MENA Region Leads Global Growth in Luxury Travel, Reveals Mastercard Affluent Travel Report
May 07 2024 - 1:55PM
Business Wire
- Report highlights the role of high-net-worth travelers in
boosting the travel and hospitality industry
- Over a third (38%) of luxury seekers are willing to pay 30-50%
more for sustainable travel features1
- Affluent travelers in the MENA region are power users of
loyalty and membership card programs
- GCC tourists are some of the highest spenders, whether
vacationing within the region or further afield
The Middle East and North Africa (MENA) region has emerged as
one of the main regions driving growth in affluent travel,
recording high spends, while also displaying an appetite for
sustainable eco-luxury and meaningful cultural experiences.
Mastercard’s latest report, ‘Affluent Travel: A Middle East
Perspective’, released during the Arabian Travel Market 2024,
unpacks some of the key trends.
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Mastercard - Affluent Travel Report 2024
Cover (Graphic: AETOSWire)
The appetite for new experiences in unexplored destinations,
micro-trips and ‘bleisure’ will likely drive the growth of the
global luxury travel market, which is expected to grow by 7.9%
(CAGR) between 2024 and 2030, according to Grand View Research2.
While the world awaits the emergence of the first trillionaires,
high-net-worth travelers contribute approximately 36% of the global
spend on travel as stated in a Jones Lang LaSalle study3.
“At Mastercard, we are committed to connecting people to their
passion for travel. This report gives a great snapshot of how
high-net-worth individuals choose to travel, and it’s wonderful to
see sustainability, cultural immersion and purpose as key
considerations, along with quality accommodation, seamless
technology and loyalty benefits. We will continue to harness the
power of partnerships with leading industry players to come up with
innovative solutions that unlock access to a whole new world of
unparalleled travel experiences,” said Amnah Ajmal, Executive
Vice President, Market Development EEMEA, Mastercard.
As per YouGov research, over a third (36%) of luxury travelers
say they want to experience different cultures4. The combination of
business and leisure, or ‘bleisure’, is also resulting in more
remote-work trips as digital nomads change the face of travel.
Affluent travelers are almost twice as likely as the global average
to have taken a vacation as an extension to a business trip4.
Furthermore, Marriott Bonvoy research also showed that solo travel
is being embraced, with 70% of respondents in the UAE and 69% in
Saudi Arabia saying they’ve travelled solo5.
Seeking out sustainable credentials and authentic
eco-luxury
Affluent consumers are keen adopters of the conscious travel
trend and place a premium on the authenticity of eco-luxury
experiences. These include associating with travel brands that
support local communities. Globally, one in 10 consumers have
stayed in luxury eco-friendly accommodation in the last three
years, compared to five of 10 among 18–34-year-old affluents.
According to Euromonitor, a sizeable 38% of luxury seekers are
willing to pay between 30% and 50% more for sustainable travel
features such as energy-efficient services. A quarter would pay
even higher to find less carbon-intensive transport1.
Meaningful experiences over material things
The YouGov report notes that this discerning segment places more
emphasis on experiences than on physical goods. More than half of
affluent travelers, compared to 43% of the global total, prioritize
meaningful travel experiences over shopping and souvenirs4. Close
to a quarter say that they are willing to pay more for a remote
destination experience, customized tours to connect with local
culture, and eco-friendly resorts4.
Personalization, privacy and pampering
Luxury travelers are prioritizing unique personalized
experiences over location. However, they also want their money’s
worth in the form of exemplary customer service and pampering.
Quality luxury accommodation is a high priority, with 27% saying
they would pay more for villas and chalets in secluded and private
locations and 21% happy to splurge on luxury stays on a private
island4. Younger affluent travelers are more likely to pay more for
Michelin-starred or unique gourmet experiences. According to
Marriott Bonvoy research, light, air, temperature, and sound in
future hospitality spaces guided through digital concierges will
recognize and respond to guests in real-time, based on mood,
schedules, and health requirements.
High-spending loyalty supporters
Based on average spend per card by origin market, GCC travelers
are among the highest spenders. According to a 2023 Mastercard
Economics Institute report, Kuwaiti tourists, for instance, spend
on average of $3,390 per card in Paris, five times as much as their
American counterparts. High-net-worth individuals are also power
users of loyalty schemes and membership cards – 34% versus the
overall average of 24%6. Exclusive airport lounges, as well as
priority check-in and boarding, are among the most used perks of
loyalty membership, highlights the Euromonitor report1.
As wealth migrates to younger generations, Millennials (aged 30
to 44 years) now comprise the highest percentage of luxury seekers,
followed by Gen Z (aged 15 to 29) 1. Within the GCC, however, Gen X
(aged 43 to 58 years) is expected to make the highest contribution
to travel growth, according to Arabian Travel Market7. While much
of the world is still catching up to pre-pandemic travel levels,
MENA is the only region to show airport arrivals at 22% above 2019
numbers. According to the World Tourism Barometer, specific
destinations such as Qatar (+90%) and Saudi Arabia (+56%) have
contributed to this surge8.
To read more about the report, please visit here.
Notes to the editor
Mastercard’s ‘Affluent Travel: A Middle East Perspective’ report
was written by White Paper Media Consulting. Sources and data
include Mastercard Economics Institute, Marriott Bonvoy, YouGov,
Adara, Euromonitor.
References
- Bremner, Caroline; Roberts, Fflur. Meet the New Luxury Travel
Seeker: Discerning, Digitally Savvy and Diverse. Euromonitor.
February 14, 2024.
- Grand View Research. Luxury Travel Market Size, Share, and
Trends Analysis Report.
- Demuth, Zach et al. The evolution of global luxury hospitality.
Jones Lang LaSalle (JLL). May 15, 2023.
- Stewart, Eva. The future of affluent travel will balance
luxury, well-being, and exclusivity. YouGov. August 14, 2023.
- Marriott Bonvoy. Marriott Bonvoy 2024 Future Travel Trends.
January 2024.
- Mastercard Economics Institute. Tourism fuels economic
diversification in the Gulf states.
- Press Statement. Gen X driving GCC outbound travel according to
research, says ATM. Arabian Travel Market. February 6, 2024.
- UNWTO World Tourism Barometer. International Tourism to Reach
Pre-Pandemic Levels in 2024. January 19, 2024.
*Source: AETOSWire
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Mastercard Communications Amelia Naidoo -
Amelia.Naidoo@mastercard.com