Italy, Russia, France lead travel and entertainment spending recovery in G20 countries
According to the press release, the analysis of anonymised 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 US, Brazil, and India. As the broader global economy begins to show signs of improvement, several 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.
Overall key trends spotlighted in Mastercard Recovery Insights: Travel Check-In, 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 prioritised local means of transport. In Switzerland and Germany, for instance, non-air travel made up roughly three-quarters of travel spending the week ending 7 August. The rebound of gas spending this summer also speaks to consumers getting out and spending but maintaining a tighter footprint.
Boutique is chic: The 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 US 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 from auto were down just -3 percent for the summer (1 June -15 August) compared to the same time in 2019. And, total US 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.
Overall, 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.