Globetrotting
After a steep drop during the pandemic, global air passenger traffic in 2024 surpassed volumes recorded in 2019. Although some areas are still recovering, particularly international outbound traffic from China, consumers continue to express a strong interest in exploring the world. Led by a 15.6% jump in Asia-Pacific, global air passenger traffic rose 10.7% year-on-year according to the International Air Transport Association (IATA). Next to flights, consumer spending on accommodation has helped push total industry revenue up 12% relative to 2019. With consumers increasingly seeking unique experiences, services like Airbnb and VBRO have redefined the accommodation market by making second home inventory available for rent online. Spending on these alternative accommodations has grown 49% since 2019, according to McKinsey That said, hotels still account for 74% of travel accommodation spending. Tapping into the demand for differentiation, bookings at boutique hotels are expected to nearly double by 2032, according to travel technology provider Amadeus. We wrote more about travel and other consumer trends including digital entertainment and injectable aesthetics here.
Source: Skift, TravelPerk, McKinsey, May 2024.