Americans are setting inflation worries aside to take more international trips this year than ever before, “prioritizing meaningful experiences over material goods,” according to a new report from Mastercard. And card issuers say people aren’t shying away from spending big bucks for those experiences: “Nine of the last 10 highest spending days on record for the global cruise and airline industries occurred in 2024.”
Mastercard compiled the report using anonymized spending data and third-party sources that track things like visitor arrivals, length of stay and even weather data.
“Today’s travelers are discerning, choosing destinations that offer both value and authenticity,” said Michelle Meyer, chief economist and president of the Mastercard Economic Research Institute, which compiled the report.
“They are wise enough to put their money to good use, extend their stay and fully immerse themselves in the experiences and charm of each destination,” she added in a statement provided to Travel + Leisure magazine.
Among today’s trending travel destinations are those hosting once-in-a-lifetime events like a Taylor Swift concert, an international soccer tournament, or a solar eclipse. Topping Mastercard’s list this summer is Munich, host of the 2024 UEFA European Football Championship. (That’s one of the reasons the city made it onto T+L’s list of the 50 best places to travel in 2024.) Other global hotspots include Bali, Bangkok, and Nice, France, all three of which are booming in popularity thanks to their amazing beaches and pleasant climates.
Consumers are also looking for places that offer good value, such as favorable exchange rates and overall value for money in attractive destinations. Among the most popular spots on Mastercard’s list are Tokyo, where the yen has weakened significantly against the US dollar, and popular Caribbean destinations Aruba and Cancun, Mexico, both of which make the top 10 when the weather is nice.
Other destinations, including Athens, Barcelona, Punta Cana in the Dominican Republic and San Juan, Puerto Rico, have risen to the top of this summer’s list of most popular getaways, particularly for U.S. travelers. The seasonal surge in bookings contradicts some predictions that the record heatwaves in recent years would lead to an uptick in “coolcations,” or vacations to cooler places. The hotter temperatures haven’t yet dampened demand, according to the latest data from Mastercard.
In fact, recent information shows that travelers tend to spend more time in warmer climates. For example, in Italy, where the average temperature is 58 degrees, visitors tend to stay an average of 5.4 days. Meanwhile, in the Dominican Republic, where the average temperature is 76 degrees, visitors often stay for more than a week, or 7.4 days. (Exceptions to this rule are ski resorts and other places where temperatures often exceed 80 degrees.)
Another bright spot is the global cruise industry, which Mastercard says is “full steam ahead.” The company said spending on cruises will increase 16% in 2024 compared to 2019, driven in part by the value of a vacation at sea. “Due to continued price increases in the hotel industry, the price gap between cruises and hotels is widening, making cruise travel a relatively budget-friendly option in many cases,” Mastercard said.
Indeed, the price of travel has risen substantially. In the U.S., the average airfare in March 2024 rose more than 20% compared to 2019, while the average hotel room rate rose 15% over the same period. Still, experts at Mastercard say consumers are excited to get away on vacation. “Boundaries are there to be broken, and tourists are doing just that by spending in record numbers across travel categories around the world,” the company said in its latest trends report. “Whether it’s booking a cruise ship or visiting popular destinations that offer great value and unforgettable experiences, the desire to travel continues to grow.”
For more details on the numbers, see the full report from the Mastercard Economics Institute, “Travel Trends 2024: Breaking Boundaries,” at mastercardservices.com.
