With an average spend per resident amounting to $3,580, the US source market is projected to be the most valuable globally in terms of average overseas tourism expenditure in 2021, according to GlobalData’s latest forecast.
The leading data and analytics company notes that the willingness of the US market to dedicate significant amounts of its disposable income to international trips could help to drive the recovery of many destinations across the globe.
GlobalData’s latest thematic report, ‘Premiumization in Travel & Tourism (2022)’, reveals that within the top 10 outbound destinations for the US market in 2021, six would be classed as long-haul destinations, due to the average flight time being more than six hours.
The heightened demand for long-haul destinations is driven by the substantial levels of disposable income that many US travelers have. In fact, the US has more millionaires than any other nation. In 2021, the number of US citizens that were worth $1 million to $1.5 million is projected to be 237.4% more than China which has the second-highest.
Ralph Hollister, Travel and Tourism Analyst at GlobalData, comments: “The average length of stay for an international trip from the US market was 18 days in 2021, showcasing that Americans will stay in a destination for a lengthy period of time. This point adds to the attractiveness of US travelers for destinations across the globe.”
According to GlobalData, global outbound tourist expenditure is forecast to increase at a Compound Annual Growth Rate (CAGR) of 22% between 2021 and 2024, with expenditure finally exceeding pre-pandemic levels by 2024. A driving force behind this recovery will be US travelers as their dollars will be sent to a range of different continents contributing to economic recovery on an international scale.
Europe is particularly popular with Americans. The culture and food in the likes of France and Italy are major pull factors. However, a high-quality sun and beach product is essential for many. According to GlobalData*, 42% of US respondents stated that they typically undertake sun and beach holidays, which was the most popular type of trip taken. These common preferences hint as to what aspects of a tourism product Destination Management Organisations (DMOs) should be marketing to this lucrative market.
Hollister adds: “The US market’s high average overseas expenditure, willingness to travel long-haul, tendency to stay for long periods of time, demand for a range of different experiences, and a solid number of high-net-worth individuals means it will drive international tourism recovery.”
*GlobalData Q3 2021 Consumer Survey