Soaring passenger traffic, longer stays in Europe: Mastercard Economics Institute on travel in 2024

The travel sector in 2024 is breaking boundaries. Through March 2024, market-wide consumer spending on travel is robust with significant increases in passenger traffic, according to the latest global report from the Mastercard Economics Institute. Released today, “Travel Trends 2024” provides comprehensive insights into the evolving landscape of the travel industry across 74 markets, including Europe. 

Despite fluctuating exchange rates and varying levels of affordability, the desire to travel remains stronger than ever. In 2024 the travel sector is flourishing, with nine out of the last 10 record-setting spending days in the global cruise and airline industry occurring this year¹. Further, European travelers are also extending their trips by two extra days compared to pre-pandemic.  

Drawing on a unique 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 in Europe for the year and beyond, including: 

Tourism continues to outperform in European countries, partly driven by Americans. The travel industry in Europe shines as one of the most resilient sectors within the European economy. Despite facing inflation and higher interest rates post-pandemic, consumer demand for travel has remained strong. The number of overnight stays in Europe totaled 2.91 billion stays in 2023, compared to 2.88 billion in 2019². The significance of US tourists has also risen in Europe: US share of arrivals in Spain rose from 4% in 2019 to 5% in 2023, in Portugal from 6% to 9%, in the UK from 13% to 16%.³ 

Trending destinations in Europe. In Europe, Munich ranks as the top trending destination for this summer (June-August 2024)⁴ as the city is set to host a major global sporting event in June. This is followed by Tirana (Albania), Nice (France), Kerkyra/Corfu (Greece), and Istanbul (Turkey).  In 2024, the cheaper seaside destinations of Albania, Croatia and Turkey are registering among the highest growth in flight traffic. Tourism in Albania has grown particularly strongly, with the number of flight routes doubling since 2019 and tourist arrivals rising from 12 million in 2019 to 17 million in 2023.⁵

Top luxury vs budget destinations. More than half of the 20 priciest summer destinations in Europe are in Italy. Along the Adriatic Sea, Taormina, Rimini or several beach towns near Venice are hotspots, including San Michele al Tagliamento, Jesolo, Caorle or Lignano. French villages in Cote d’Azur (Ramatuelle, Saint-Tropez and Cannes) have earned their places in the top 20 luxurious destinations. The most affordable international summer destinations are capital cities such as Bucharest, Warsaw, Budapest, Prague) and Spanish beaches (Costa Brava, Costa Del Sol).⁶ 

The shoulder season. Tourists in Europe are shifting away from peak summer (July-August) towards “shoulder” months (May-June and September-October) ⁷. The share of overnight stays in the European Union during shoulder season increased 1.8 percentage points over the last decade ⁸. This shift makes continued growth in European travel possible as peak summer hits capacity constraints. The countries with the biggest shift away from peak summer months include Mediterranean countries like Croatia, Greece, Portugal and Italy. However, even northern countries like Denmark, Sweden, Finland and the Netherlands have seen a shift away from peak summer months. 

Leisure for longer. Tourists in Europe have spent two extra days on vacation on average – which is higher than the global average of one extra day per trip- 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 1 day. 

Experience economy on the go. Consumers have prioritized meaningful experiences over material goods, even when traveling. Spending on experiences now totals 12% of tourism sales, according to SpendingPulse Destinations⁹ 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. UK travelers tend to spend one of every six dollars on experiences and nightlife, compared to the global average, which is closer to one in every 10 dollars. Finally, European cities, including London, Paris, Barcelona, Spain, Dublin, Amsterdam, Lisbon, Portugal, Rome and Copenhagen, Denmark have the most vibrant nightlife scene in the summer.¹⁰ 

“The robustness of European tourism persists, bolstered by a rising influx of US tourists drawn to popular key European destinations such as Spain, Portugal and the UK”, said Natalia Lechmanova, Chief Economist Europe at Mastercard Economics Institute. “Our observations reveal a notable shift towards “shoulder” seasons, as European travelers opt for milder months of May-June and September-October, steering away from the crowded peak summer period. Moreover, Europe’s experience economy is set to spring forward, as there’s a clear inclination among European tourists to prioritize immersive experiences, and choosing destinations that provide both value and authenticity.” 

Comprehensive support to travelers and tourism sector 

Mastercard is dedicated to helping the global tourism sector welcome travelers through a range of services, from market analysis and high-frequency data insights that help make sense of changing consumer trends to customer engagement strategies that personalize the travel experience and drive brand loyalty. And with comprehensive travel benefits and convenience, https://www.mastercardservices.com/en/mastercard-cardholder-services cardholders can enjoy their travel experiences and everyday purchases with peace of mind.  

You can view the full “Travel Trends 2024: Breaking Boundaries” report here. Other reports and insights from the Mastercard Economics Institute can be found here. 

^[1] Mastercard Economics Institute analysis of aggregated & anonymized switched consumer volumes (nominal US dollars unadjusted for FX) through March 2024. 

^[2] Mastercard Economics Institute analysis of official data from Eurostat. 

^[3] Mastercard Economics Institute analysis of official data from Eurostat. 

^[4] Mastercard Economics Institute analysis of aggregated & anonymized leisure flight booking data provided by third party partners. 

^[5] Mastercard Economics Institute analysis of aggregated & anonymized leisure flight booking data provided by third party partners. 

^[6] Mastercard Economics Institute, Dreaming of a European Summer. Summer season covered is July-August 2023. 

^[7] Mastercard Economics Institute analysis of official data from Eurostat. 

^[8] Mastercard Economics Institute analysis of official data from Eurostat. 

^[9] Mastercard Economics Institute analysis of SpendingPulse Destinations ending March 2024. 

^[10] Mastercard Economics Institute, Dreaming of a European Summer. Summer season covered is July-August 2023.