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Travel and Tourism

Travel and tourism satellite account for 2018-2022.

The travel and tourism industry—as measured by the real output of goods and services sold directly to visitors—increased 21.0 percent in 2022 after increasing 53.6 percent in 2021, according to the most recent statistics from BEA’s Travel and Tourism Satellite Account.

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• U.S. Travel and Tourism Satellite Account for 2018–2022 By Hunter Arcand and Paul Kern - Survey of Current Business April 2024
• "U.S. Travel and Tourism Satellite Account for 2015–2019" By Sarah Osborne - Survey of Current Business December 2020
• "U.S. Travel and Tourism Satellite Account for 2015-2017" By Sarah Osborne and Seth Markowitz - Survey of Current Business June 2018
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Measures how much tourists spend and the prices they pay for lodging, airfare, souvenirs, and other travel-related items. These statistics also provide a snapshot of employment in the travel and tourism industries.

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PHILIPPINES AND BRUNEI DARUSSALAM SIGN LANDMARK AGREEMENT TO BOOST TOURISM COOPERATION

Brunei Darussalam — The Philippines and Brunei Darussalam have joined hands in a momentous agreement that will significantly enhance and...

FUSING MILITARY HERITAGE WITH CULTURAL TOURISM WHILE INCREASING SAFETY AND SECURITY OF TOURISTS AT THE WALLED CITY

The Department of Tourism (DOT), in partnership with the Intramuros Administration (IA) and the Armed Forces of the Philippines...

PBBM, FRASCO LEAD INAUGURATION OF TOURIST REST AREA IN PAGUDPUD

Pagudpud, Ilocos Norte—President Ferdinand R. Marcos, Jr., together with Tourism Secretary Christina Garcia Frasco, led the inauguration of the...

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Tourism in the Philippines

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THE PHILIPPINES IN NUMBERS

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Travel and tourism.

The National Travel and Tourism Office , part of ITA, creates a positive climate for growth in travel and tourism by reducing institutional barriers to tourism, administers joint marketing efforts, provides official travel and tourism statistics, and coordinates efforts across federal agencies through the Tourism Policy Council. The Office works to enhance the international competitiveness of the U.S. travel and tourism industry and increase its exports, thereby creating U.S. employment and economic growth through:

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Destination readiness: Preparing for the tourist flows of tomorrow

Tourism can help build a more connected, more vibrant world. But as tourism grows rapidly, the most visited destinations are experiencing more concentrated flows (Exhibit 1). Recent satellite data suggests that 80 percent of travelers visit just 10 percent of the world’s tourist destinations. The number of travelers and the frequency of their trips are only set to increase.

A large flow of tourists, if not carefully channeled, can encumber infrastructure, harm natural and cultural attractions, and frustrate locals and visitors alike. Today’s tech-enabled travel landscape can exacerbate this issue: one eye-catching photo on a social media network can make a little-known attraction go viral.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

Against this backdrop, now is the time for tourism stakeholders to combine their thinking and resources to look for better ways to handle the visitor flows of today—while properly preparing themselves for the visitor flows of tomorrow. We offer a diagnostic that destinations can use to spot early-warning signs about tourism concentration, followed by suggestions for funding mechanisms and strategies to help maximize the benefits of tourism while minimizing its negative impacts.

Carrying capacity and its impact on destination readiness

Carrying capacity refers to the maximum number of visitors that a destination can accommodate without causing harm to its physical, economic, and sociocultural environment or compromising the quality of visitors’ experiences. To effectively manage carrying capacity, destinations must first understand their specific limits—then actively work to stay within them.

When a destination exceeds its carrying capacity, the negative effects of tourism may begin to outweigh the benefits (Exhibit 2). Shutting down tourism isn’t always feasible or sustainable. Instead, destinations should focus on increasing their carrying capacity to enable more growth. By adopting early-detection mechanisms and attentively managing carrying capacity, destinations can strike a balance between welcoming visitors and preserving natural and cultural assets and quality of life for residents.

In 2017, leveraging the growing availability of data about travelers, McKinsey, in collaboration with the World Travel & Tourism Council, developed a diagnostic tool  to help spot early-warning signals that a destination is under stress from tourism. 1 “ Coping with success: Managing overcrowding in tourism destinations ,” McKinsey, December 14, 2017. This year, we have updated this tool to address the evolving nature of the challenge and the accessibility of more nuanced and precise data (see sidebar “Methodology for assessing destination readiness”).

