Published: May 30, 2024 | Updated: May 30, 2024
Read time: 5 minutes
Introduction
2024 is shaping up to be a strong year for the experience economy, according to The Mastercard Economics Institute’s fifth-annual travel report, Travel Trends 2024: Breaking Boundaries.
Nine out of the last 10 record-setting spending days in the global cruise and airline industry have occurred in 2024, and the Mastercard Economics Institute anticipates this momentum will continue. For the travel industry, tourism and the resilient consumer are the bright spots in the global macroeconomy with more people traveling than ever before.
Top global themes
Top themes in the Asia Pacific region
Here’s how the dynamics are playing out in Asia Pacific:
- Asia Pacific is seeing varying trends both inbound and outbound depending on the region.
- South Asia: Travel is democratizing rapidly in India and will continue with nearly 20 million more people entering the middle class over the next 5 years. Country-wide domestic passenger traffic is 21% above 2019 levels as of March 2024, reflecting the nation’s growing disposable incomes and aspirational lifestyles.
- ASEAN: Passenger traffic is rebounding for ASEAN countries, particularly for shorter, regional trips. Thailand has been one of the markets most affected by economic changes in recent years, but the Mastercard Economics Institute projects 2024 to be the year Thailand fully recovers to its pre-pandemic economic levels. ASEAN markets flew into Thailand at a 19.9% higher rate in March 2024 than 2019 levels.
- Northeast Asia: Two economies stand out in the region: Japan and Chinese Mainland. Japan is among the most interesting stories in the travel space this year, seeing record breaking inbound passenger flows. In March 2024, Japan saw 11.6% more passenger arrivals compared to the same time in 2019. While in Chinese Mainland, domestic tourism is exceeding 2019 levels, and the Mastercard Economics Institute estimates that international outbound flight traffic will recover back to 2019 levels by late 2024 at its current pace.
Trending destinations in Asia Pacific
Spending while traveling
Consumer spending on travel remains strong. Some behaviors stand out:
- Experiential oriented spend – like nightlife – continues to gain importance over retail shopping in the priorities of travelers globally.
- The share of total sales attributed to global tourism spending on experiences as of March 2024 is 12% higher than ever before.
- There is much stronger demand for luxury over casual in markets like Japan and United Arab Emirates.
- The picture is mixed for dining out globally. Tourists favor a laid-back experience in countries like Spain and Brazil, whereas the fine dining scene is burgeoning in India.
Leisure for longer
Tourists and leisure travelers are enjoying more time on vacation. Here are some of the impacts:
- Longer trips are translating to an extra boost for destinations.
- Longer stays generally translate to more spend per trip and can translate to an economic boost for local economies.
- There is a clear inverse relationship between price of destination and days. Cheaper destinations = longer stays.
- In addition, the warmer the destination, the more time consumers tend to spend there.
For more insight and market analysis on the global tourism sector, view the Mastercard Economics Institute’s full “Travel Trends 2024: Breaking Boundaries” report.
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