Mastercard Recovery Insights: Italy, Russia and France Lead Travel & Entertainment Spending Recovery in G20 Countries
September 01 2020 - 12:01AM
Business Wire
New Report Spotlights the Rise of Boutique Hotels, the Return of
the Road Trip and Other Emerging Trends
In the U.S., Retail Sales Continue to Improve, with Overall
Retail Sales Ex. Auto Down Just -3% So Far this Summer Compared to
2019, According to Mastercard SpendingPulse*
Despite the challenges brought on by COVID-19, there are
promising signs in consumer spending – including hard-hit sectors
like travel, according to Mastercard Recovery Insights. Today,
Mastercard released Recovery Insights: Travel Check-In, the second
report in its series focused on the impacts of the pandemic,
including emerging trends in travel spending.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200831005780/en/
Recovery of T&E spend in G20
countries in July 2020 relative to last year (Graphic: Business
Wire)
In particular, the analysis of anonymized and aggregated sales
activity across the Mastercard network, including in-person and
online transactions, shows that Italy, Russia and France are
leading in terms of the recovery of travel and entertainment
spending across the G20. This includes travel sectors such as
airlines and lodging as well as activities such as eating out.
Despite being a focus of the pandemic earlier this year, Italy’s
significant restaurant culture and extensive domestic tourism
industry have helped it to bounce back faster than other markets,
including the U.S, Brazil and India.
As the broader global economy begins to show signs of
improvement, a number of trends have emerged that mirror overall
consumer spending—in particular the shift to a smaller retail
radius as consumers travel and spend closer to home.
“There’s no doubt that people love to travel. What we’re seeing,
though, is that how they’re traveling has adapted during this time.
Gas spending, restaurant spending, bike rental spending – all are
improving, showing that the rebound is happening but is focused on
local travel and local spending. In other words for those of us in
the U.S., the great American road trip has returned in a new way,”
says Steve Sadove, Mastercard senior advisor and former CEO of
Saks.
Overall key trends spotlighted in Mastercard Recovery Insights:
Travel Check-In, according to the analysis of anonymized and
aggregated sales activity across the Mastercard network,
include:
- Localism Takes Off: In Q2 2020, auto rental’s share of
total transportation spending nearly doubled from 9% in 2019 to 17%
as consumers prioritized local means of transport. In Switzerland
and Germany, for instance, non-air travel made up roughly
three-quarters of travel spending the week ending August 7. This
tendency to travel closer to home has also driven the trajectory of
rentals of micro-mobility solutions (e.g., scooters, bicycles) in
countries like the U.S., where they surpassed 2019 levels at the
end of July. The rebound of gas spending this summer also speaks to
consumers getting out and spending but maintaining a tighter
footprint.
- Boutique is Chic: Our analysis shows that travelers are
increasingly opting to stay small. Recently, the global recovery
rate of small independent hotels has outpaced the recovery of large
hotels by over 50%.
- Consumer Travel Leads the Recovery: An analysis of
consumer cards compared to business cards shows that spending on
consumer air travel and auto rentals is returning ahead of
commercial travel.
When looking at U.S. retail sales more broadly, there is also a
rebound in spending. According to Mastercard SpendingPulse*, which
tracks overall retail sales across all payment types including cash
and check, retail sales ex. auto were down just -3 percent for the
summer (June 1-August 15) compared to the same time last year. And,
total U.S. travel & entertainment retail sales, including
airlines, lodging and restaurants, improved in July (-21.5% year
over year) compared to June (-25.9%), according to
SpendingPulse.
Mastercard has been committed to helping retailers, restaurants,
CPG brands and many others navigate the challenges of the pandemic
– and now the recovery. This has included making certain
insight-driven tools available at no cost to governments and small
businesses to give a timely snapshot of economic performance during
this time. Having the ability to make informed decisions is
critical to the long-term success of companies, communities and
individuals around the world.
*About Mastercard SpendingPulse
Mastercard SpendingPulse™ reports on national retail sales
across all payment types in select markets around the world. The
findings are based on aggregate sales activity in the Mastercard
payments network, coupled with survey-based estimates for certain
other payment forms, such as cash and check. As such,
SpendingPulse™ insights do not in any way contain, reflect or
relate to actual Mastercard operational or financial performance,
or specific payment-card-issuer data.
About Mastercard Recovery Insights
Mastercard launched Recovery Insights to help businesses and
governments better manage the health, safety and economic risks
presented by COVID-19. The initiative draws on Mastercard's
analytics and experimentation platforms, its longstanding
consulting practice and unique data-driven insights to deliver
relevant and timely tools, innovation and research.
About Mastercard (NYSE:MA)
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. Our decency quotient, or DQ,
drives our culture and everything we do inside and outside of our
company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all.
www.mastercard.com
Download the full report
here.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200831005780/en/
U.S.: Will Tsang Will.Tsang@Mastercard.com (914) 414-5420
Global: Julia Monti Julia.Monti@Mastercard.com (914)
217-9533
MasterCard (NYSE:MA)
Historical Stock Chart
From Jun 2024 to Jul 2024
MasterCard (NYSE:MA)
Historical Stock Chart
From Jul 2023 to Jul 2024