Methodology for assessing destination readiness

Utilizing information from vendors, publicly available databases, and press searches, we measured airline traffic, accommodation booking activity, and traveler sentiment. 1 Diio Mi; International Air Transport Association; Mabrian Technologies; Oxford Economics; Tripadvisor; UN World Tourism Organization; World Travel & Tourism Council. We also incorporated analysis of data sets obtained from travel-focused groups such as the UN World Tourism Organization and the World Travel & Tourism Council.

Our intent was to identify metrics that indicate the potential effects of concentrated tourism. We examined metrics affecting the following six categories:

• Local economy: measuring the potential risk of dependence on tourism based on the speed of tourism growth over the past five years and tourism’s contribution to direct employment and GDP.
• Local community: measuring the concentration of tourism in city centers based on inbound arrivals, nights stayed, and tourism accommodations per square kilometer.
• Tourist experience: measuring overall tourist sentiment based on reviews of top 20 attractions and guest satisfaction regarding accommodations.
• Infrastructure: measuring potential overloading risks caused by tourism based on the seasonal intensity and geographic concentration of visitor arrivals.
• Nature and the environment: measuring risks to nature based on carbon emissions generated by travel and sustainability commitments pledged by local hotels.
• Culture and heritage: measuring potential threats to cultural sites based on the concentration of visitors at these sites.

Starting with a list of 65 major, representative cities, we’ve separated locations into quintiles indicating levels of potential risk and negative impact stemming from tourism flows (Exhibit 3). While this data is focused on metropolitan areas, the approach can be replicated for all sorts of popular destinations—from beach towns to mountain villages to religious sites.

Destinations can be grouped into the four following archetypes, based on whether they are struggling with visitor flow and whether they have developed tools to manage it:

• Seasonally overloaded destinations pair high visitor concentrations with limited tourist-flow-management capabilities. These cities may have room to expand their visitor management tool kits to enhance the experiences of both locals and tourists. Representative examples include Cancún, Dubrovnik, and Marrakech.
• Increasingly stressed destinations currently receive limited numbers of visitors but exhibit signs of stressed infrastructure resulting from limited tourism flow management. These cities could both boost their visitor numbers and improve their visitor infrastructure. Representative examples include Los Angeles, Manila, and Mumbai.
• Actively managed destinations receive high concentrations of visitors and have developed robust visitor management flows in response. Continuous monitoring and innovation could help these cities continue to adequately manage carrying capacity. Representative examples include Amsterdam, Bangkok, and Dubai.
• Balanced-capacity destinations receive relatively fewer visitors but have already implemented sophisticated tourism-flow-management systems. These cities can focus on boosting their visitor numbers while actively monitoring the impact of this growth. Representative examples include Abu Dhabi, Lima, and Singapore.

Seasonally overloaded: Dubrovnik

Dubrovnik is an intensely seasonal destination, with roughly 20 times more inbound airline seats made available for sale during its peak season (July and August) than during low season (January and February). The density of vacation rentals can reach about 90 postings per square kilometer in summer. The city is a popular stop for Mediterranean cruises, and its small, history-laden center can experience concentrated tourist footfalls when a ship is in port.

Dubrovnik falls in the top quintile of risk in four of our six categories, although it has begun taking significant steps to combat overcrowding. The city recently banned new private-rental permits in its historic Old Town neighborhood to counter rising rent costs for locals, 1 Sanjana Shenoy, “Croatia: Historic city Dubrovnik bans new rental permits to curb overtourism & help locals,” Curly Tales, March 15, 2024. and it’s also reorganizing cruise schedules to better stagger visitor flows.

Increasingly stressed: Mumbai

Mumbai is well positioned to capitalize on booming Indian tourism, but the city could benefit from building out its visitor-management-flow systems. Mumbai has the lowest tourism density relative to its population of all cities in our data set, yet visitors report some of the same concerns seen in more popular tourism hot spots, including long waits for entrance to attractions and a plethora of guides and vendors competing for attention. Road traffic is a major detriment to the visitor experience, with tourists in 2023 experiencing an average travel time of 20 minutes to cover ten kilometers.

The city has ambitious plans to reduce congestion with new metro and highway systems that could benefit both locals and tourists. It might have additional room to increase carrying capacity by addressing current visitor pain points—for example, by installing modernized metal detectors to smooth entry into major attractions or by creating centralized guide booths at attractions to help visitors find licensed guides.

Actively managed: Amsterdam

Given Amsterdam’s small geographic footprint, its extreme concentration of visitors puts significant pressure on local infrastructure—affecting the daily experiences of both tourists and residents. It has tried to actively manage tourism through measures such as its recently announced moratorium on hotel development 1 Charlotte Van Campenhout, “Amsterdam bans new hotels in fight against mass tourism,” Reuters, April 17, 2024. and a ban on public smoking of cannabis in its red-light district. 2 “Amsterdam to ban cannabis outdoors in red-light district,” Reuters, February 10, 2023. It has also used marketing to promote less-well-known areas in an effort to channel some visitors away from the most crowded neighborhoods. Amsterdam uses data gleaned from social media and behavior tracked on its tourist-friendly city card to analyze tourist flows and spot areas under stress.

