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Travel Industry Trends 2023: Mainland China Re-Opens, Experiences Endure, and Business Travel Bounces Back

Shanghai skyline - Source Mastercard

The year of the rabbit could unleash mainland China’s potential

New insights from the Mastercard Economics Institute reveal that consumers are taking advantage of a more traditional travel ecosystem in 2023, prioritizing leisure travel and pioneering new corridors around the world. Released today, Travel Industry Trends 2023 delivers key insights about the global state of travel, punctuated by shifting economic landscapes, persistent consumer demands, and a reopening of mainland China.

In the face of a changing economic landscape, post-pandemic preferences for experiences over things1 and a consistent demand for leisure travel shape the 2023 outlook. Initially lagging leisure travel, business travel found its footing in the latter half of 2022, especially in cultures prioritizing a return to office. With an uncertain economy providing some cross-market turbulence, mainland China’s reopening is expected to bolster growth globally with concentrated impact in Asia Pacific, according to Mastercard Economics Institute estimates.

Key findings include:

“In the first full year of unfettered travel since the pandemic, consumers are acting on pent-up desire to explore new locales, connect with friends and family, and accumulate experiences to make up for lost time,” said Bricklin Dwyer, Mastercard chief economist and head of the Mastercard Economics Institute. ”Despite evolving economic landscapes, resilient consumers continue to prioritize travel. And with new corridors emerging and China reopening, the 2023 outlook indicates good reason to be optimistic.”

Comprehensive Support to Travelers & Tourism Sector

Travelers want a good experience from the time they book their plane ticket to their first step on new soil, and companies that understand that are better positioned to establish longer and more valuable relationships with their consumers. This key shift in expectations has already started to change not only how companies work with their consumers, but also the way in which we travel. And though consumer behavior will continue to shift alongside the macroeconomic environment, providing more choice in how to pay (like redeeming points for bookings), and tailoring experiences, recommendations, and offers are just two strategies that keep the individual traveler at the center of engagement.

Mastercard is dedicated to helping the global tourism sector recover and welcome travelers through a range of services, from market analysis and high-frequency data insights that help make sense of changing consumer trends to marketing solutions and consumer engagement strategies that drive brand loyalty and maximize bookings.

You can view the full Travel Industry Trends 2023 report here. Other reports and insights from the Mastercard Economics Institute can be found here.

1“Experiences” includes tourist spending at restaurants, amusement parks, casinos, nightclubs, bars and other events, while “Things” includes tourist spending at convenience store chains, apparel, cosmetics, sporting goods, jewelry, footwear, bookstores, electronics, toys and department stores. Excludes transportation and lodging spend. Represents analysis of aggregated & anonymized switched volumes (nominal US dollars unadjusted for FX) for leisure travelers while in-destination.

2 Corresponds with the number of flight bookings made by leisure travelers during reference period relative to the same time in 2019. Based on aggregated & anonymized Mastercard flight booking data provided by third party partners, sourced by Mastercard Economics Institute.

3 Corresponds with the number of commercial flight bookings made during reference period relative to the same time in 2019. Based on aggregated & anonymized Mastercard flight booking data provided by third party partners sourced by Mastercard Economics Institute.

4 Represents Mastercard Economics Institute analysis of aggregated & anonymized switched volumes (nominal US dollars unadjusted for FX) for corporate travel & entertainment expenses.

6“Experiences” includes tourist spending at restaurants, amusement parks, casinos, nightclubs, bars and other events, while “Things” includes tourist spending at convenience store chains, apparel, cosmetics, sporting goods, jewelry, footwear, bookstores, electronics, toys and department stores. Excludes transportation and lodging spend. Represents analysis of aggregated & anonymized switched volumes (nominal US dollars unadjusted for FX) for leisure travelers while in-destination.

7Analysis based on the number of inbound international flight bookings made by selected region into destination markets displayed on the chart. Based on aggregated & anonymized Mastercard flight booking data provided by third party partners sourced by Mastercard Economics Institute.

8“Experiences” includes tourists spending at restaurants, amusement recreation activities, casinos, nightclubs, bars and other events, while “Things” includes convenience store chains, apparel, cosmetics, sporting goods, jewelry, footwear, bookstores, electronics, toys and department stores. Excludes transportation and lodging spending. Represents analysis of aggregated & anonymized switched volumes (nominal US dollars unadjusted for FX) for leisure travelers while in-destination.

Disclaimer: This presentation and content are intended solely as a research tool for informational purposes and not as investment advice or recommendations for any particular action or investment and should not be relied upon, in whole or in part, as the basis for decision-making or investment purposes. This presentation and content are not guaranteed as to accuracy and are provided on an “as is” basis to authorized users, who review and use this information at their own risk. This presentation and content, including estimated economic forecasts, simulations or scenarios from the Mastercard Economics Institute, do not in any way reflect expectations for (or actual) Mastercard operational or financial performance.

About Mastercard Economics Institute

Founded in 2020, the Mastercard Economics Institute draws on unique, high-frequency and actionable economic measurement to give leaders in business and government the insights needed to make thoughtful decisions with better outcomes. ​

Posted by on May 11, 2023.

Categories: Trends

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