In this blog post, we will explore the latest insights and trends relating to travel.
Search Trends: Regional Highlights
Europe
Germany and the UK lead the way with year-over-year (YoY) growth at 9%. The summer season is expected to bring a surge in demand, marking a return to pre-pandemic seasonality.
MENA (Middle East and North Africa)
MENA is showing positive YoY growth, with the UAE and Morocco leading the way at 17% and 15%, respectively. Israel is also displaying signs of recovery, indicating a promising outlook for the region.
APAC (Asia-Pacific)
While APAC is not seeing significant month-over-month growth, it is still growing at an impressive 23% YoY. Taiwan and Japan are the main drivers of growth in the region, while Indonesia has recovered from a decline and is now at 8% YoY.
North America
North America is slightly behind in YoY growth, standing at 9%. Both Canada and the USA are following similar trends in terms of growth compared to the previous month.
LATAM (Latin America)
LATAM has seen an acceleration in growth, reaching 12% YoY. Brazil and Argentina are leading the way, while Colombia and Chile have also shown acceleration, currently at 3% and 6% YoY, respectively.
EMEA Summer Trends
The Mastercard Economics Institute’s Travel Industry Trends 2023 report provides valuable insights into today’s traveller and the impact of global events on the industry. Here are some key takeaways:
Leisure and Business Travel
Global leisure travel experienced a 31% increase in March 2023 compared to the same period in 2019. Business travel is now growing at a similar rate, with a 33% increase from March 2019.
Mainland China’s Influence
Outbound tourism expenditures from mainland China are approaching pre-pandemic levels. By March 2023, Chinese travellers’ spending on experiences abroad has risen significantly from nearly negligible levels in the previous year to reaching a point just below the levels observed in 2019.
Spending Patterns
Travellers are prioritising experiences such as dining out, visiting amusement parks, nightclubs, and bars. Spending on experiences has increased by 65% compared to 2019. On the other hand, spending on physical goods, such as apparel and cosmetics, has grown by 12%.
Conclusion
As we enter the summer season of 2023, the travel industry is on the path to recovery, showing positive growth trends across different regions.
With Europe, MENA, APAC, North America, and LATAM each displaying unique patterns of growth, it is clear that the desire to travel is making a comeback. Traveller behaviours are evolving, with an emphasis on value, early bookings, and a willingness to explore a broader range of destinations.
By staying informed about the latest industry insights and trends, travel businesses can adapt their strategies and cater to the changing needs and preferences of travellers worldwide.