Balanced capacity: Singapore

Renowned for an automated metro train line, futuristic downtown core, and cutting-edge innovation, Singapore has the infrastructure, resources, and practices in place to grow and support larger tourism flows. It currently ranks 56th out of the 65 cities we analyzed in terms of inbound visits per square kilometer.

Singapore’s limited land mass does tend to concentrate visitor flows at top attractions, which could create threats to cultural sites and negatively affect the experiences of both visitors and locals. Recent development projects have expanded the depth and breadth of tourist offerings, creating new attractions that could help increase the city’s carrying capacity and keep it primed for future growth.

Funding destination readiness

Once the need for destination readiness has been identified, questions turn to funding. Destinations should carefully consider which sources and mechanisms to use to generate the revenue needed to address the impacts of tourism—and ensure that the burdens don’t fall disproportionately.

Devise permit systems for individual attractions

Requiring visitors to obtain a paid permit before viewing an attraction can generate revenue while simultaneously helping to manage capacity. Permitting systems are most effective in places where demand frequently exceeds capacity and, if left unchecked, could risk causing harm to ecologically or culturally sensitive locales. Galapagos National Park in Ecuador, for instance, uses a strict permitting system with entrance fees that are applied directly toward preservation efforts.

A potential downside of permit requirements is the financial barrier for tourists who have less ability to pay. Many destinations have instituted lotteries that govern the opportunity to purchase an affordable permit, though this also reduces the funding generated by this strategy. It’s worth noting that there can be limits to the effectiveness of permitting systems: Mount Everest’s sky-high fees haven’t reduced demand from climbers.

Capitalize on major, one-off events

The city of Vancouver was able to use the planning process for the 2010 Winter Olympic Games as a catalyst to unlock government funding for long-desired infrastructure development—including road and train projects that had been stalled for more than a decade. While there’s risk that any given future mega-event won’t lead to sustained tourism demand, it can lead to lasting infrastructure improvements that benefit locals 2 Nelson Bennett, “Path to 2010 Olympics built from asphalt, steel,” Vancouver Is Awesome , February 11, 2020. for years to come.

Explore public–private partnerships

Destinations can pursue public–private partnerships to accelerate development and spread out risk. Common examples of this approach include cofunded or cobuilt event centers or museums. Exclusive concessions established and granted by destinations can provide revenue-generating opportunities to operators or leaseholders in exchange for financial returns and other commitments, such as pledges to sustainably develop and maintain a location or to support local education, infrastructure, and healthcare.

Ensure proceeds from tourism are invested where they are needed

Cities shouldn’t underestimate the strain on waste, water, and road infrastructure that tourism can create. In places where visitors significantly exceed local populations, tourism tax revenue can be budgeted into core municipal expenses, such as road maintenance and waste management, so that repairing wear and tear caused by visitors doesn’t fall entirely on locals. Tourism taxes and entry fees can be redistributed to local communities or used for preservation or restoration projects.

Managing capacity and mitigating negative impacts from growing tourist flows

After risks and funding sources have been identified, there are several promising strategies that the tourism ecosystem can employ to prepare for growing tourist volumes. They are most effective when coordinated across a broad set of stakeholders, including city governments, destination management organizations, hospitality companies, experience providers, transportation authorities, and airlines:

• Build and equip a tourism-ready workforce.
• Use data to manage and forecast visitor flows.
• Be deliberate about which tourist segments to attract.
• Distribute visitor footfall over space.
• Distribute visitor footfall over time.
• Be prepared for sudden, unexpected fluctuations.
• Preserve cultural and natural heritage.

Build and equip a tourism-ready workforce

Preparing a tourism workforce goes well beyond making sure that staff at a reception desk are polite. Tourism stakeholders should strive to ensure sufficient labor supply by fostering interest in the tourism sector, training entry-level workers in soft skills, and providing ample opportunities for career advancement. Training can be a collaborative effort by the public and private sectors.

Africa’s not-for-profit Female Guide program partners with leading safari providers to sponsor, train, and employ African women who are interested in conducting safari tours. 3 Sandra MacGregor, “I went on a safari in Botswana with a female guide—here’s why it made all the difference,” Travel + Leisure , December 23, 2023. The alcoholic-beverage company Diageo hosts training for hospitality students near Da Nang, a tourism hot spot in Vietnam, covering bar knowledge, teamwork, and customer service skills.

