least the past five years.
- Full speed ahead: Cruise travel has exceeded pre-pandemic demand levels, driven by its affordability compared to hotels. The Bahamas received an additional 2.9 million passengers arriving by sea compared to 2019.
- Top 10 trending destinations: Japan leads the way in tourism activity, with Munich leading the way in summer tourism. Albania ranks third in terms of low costs among European countries.
“The travel sector's resilience, adaptability and strong consumer demand will mean a thriving tourism industry in 2024,” said Michelle Meyer, president and chief economist at the Mastercard Economic Institute.
Just like at home, travelers abroad prioritize experiences over goods. ”
“But today's travelers are discerning and choosing destinations that offer both value and authenticity. They are stretching their funds to extend their stay and immerse themselves in the wonders of each location. “I have enough knowledge to immerse myself in that,'' Meyer added.
Mastercard said it is dedicated to helping the global tourism industry welcome travelers through a variety of services, including market analysis and high-frequency data insights. These factors help understand the shift in consumer trends towards customer engagement strategies that personalize the travel experience and foster brand loyalty.
Cardholders can enjoy their travel experiences and everyday purchases with peace of mind with comprehensive travel benefits and convenience.
View the full 2024 Travel Trends Report here. Additional reports and insights from the Mastercard Economic Research Institute can be found here. here.
