Americans are traveling abroad in record numbers this year, putting aside concerns about inflation and “prioritizing meaningful experiences over material goods,” according to a new report from Mastercard. And people aren't afraid to spend big on these experiences, according to the card issuer: “Nine of the last 10 days of record spending in the global cruise and airline industry occurred in 2024.”
Mastercard compiled its report using anonymized spending data as well as third-party sources, which track things like visitor arrivals, length of stay and even weather data.
“Today’s travelers are discerning and choosing destinations that offer both value and authenticity,” said Michelle Meyer, chief economist and director of the Mastercard Economics Institute, who authored the report.
“They are savvy enough to maximize their funds and extend their stay, fully immersing themselves in the experiences and wonders of each location,” she added in a statement provided to Travel + Leisure.
Some of the trendy destinations right now are those where unique events are taking place, whether it's a Taylor Swift concert, an international soccer tournament or a solar eclipse. Topping Mastercard's list for this summer is Munich, which will host the 2024 UEFA European Football Championship. (That's one reason the city landed on T+L List of the 50 Best Places to Travel in 2024.) Other global hotspots include Bali; Bangkok; and Nice, France, all three gaining popularity thanks to remarkable beaches and pleasant climate.
Consumers are also looking for places that offer great value, whether through favorable exchange rates or the overall value for money of an attractive destination. Among the trendiest locations on Mastercard's list are Tokyo, where the yen is down significantly against the U.S. dollar, as well as fair-weather favorites including Aruba in the Caribbean and Cancun, Mexico, which are in the top 10.
When it comes to U.S. travelers specifically, other destinations coming out on top this summer include Athens; Barcelona; Punta Cana, Dominican Republic; and San Juan, Puerto Rico. The surge in reservations for the season contradicts some forecasts, which predicted an increase in “coolcations», or vacations in cold regions, after record temperatures in recent years. According to the latest data from Mastercard, high temperatures are not yet dampening demand.
In fact, the latest information shows that travelers actually tend to spend more time in places with warm weather: for example, in Italy, where the average temperature is 58 degrees, visitors tend to stay 5, 4 days on average. Meanwhile, in the Dominican Republic, where the average temperature is 76 degrees, visitors often stay more than a week or 7.4 days. (A few exceptions to this rule are ski destinations and places where it is often over 80 degrees.)
Another bright spot is the global cruise industry, which Mastercard says is “full steam ahead.” According to the issuer, spending on cruises increased by 16% in 2024 compared to 2019, driven in part by the value of vacations at sea. “Given persistent price increases in the hotel sector, the price difference between cruises and hotels have widened, making cruise travel a relatively more economical option in many cases,” according to Mastercard.
Indeed, travel prices are increasing considerably. In the United States, the average airfare increased by more than 20% in March 2024 compared to 2019; the average hotel room, for the same period, increased by 15 percent. Yet, according to Mastercard experts, consumers are eager to go on vacation. “Borders are meant to be broken, and that’s exactly what tourists are doing, spending in this sector in record numbers across the world,” the company said in its latest trends report. “From cruise ship bookings to premium destinations offering great value and unforgettable experiences, the appetite for travel continues to grow.”
For more on the numbers, see “Travel Trends 2024: Breaking Boundaries,” the full report from the Mastercard Economics Institute, at mastercardservices.com.
