HomeNewsNo Decline in Consumer Tourism Spend, Despite Rising Inflation, Research Shows

No Decline in Consumer Tourism Spend, Despite Rising Inflation, Research Shows

Latest data from the big two credit card operators – Mastercard and Visa – suggest that travel and tourism are still seen, by inflation-hit consumers, as being priority spending items.

While consumers, the world over, are grappling with decades-high inflation, and a relentless increase in the cost of daily living, there has been a shift in card usage from big-ticket items to essential goods.

But, according to Mastercard, travel still qualifies as a priority – with tourism spend boosting Mastercard’s second quarter earnings.

Mastercard said its latest earnings quarter was heavily boosted by cardholders’ travel spending.

Mastercard said it saw the strongest summer of travel spending, from cardholders, since before the pandemic – with pent-up travel demand, as restrictions eased, driving the growth.

However, Mastercard warned that – based on US trends – while higher income consumers are likely to sustain the strength in travel spend for now, tourism spend could begin to fall as lower income consumers row back on their outgoings.

That said, rival Visa said it has not seen any indication of any slowdown in spending from its cardholders.

Geoff Percival
Geoff Percival
I have worked in journalism for more than 25 years. I am joining ITTN from The Irish Examiner, having worked there for the past 16 years as a senior business reporter. I have also contributed to, and written for, the likes of Business & Finance, Business Plus, The Sunday Times, The Irish News, Senior Times, and The Sunday Tribune, amongst others titles.

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