Mastercard says value is a priority for summer travelers

Travelers are prioritizing events, less expensive destinations and longer trips in warmer climates this summer, according to a 2024 trends report from the Mastercard Economics Institute.

The report found that travelers are as determined as ever to continue traveling, even in the face of high prices and inflation. 

But value is at the forefront of decisions, especially in Europe and Asia.

Munich is at the top of the list of trending destinations this summer. Big-ticket events are likely fueling demand, like the 2024 UEFA European Football Championship and a Taylor Swift concert. Adele will also be in the city for a concert residency for the month of August. 

Tokyo ranks as the number two trending destination, with Mastercard finding that a weaker yen is helping to fuel pent-up post-pandemic demand. Japan is drawing more visitors than normal and welcomed more than three million visitors in March.

Tirana, the capital city of Albania, was third on the trending list. Mastercard found that Albania’s wallet-friendly appeal has been a driving force behind demand. Coastal hotels are a short drive away from Tirana International Airport.

Beach destinations are popular this summer, with travelers choosing France, Greece, Mexico, Southeast Asia and the Caribbean as sun-and-sand spots. U.S. travelers will stay closer to home for their beach vacations, with the report showing the strongest demand for Cancun and Aruba.

When it comes to top trending destinations over the past year, one off-the-beaten-path destination stands out. 
In the past 12 months, the top three trending destinations were Japan, Ireland and Romania. Mastercard said Romania joining the Schengen area was a big factor, prompting airlines to expand service to the country. The move has attracted additional travelers, including from Spain, Sweden and Denmark.

Longer trips in warmer climates

Travelers are taking longer trips to more affordable destinations where the dollar goes further, the Mastercard trends report found. There is also a strong correlation between trip length and climate. 

Markets with the smallest change in hotel prices have seen the biggest extension of trip length by an average of one day, the report said, compared to pre-pandemic levels. Trips are also extended by about one day per every six degrees Celsius that the temperature rises. 

Turkey, Greece, Spain and Portugal are some of the warm places in Europe where Mastercard found people taking longer trips, with an average of about six to seven days spent in those destinations, versus spending 3.5 to 5 days in places like Austria, Germany and Switzerland. 

But it’s in even warmer regions like Southeast Asia, Central and South America, and the Caribbean where trips appear to be longer, with Indonesia, Barbados and Brazil seeing travelers spend an average of 7.8 to 8.9 days.