Leisure travel in steady demand
New insights from the Mastercard Economics Institute reveal that consumers are shifting towards a more traditional travel ecosystem in 2023, prioritizing leisure travel and discovering new destinations around the world.
Especially , the latest Travel Industry Trends 2023of the Institute, provides key insights into the latest trends in the global travel community influenced by the changing economic landscape, persistent consumer demands and China's opening up.
Factors shaping the outlook for 2023, in the face of a changing economic climate, are post-pandemic preferences for experiences over material goods and steady demand for leisure travel. Although slow to recover compared to leisure travel, business travel found its pace in the second half of 2022. However, according to Mastercard Economics Institute estimates, amid an uncertain economy causing turbulence across markets, the opening of Mainland China is expected to boost global growth. In detail, the Institute's key findings include the following:
Leisure and business travel are growing at the same rate
The world leisure travelremain strong, with flight bookings up around 31% in March 2023 compared to the same month in 2019. In the second half of 2022 to early 2023, corporate bookings caught up to leisure bookings, mainly in areas where the back-to-office culture is strong. The most significant growth in business travel and leisure travel spending is in Asia Pacific and Europe at 64% and 42%, respectively, between January and March 2023.
Photo: Unsplash
Photo: Unsplash
Mainland China reopening benefits global and Asia-Pacific tourism
By March 2023, spending on experiences reached 93% of 2019, despite minimal travel last year. Economies in the Asia-Pacific region could be obvious beneficiaries of China's opening up, given their strong ties to international trade, tourism and geographic proximity. Based on 's estimatesMastercard Economics Institute, other countries expected to benefit include Northern Europe – Germany and France – and Brazil, which could see a boost in their exports to China as the economy recovers.
< p class="wp-block-heading">Travelers create new destinations
As consumers enjoy higher incomes in some destinations and return to some pre-pandemic level of comfort, they seem to be venturing out and choosing new locations. For travelers from the Asia-Pacific region, the US and Australia remain favorite spring and summer travel destinations. Meanwhile, Thailandre-emerged as one of the top 10 destinations in the region. Starting in late 2022, visitors to Hong Kong began to increase, with the destination entering the top 10 list and reaching number 3 in February 2023. Luxury travel experiences such as high-end accommodation and luxury trips to places like France and Italy will likely entice Chinese tourists emerging from a zero-coronavirus environment to rejoin the experience economy.
Photo: Unsplash
Photo: Unsplash
Travelers prioritize experiences
The preference for experiences over material goods continues to gain ground as travelers seek something unique. Influenced by social media and the need for entertainment, travelers are heading to lesser-known destinations in search of cultural immersion. From March of 2023, global spending on experiences increased by 65%, while spending on material goods increased by 12% compared to 2019. Experience-driven spending is on the rise in some destinations where lockdowns have been lifted, but Chinese tourists who traditionally are outnumbered in buying luxury goods, compared to other tourists, could boost spending on goods in all markets. Thailand, in particular, has emerged as a hot spot for travelers seeking new cultures and destinations, as well as those looking to reconnect with this enchanting and vibrant place. The country has seen significant growth in spending on experiences, which is up 40.5% compared to 2019, with spending on material goods increasing by 24%.
In 2023, travel returned to Asia as China reopened its borders and other markets eased the last of the pandemic travel restrictions. As people around the world prioritize experiences over material goods, the strong demand for travel is expected to last well beyond initial forecast. And, as the peak summer travel season approaches, the big question for the Institute is whether the supply of flights and accommodation can keep up with demand.
source: Travel.gr
