Report shows Japan, Italy & Greece top destinations for Canadians

The Mastercard Economics Institute has released its Travel Trends 2024 global report, which provides comprehensive insights into the evolving landscape of the travel industry across 74 markets.

Despite fluctuating exchange rates and varying levels of affordability, the desire to travel remains stronger than ever.

According to the report, nine out of the last 10 record-setting spending days in the global cruise and airline industry occurred this year.

Travellers are also extending their trips by an extra day compared to pre-pandemic.

Drawing on an analysis of aggregated and anonymized transaction data, including Mastercard SpendingPulse and third-party data sources, the report takes a deep dive into key travel trends globally for the year and beyond.

Canadian travellers

Japan saw a significant spike in Canadian visitors, with a record breaking 57,800 Canadians travelling to Japan in March 2024, the highest level seen since at least 1996.

Other destinations seeing an increase in demand for travel from Canada between June and August 2024 include Rome, Athens and Edinburgh.

Canadians are also extending the length of their trips, with stays in the 12 months preceding March 2024 higher than those in the 12 months preceding February 2020.

Canadian tourism spending in 2023 saw significant seasonal fluctuations, showing that chasing pleasant weather is an increasing priority for Canadian travellers.

Record travelling

An all-time high of 15.9 million Americans travelled internationally in Q1 2024, while Japan welcomed over 3 million passenger arrivals in March 2024 alone.

The surge in travel reflects greater activity, fueled by a strong labour market and a stronger desire to travel.

Leisure for longer

Tourists worldwide have spent an extra day on vacation on average — those from Europe, the Middle East and Africa roughly two — with the trend driven by affordable destinations and warmer climates.

For each extra 6 degrees Celsius of temperature, the estimated increase in length of stay is approximately one day.

Experience economy on the go

Consumers have prioritized meaningful experiences over material goods, even when travelling.

Spending on experiences now totals 12 per cent of tourism sales, according to SpendingPulse Destinations, which measures in-store and online retail sales across all forms of payment, the highest point in at least five years as of March 2024.

Ahead of the pack, Australians tend to spend one of every five dollars on experiences and nightlife compared to the global average, which is closer to one in every 10.

Cruising full steam ahead

Cruises are making a remarkable comeback with the count of global cruise passenger transactions roughly 16 per cent above 2019 levels in Q1.

Booming cruise demand is also seen at key ports.

Over the last 12 months, The Bahamas has welcomed an additional 2.9 million passengers arriving by sea versus 2019 levels.

For many travellers, the widening price difference between cruises and hotels has made cruises a more budget-friendly option for a getaway.

Top 10 trending destinations — and dupes

While Japan has emerged as the global frontrunner for top destination in the last 12 months, Munich ranks as the top trending destination for this summer (June-August 2024).

Notably, Albania ranks third in the list of top trending destinations this summer according to the Mastercard Economics Institute.

“The resilience and adaptability of the travel sector paired with persistent consumer demand has translated to a strong tourism rebound,” said Michelle Meyer, chief economist and head of the Mastercard Economics Institute. “Just like at home, travellers are prioritizing experiences over goods while abroad. Yet, today’s travellers are discerning, choosing destinations that offer both value and authenticity. They are savvy enough to stretch their funds and extend their stays, immersing themselves fully in the experiences and wonders of each locale.”

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