The global travel sector is breaking boundaries in 2024 as consumer spending on tourism remains robust and passenger traffic soars, according to the latest report from the Mastercard Economics Institute (MEI). The recent analytics revealed that more Indians are travelling more than ever before.
In the initial quarter of 2024, a total of 97 million passengers travelled through Indian airports for both international and domestic journeys.
The report delves deep into the key tourism trends for 2024 by analysing aggregated and anonymised Mastercard transaction data, which includes Mastercard SpendingPulse and third-party data sources. In India, several themes are noticeable, including:
In 2024, due to an increasing middle class and expanded route capacity, a greater number of Indians are traveling internationally compared to previous years. During the initial quarter of 2024, 97 million passengers passed through Indian airports. A decade ago, achieving the same figure would have required an entire year.
Domestic air passenger traffic increased by 21 per cent compared to 2019 levels, while international travel saw a 4 per cent rise. It is important to mention that Indian travellers are now more inclined towards exploring important markets. There has been a 53 per cent rise in visits to Japan, a significant 248 per cent growth in visits to Vietnam, and a 59 per cent increase in visits to the United States compared to 2019, despite the stronger US dollar. This trend indicates a significant change in the travel behavior of Indians towards extensive exploration and discovery.
The report states that Amsterdam, Singapore, London, Frankfurt, and Melbourne are the top five trending destinations that Indian travellers are visiting this summer (June – August 2024), based on the change in the share of flight bookings.
According to ICRA’s analysis of the monthly domestic passenger traffic data for April 2024, the industry witnessed an estimated domestic air passenger traffic of around 132.8 lakh passengers. However, challenges persist in the industry, including flight cancellations and delays due to shortages of cabin crew and pilots, impacting overall industry capacity and customer experiences.
“Consumers in the Asia Pacific region have an intense desire and willingness to travel and are becoming increasingly savvy to ensure they get the best value and unforgettable experiences from their trips,” said David Mann, Chief Economist, Asia Pacific, Mastercard. “For tourism authorities, retailers, the hospitality and F&B sectors, the bottom line is that costs matter. In the current economy, foreign exchange rates and spending power are essential factors that influence how travellers evaluate value when planning their trips. This indicates that businesses focusing on attracting tourism spending should reassess their existing strategies and make adjustments, if needed, to retain their attractiveness to travelers.
According to Mastercard, travellers still choose to focus on experiences rather than material possessions.
Consumers around the world are still choosing experiences over material possessions. This trend is evident in the travel industry, where expenditure on experiences, particularly nightlife, accounts for 12 per cent of tourism revenue – the highest level in at least five years.
Moreover, the growing popularity of fine dining in India has led to a slight outperformance of the fine dining segment in tourism dining at the destination. By March 2024, expenditure on casual dining had increased by 49.2 per cent, whereas fine dining experienced a 55.2 per cent growth compared to the previous year.
