Bangkok among world’s top 10 summer vacation destinations: Mastercard

The ranking is part of the MEI's fifth annual report, "Travel Trends 2024: Breaking Boundaries", which provides insights into the changing landscape of the travel industry across 74 markets, including 13 in the Asia Pacific (APAC).

Bangkok is ranked seventh out of the top 10 cities where demand is expected to increase over the next three months. 

The study analysed Mastercard transaction data and examines key tourism trends for 2024 and beyond.

Speaking at an online press conference, David Mann, Mastercard's chief economist for Asia Pacific (APAC), noted that Thailand was already a popular destination in the APAC region prior to the pandemic. According to the most recent data, the country's tourism industry is expected to fully recover by 2024, with total visitor arrivals now only 7% below pre-pandemic levels.

According to MEI, Thailand is on the top of the lists in South Asia and the Middle East, with Chinese and Malaysians making up the largest number of tourists to Thailand. Notably, inbound flight traffic from South Asia and the ASEAN region is up nearly 20 % from 2019. 

Among the top 10 countries for upcoming holiday hot spots during June-August, Munich in Germany is the No. 1 summer destination in terms of share gain in flight bookings, replacing Japan, which was the top trending destination in the previous year. The swing is due to Germany’s hosting of the UEFA Euro 2024 football tournament in June. 

Meanwhile, Tokyo comes in a close second, followed by Triana in Albania, Nice in France, and Cancun in Mexico.

Bali, Indonesia, was sixth, a spot ahead of Bangkok. Corfu, Greece was in eighth spot, followed by Frankfurt, Germany, and Oranjestad, Aruba.

According to the MEI's fifth report, APAC destinations are trending strongly, accounting for half of the top 10 hotspots with the most momentum among travellers. This is measured and ranked according to the change in share of tourism transactions over the previous 12 months, ending March 2024. 

The region's passenger traffic is improving, particularly for shorter, intra-regional trips. For example, Bangkok, Kuala Lumpur, and Perth are among the top summer destinations for Singaporeans.

Mann stated that consumers in the Asia Pacific region have a strong desire and willingness to travel and are becoming more savvy to ensure they get the best value and unforgettable experiences from their trips.

The study found that costs were becoming an increasingly important consideration for travellers. 

"Costs are important for tourism authorities, retailers, the hospitality and food and beverage industries. In today's economy, foreign exchange rates and spending power have become critical factors in determining a traveller's perceived value when making plans. This suggests that businesses relying on tourism dollars should review their current strategies and, if necessary, shift them to maintain their appeal to travellers," he explained. 

Furthermore, despite being the largest tourist destination in the world, he noted that the Chinese mainland's travel dynamic had shifted, as more Chinese tourists prioritise domestic trips over international ones. 

However, outbound traffic from China looks promising in 2024, thanks to visa exemptions in APAC and beyond, as well as an increase in international flight capacity, which benefits destinations such as Singapore, Malaysia, and Thailand. 

Among tourists worldwide, the tourism industry is seeing more Indians travel than ever before. The trend is fuelled by a growing middle class, increased route capacity, and a strong desire to travel.

It is believed that in 2024, more Indians will travel internationally than ever before. 

The MEI discovered that in the first three months of 2024, 97 million passengers passed through Indian airports. Just 10 years ago, the same number would have been achieved in a full year. Domestic passenger traffic is up 21% from 2019, while international passenger traffic is up 4% as of March 2024.

Indian travellers to key markets will increase significantly in 2024 compared to 2019: Visitors to Japan increased by 53%, to Vietnam by 248%, and to the United States by 59%, despite the fact that total overseas arrivals to the United States remain 7% lower than in 2019, owing primarily to the strong US dollar.

Other interesting findings include the fact that tourists in APAC (excluding Australia and New Zealand) are extending their trips by an average of 1.2 days in 2024, for a total duration of 7.4 days, driven by the affordability of destinations, warm weather, and favourable exchange rates. This compares to a 2019 average of 6.1 days per trip. 

The APAC destinations with the longest increase in trip duration between 2019-2024 are: India (+2 days), Vietnam (+2 days), Indonesia (+1.9 days), and Japan (+1.4 days), owing primarily to lower hotel price growth during this period compared to other markets. 

Mann pointed out that longer stays tend to result in more spending per trip, which benefits local economies.

Meanwhile, global consumers continue to value experiences over material goods. This is reflected in the travel industry, where spending on experiences and nightlife accounts for 12% of total tourism sales, the highest level in at least five years. Retail sales are recovering at a slower rate. Tourists still prefer laid-back vibes, except in areas where luxury retail and fine dining offer excellent value for money.

The study found that Australia, India, and Thailand now have thriving fine dining scenes, resulting in premium dining outperforming casual dining, which remains dominant elsewhere.

Overall, despite fluctuating exchange rates and varying levels of affordability, travel is booming, with nine of the last 10 record-breaking spending days in the global cruise and airline industries taking place this year. 

Looking ahead, the MEI expects this trend to continue as consumers worldwide prioritise meaningful experiences and devote more of their budgets to travel.