2023-06-17 12:34:53
Mastercard Economics Institute just released 2023 travel industry trends that reveal consumers, including those in the Middle East and North Africa (MENA), will benefit from a more traditional travel ecosystem in 2023 , prioritizing leisure travel and moving into new corridors around the world.
The Travel Industry Trends 2023 report thus provides key insights into the global state of travel, punctuated by changing economic landscapes, persistent consumer demands and a re-opening of mainland China, Mastercard said in a statement.
Faced with economic headwinds, the post-pandemic preference for experiences over things and continued demand for leisure travel are shaping the outlook for 2023. Initially lagging leisure travel, travel businesses have found their feet in the second half of 2022, especially in cultures that prioritize returning to the office. With an uncertain economy creating turbulence between markets, the reopening of mainland China should support global growth.
Among the key results:
– Tourists continue to prioritize experiences. The preference for experiences over things persists, and travelers around the world are showing a new demand for the singular. Potentially influenced by social media and entertainment, travelers land in lesser-known destinations in search of cultural immersion. Global spending on experiences is up 65%, while spending on things is up 12% from 2019. In the MENA region, spending on experiences is growing in some countries, such as the Morocco, where they experienced a considerable increase of 117.5% year-on-year in March 2023.
– Travelers establish new routes. In 2023, a new dynamic has emerged, with travelers exploring destinations closer to home. Egypt and Saudi Arabia entered the top 10 in the rankings this year, in seventh and eighth place respectively. The UK, USA, UAE and France remain the most popular international destinations for travelers leaving the Middle East.
– Leisure and business travel are progressing at the same pace. Leisure travel and business travel are now growing at the same rate, a change of 42% year-on-year between 2022 and 2023. In the second half of 2022-early 2023, business flight bookings caught up with leisure in regions with a strong back-to-office culture. Between January and March 2023, leisure travel bookings in the United Arab Emirates increased by 49.5% compared to the same period in 2022.
– The recovery of travel and entertainment expenses for businesses is on the rise. In the MENA region, travel and entertainment (T&E) spending by small businesses increased by 49% when comparing March 2023 to March 2022. The upward trajectory continues – from January to March 2023, spending of small businesses in terms of travel and entertainment expenses are up 56% compared to the same period in 2022. Comparing March 2023 to March 2019, expenses increased by 78% in the MENA zone. Large companies also saw growth but at lower rates of 14%, 40% and 37% respectively for the corresponding periods.
“One of the central themes of the 2023 Travel Industry Trends report is the focus on experiences over things – a strong preference among travelers following the easing of mobility restrictions. The different ways people travel are also shaping the industry this year. We were pleased to see Saudi Arabia and Egypt in the top 10 destinations for travellers. This surge in popularity speaks to the success of the post-pandemic recovery of key markets in the Middle East and North Africa,” said David Mann, Mastercard’s Chief Economist for Asia-Pacific and EEMEA.
Comprehensive support for travelers and the tourism sector
Travelers want a great experience from booking their plane ticket to taking their first step on new ground, and companies that understand this are better placed to build longer, more valuable relationships with their consumers. This shift in expectations has already begun to change not only the way companies work with their customers, but also the way we travel. While consumer behavior will continue to evolve alongside the macro environment, providing more choice in how to pay (such as redeeming points for reservations), and personalizing experiences, recommendations and offers are just two strategies that keep the individual traveler at the center of engagement.
Mastercard offers peace of mind, convenience and value to consumers and businesses of all sizes adapting to the return of travel. Whether their journey is near or far, consumer, corporate and T&E cardholders have access to a growing list of programs, platforms and partnerships. Mastercard Travel & Lifestyle Services offers travel planning services, offers, reservations, guarantees and concierge service 24 hours a day, 7 days a week. to unique experiences, benefits and offers like Mastercard Travel Rewards. Finally, for small businesses, Mastercard Easy Savings offers discounts and buying power from digital service providers, fine dining restaurants, international retailers and hotels.
Mastercard’s mission is to help the global tourism industry recover and welcome travelers through a range of services, from market analysis and high-frequency data that helps understand changing consumer trends, to solutions marketing and consumer engagement strategies that drive brand loyalty and maximize bookings.
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