Travel Spending Is Up After a Record-Setting Start to 2024

We’re not
even five full months through this year and already nine of the last 10 record-setting
travel spend days have occurred.

You don’t
need a degree to extrapolate that spending on travel is flourishing.

According
to the latest global report from the Mastercard Economics Institute, which
utilized data from 74 markets, fluctuating exchange rates have not been a
problem and in fact travelers are extending their trips by one day compared to
pre-pandemic levels. 

“The resilience and
adaptability of the travel sector paired with persistent consumer demand has
translated to a strong tourism rebound,” said Michelle Meyer, chief
economist and head of the Mastercard Economics Institute. “Just like at home,
travelers are prioritizing experiences over goods while abroad. Yet, today’s
travelers are discerning, choosing destinations that offer both value and
authenticity. They are savvy enough to stretch their funds and extend their
stays, immersing themselves fully in the experiences and wonders of each
locale.”

Almost 16 million Americans
took an airplane trip or a cruise internationally in the first quarter of 2024.

Travelers are enjoying more
experiential adventures as opposed to goods and souvenirs. Spending on
experiences now totals 12 percent of tourism sales, according to SpendingPulse
Destinations which measures in-store and online retail sales across
all forms of payment — the highest point in at least five years as of March
2024. 

More people are also hitting
the water — at least by boat. The count of global cruise passenger transactions
is roughly 16 percent above 2019 levels in Q1. Booming cruise demand is also
seen at key ports. Over the last 12 months, The Bahamas for instance has
welcomed an additional 2.9 million passengers arriving by sea versus 2019
levels. 

Japan has emerged as the
global frontrunner for top destination in the last 12 months. Munich ranks as
the top trending destination for this summer.

Domestically,
it appears that California
is the top choice.

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