Spain emerged as the most visited destination globally while Dubai secured the top position in the IPK Destination Performance Index (DPI) for 2023 followed by the Maldives, South Africa, and Abu Dhabi were among the highest-rated destinations.
In 2023, outbound travel experienced double-digit growth year-on-year, marking a significant stride towards returning to pre-pandemic travel volumes. Compared to 2022, this reflected a 33 per cent increase, trailing just 12 per cent below 2019 levels. Encouragingly, there were indications of a gradual return of outbound travellers in Asia and an uptick in vacation travel. Despite escalating travel costs, interest in outbound travel remained robust, with a noticeable emphasis on travel satisfaction.
Double-digit Growth in Outbound Travel in 2023
According to the IPK World Travel Monitor®, the resurgence of outbound travel in Asia saw a year-on-year increase of over 140 per cent in 2023, serving as the primary driver of growth. Although still 37 per cent below 2019 levels, this marked a significant upward trajectory. Comparatively, outbound travel in Europe saw an 18 per cent increase, in North America a 31 per cent rise, and in Latin America a 27 per cent uptick. In 2023, the United States boasted the largest outbound travel volume, followed by Germany and the UK. Together, these three major source markets accounted for one-third of the global outbound travel volume last year.
Top Destinations in 2023 – Spain Regains Top Spot, Dubai Receives Highest Ratings
Spain emerged as the most visited destination globally, capturing nearly ten per cent of the market share, followed closely by the USA. Dubai secured the top position in the IPK Destination Performance Index (DPI) for 2023. The DPI, derived from the World Travel Monitor®, considered travel satisfaction, recommendations by travellers, and their desire to revisit a destination. Behind Dubai, the Maldives, South Africa, and Abu Dhabi were among the highest-rated destinations. Austria and Switzerland led the rankings in Europe.
Vacation Demand Surges – Sun and Beach Destinations Lead the Pack
Vacationing continued to dominate the market in 2023, with three-quarters of global outbound trips categorized as vacations. Sun and beach destinations and city breaks emerged as the top choices, each claiming approximately one-third of the market share. Round trips ranked third. Notably, the market shares of these segments converged to 2019 levels, indicating minimal pandemic-induced changes in vacation preferences. Key motivations for outbound holiday trips in 2023 included relaxation, sightseeing, culinary experiences, and shopping.
Air Travel Prevails as the Primary Mode of Transport
Over 60 per cent of outbound travel in 2023 was conducted via air travel, making it the preferred mode of transportation for international journeys. However, it’s worth noting that respondents predominantly used “public transport” at their destinations, while one-fifth opted for rental cars.
Substantial Rise in Travel Expenditure in 2023
Travel expenses witnessed an above-average increase in 2023, primarily due to elevated air travel costs, while the median number of overnight stays remained stable at around nine. “Value for money” emerged as the most significant aspect of a trip, both positively and negatively perceived. Other critical factors for travellers included accommodations, dining options, and natural surroundings.
Crisis Resolution Anticipated by End of 2024
While some travel destinations and markets have rebounded to 2019 levels, others continue to lag. In 2023, some destinations faced challenges related to overtourism, with a third of respondents expressing concerns about overcrowding. However, forecasts from the World Travel Monitor® suggest a positive outlook, with nearly every market and segment expected to achieve full recovery by the end of 2024.
Attendees of ITB Berlin can explore further insights into the industry at the ITB Berlin Convention 2024, scheduled from March 5th to 7th. This year’s event, hosted by the tourism industry’s leading think tank, will feature 17 theme tracks and presentations by industry leaders such as Booking, TUI, Google, Phocuswright, and others, offering valuable insights into the future of tourism.
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