The travel industry in 2024 is breaking boundaries. Consumer travel spending is robust this year and passenger numbers are growing significantly, according to the latest global report from the Mastercard Economics Institute. Travel Trends 2024 (Travel trends 2024) provides in-depth information on the evolving travel industry across many markets.
Despite fluctuating exchange rates and varying levels of affordability, the desire to travel remains as strong as ever. In 2024, the travel sector is thriving, with nine of the last ten spending records in the global cruise and airline industry occurring this year.
« The African travel sector is recovering well, complemented by an appetite to discover destinations that offer nature, culture and authentic experiences. It’s great to see travellers extending their stays and increasing their use of digital payments, which is very positive for the tourism industry as a whole, as well as local governments building diversified economies. “, said Natalia Lechmanova, Chief Economist for EEMEA at the Mastercard Economics Institute.
Additionally, increasing digitalization allows tourists visiting sub-Saharan Africa to benefit from more amenities. Rapid growth in the adoption of digital payments has also resulted in less reliance on cash in the region, leading to changes in spending habits in the tourism sector. The percentage of tourism cash volumes (measured by ATM withdrawals as a proportion of card spending) used by tourists while visiting sub-Saharan Africa has fallen by 2024, according to estimates from the Mastercard Economics Institute. , at the lowest point ever recorded – around 10 percentage points lower than in 2019. While nationally, most digital payments in the region are made through mobile money, travelers are relying more than ever on their cards to make payments in the region.
Drawing on unique analysis of aggregated and anonymized transaction data, including Mastercard SpendingPulse, and third-party data sources, the report takes a deep dive into key global travel trends for the year and beyond, including:
Travel record
International tourist arrivals in Africa surpassed pre-pandemic levels for the first time, in the first quarter of 2024. In the first quarter of 2024, South Africa welcomed 2.4 million visitors from the rest of the world, an increase of 15.4% compared to the same period in 2023. Mauritius recorded a 16% increase over the same period. In 2023, tourist arrivals in Tanzania increased by 24.3% to a record 1,808,205.
Longer leisure time
Travelers to South Africa are extending their stay by almost two days (7.8 to 10.6 days) compared to the period before the pandemic. The global average is one extra day, a trend driven by warmer climates and more affordable destinations. The Mastercard Economics Institute clearly found an inverse relationship between destination price and the number of additional days tourists spend in those destinations. In other words, the cheaper the destination, the longer the stay.
The experience economy in motion
Consumers prioritize meaningful experiences over material goods, even when traveling. Spending on experiences now represents 12% of tourism sales, according to SpendingPulse Destinations which measures in-store and online retail sales across all forms of payment – the highest figure in at least five years, as of March 2024. Memorable events drive travel trends, from concerts (like Taylor Swift’s) to sporting events (like the Cricket World Cup).
Most popular destinations
Japan (#1), Ireland (#2) and the United Arab Emirates (#9) are among the most popular destinations in the past 12 months. For the next three months (June-August 2024), Munich is the most popular destination due to the European Championship. From South Africa, the top five destinations to escape the winter are Dubai, Mauritius, Istanbul, Frankfurt and Nairobi. Cape Town is among the top three destinations from Saudi Arabia.
Comprehensive support for travelers and the tourism sector
Mastercard is dedicated to helping the global travel industry welcome travelers with a range of services from market analytics and high-frequency data that help understand changing consumer trends, to customer engagement strategies that personalize the travel experience and foster brand loyalty. And cardholders can enjoy their travel and everyday purchases with peace of mind through the benefits and conveniences they provide.
