Mastercard Economics Institute research indicates the top 10 trending destinations from June to August 2024 for American travelers include Oranjestad, Aruba (2nd), Punta Cana, Dominican Republic (5th), San Juan, Puerto Rico (6th), and Santiago, Dominican Republic (10th).
A robust economy and a growing desire for experiential travel are fueling a record-breaking year for the tourism industry, according to the report released in May 2024 by the Mastercard Economics Institute analyzing travel from March 2023 to March 2024.
“Travel Trends 2024: Breaking Boundaries,” reveals that consumer spending on travel remains strong through March 2024, with passenger traffic soaring and surpassing pre-pandemic levels. The report, fifth in a series, predicts this upward trajectory will continue as travelers prioritize meaningful experiences and allocate a larger portion of their budgets to vacations.
A key finding of the report is that travelers are extending their trips by an average of one extra day compared to 2019. Internationally, there has been a notable increase in vacation time, rising from 4.5 days in 2020 to 5.5 days in 2024. The shift indicates a growing preference for more immersive and in-depth travel experiences. Cruise vacations have also seen exceptional growth, outpacing pre-pandemic records.
The Mastercard Economics Institute study explains that while challenges such as fluctuating exchange rates and climate concerns persist, the overall desire to travel remains strong. The solid economic backdrop and strong labor market around the world is allowing consumers to spend more on travel.
The report indicates that US consumers continue to allocate more of their budgets to travel. Record travel: a historic high of 15.9 million Americans traveled internationally in the first quarter of 2024.
The report says the findings highlight a broad-based travel recovery. It states that those who are traveling to the Caribbean are not just the highest-income households but represent a broader customer base as well. “In our Trending Destinations section, this pattern should continue through the summer of 2024, with Aruba and the Dominican Republic both in the top five trending destinations for US travelers this year,” state the Mastercard analysts.
The study also highlights a growing disparity between travel destinations. Caribbean islands with more affordable hotel options have experienced significant growth in hotel sales, indicating a broader base of travelers. However, luxury destinations catering to higher-income individuals who had initially lagged behind due to economic uncertainties but are now showing signs of recovery. There continues to be a trend favoring destinations with warm climates.
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Mastercard
Diario Libre
DMK Lawyers
13 August 2024