The travel sector in 2024 is breaking boundaries. According to the latest global report from the Mastercard Economics Institute, consumer spending on travel is robust this year, with significant increases in passenger traffic. The ‘Travel Trends 2024’ report provides comprehensive insights into the evolving landscape of the travel industry across multiple markets.
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. Travelers leaving the Middle East region are more strategic with where and when they travel and are increasingly spending closer to home within the region. Meanwhile, travelers to Africa and the Middle East are extending their trips by an extra three days compared to pre-pandemic.
Drawing on a unique analysis of aggregated and anonymized transaction data, including Mastercard SpendingPulseâ„¢, and third-party data sources, the report takes a deep dive into key travel trends globally for the year and beyond.
Read more: How to plan your next trip with an AI itinerary builder
Record traveling
Globally, international travel has surged in Q1 of 2024 overall. Similarly, in the Middle East, tourism boards have announced some historic firsts:
– The Kingdom of Saudi Arabia exceeded three million inbound visits per month for the first time in its history, and repeated that for three consecutive months (January to March 2024).Â
– Egypt recorded 27 percent year-on-year growth in visitors in 2023. Tourist arrivals in Morocco reached 3.3 million at the end of the first quarter of 2024, up 12.8 percent on the same period a year earlier.
– After setting a new visitor record in 2023, Dubai recorded an 11 percent increase in Q1-2024 tourism numbers. The surge in travel reflects greater activity, fueled by a stronger desire to travel.
Leisure for longer
Tourists in the Middle East and Africa have spent an extra three days on vacation on average, compared to the global average of one extra day. In contrast to pre-pandemic stays, visitors to the UAE are spending about a day longer, while in Morocco, they’re staying about four days longer. The Mastercard Economics Institute finds a clear inverse relationship between the price of the destination and the incremental number of days tourists spend while in those destinations. In other words, the cheaper the destination, the longer the stay. And longer stays generally translate to more spend per trip, providing an economic boost for businesses supporting local economies in the travel industry.
Experience economy on the go
Consumers have prioritized meaningful experiences over material goods, even when traveling. Spending on experiences now totals 12 percent of tourism sales, according to SpendingPulse Destinations which provides worldwide estimates of tourism at a high frequency level across all payment types – the highest point in at least five years as of March 2024. In the UAE, tourism spending on casual dining has been roughly 21 percent higher than the same time last year. Memorable events are driving travel trends, whether it is for concerts (like Taylor Swift shows) or sporting events (like the Cricket World Cup). In 2027, all eyes will be on Egypt when a total eclipse happens right above the pyramids. Analysis by the Mastercard Economics Institute of this year’s solar eclipse in the U.S. found a substantial lift in sales in the areas within the path of totality.
Cruising full steam ahead
For many travelers, the widening price difference between cruises and hotels has made cruises a more budget-friendly option for a getaway. Global cruise passenger transactions were roughly 16 percent above 2019 levels in Q1. In March, the Cruise Arabia alliance was formed by Dubai, Abu Dhabi, Bahrain and Oman’s maritime and tourism authorities to position the Arabian Gulf as an international cruise destination.
Top trending destinations
Japan (#1) and the UAE (#9) are among the global frontrunners for top trending destinations in the last 12 months. Looking forward, however, Munich ranks as the global top trending destination for this summer (June-August 2024) given the European Championship action. From Saudi Arabia, the top 3 trending destinations for summer are Cairo, Rome and Cape Town, while from the UAE they are London, Athens and Paris.
Comprehensive support to travelers and tourism sector
Mastercard is dedicated to helping the global tourism sector welcome travelers through a range of services, from market analysis and high-frequency data insights that help make sense of changing consumer trends to customer engagement strategies that personalize the travel experience and drive brand loyalty. And with comprehensive travel benefits and convenience, cardholders can enjoy their travel experiences and everyday purchases with peace of mind.
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