Regulating and credentialing locals who are part of informal tourism economies can help raise service standards and create more positive tourist experiences. For example, Singapore’s efforts to legalize and license street vending resulted in UNESCO recognition of its street hawker culture. 4 “Hawker culture in Singapore,” National Heritage Board, accessed May 2024.

Use data to manage visitor flows

Destinations can build and continuously improve holistic data monitoring and forecasting systems. Data can be gathered from governments (visa tracking), businesses (accommodation bookings and event ticket purchases), social media platforms (user behavior), and other sources. Crowd monitoring tools can provide real-time data about the location of mobile phones to help forecast and manage visitor flows.

Some destinations provide value in exchange for data. For instance, the I amsterdam City Card offers tourists access and discounts to attractions while tracking where the card is used (see sidebar “How Amsterdam handles its tourist flows”).

How Amsterdam handles its tourist flows

Geerte Udo was CEO of Amsterdam & Partners until earlier this year, when she stepped down after 17 years. Amsterdam & Partners is a public–private foundation that focuses, in part, on managing tourism in the Amsterdam metropolitan area. McKinsey spoke with Udo about Amsterdam’s efforts to handle its large tourist flows. The following is an edited version of the conversation.

McKinsey: How does Amsterdam balance the positive aspects of tourism with some of the challenges that hosting large numbers of visitors can create?

Geerte Udo: We’re very lucky in that we have a beautiful city that sells itself. People want to come here. And the visitor economy has a lot of benefits. It creates jobs, it pays taxes, and 30 percent of our public transport is financed by visitors. Our residents love the cultural infrastructure we have here, and we couldn’t support it by ourselves. We love the diversity and quality of our restaurants and bars, which are also supported by visitors. We need our visitors because they raise the quality of life for our residents.

But there are elements of the visitor economy that can harm the quality of life in the city. We’re seeing more and more visitors because the general income of people across the world is rising, and everybody wants to travel. Like other European cities that are old harbor cities with narrow streets, we have moments where we deal with overcrowding. This is mostly in the old city center, on a few narrow streets, at certain days and times. But the public space there isn’t well organized and can’t handle the number of people who want to go there.

Another issue we have is nuisance. Our city has a reputation: if you want to have a party, come to Amsterdam. It can be very annoying for residents in certain neighborhoods when visitors come to party from Thursday through Sunday evening. It makes it hard for people to live there.

There’s also an issue with managing the amount of waste in the city. Because we have more guests, there’s more waste in the street. And there’s a separate issue with private, short-term rental properties, which can sometimes crowd out housing that’s built for residents.

McKinsey: Are you able to gather data and use it to get insights that can help you handle tourist flows?

Geerte Udo: We have a lot of sources of data. At a European level, we share data with 110 European cities to see what the latest traveler trends are. We can learn from one another and understand, for instance, if a trend is only happening in the northern part of Europe or also in the southern part. More locally, we have a national data center that can tell us how many people visit the city, how long they stay, which countries they come from, their ages, and other factual information.

Our organization also does its own research on visitor behavior. For instance, we sell an I amsterdam City Card. It gives visitors free access to public transport, museums, and various attractions. We sell about 150,000 to 200,000 cards a year, and because people need to check in with our card at the locations, we can see their movement patterns. Over time, we’re able to anticipate when and where people will go. For instance, many people visit museums in the morning and then go on a canal boat ride in the afternoon. We can advise first-time visitors to reverse that order because they’re likely to have better, less crowded experiences that way.

But nudging people only works if you can connect to their needs. We wouldn’t tell a first-time visitor to venture out to a neighborhood that’s not well-known—we understand that if they’re here for the first time, they really want to see the highlights. Whereas if you’re here for the third time, and we know what you’ve been doing and a little bit about your preferences, we can guide you to other neighborhoods and areas we think you’ll enjoy.

We know from data that there’s a trend in behavior where, after 2.4 days, people are often ready to explore beyond the city. This number is similar in other cities, as well. After 2.4 days, people start to ask, “Can you show me where I can get some fresh air for a half day?” And we can then offer them guidance on visiting beaches, windmills, and so forth.

McKinsey: What are some mitigation strategies that you’ve tried or considered?

Geerte Udo: One thing we’ve put effort into is branding and marketing concepts. If people come to our city thinking that everything is in the canal district, it’s hard to guide them to other areas. So we’ve tried to build our image into much more than the canal district, expanding interest into other areas that all have different identities and different flavors.

There have been years of discussions about gating certain areas and charging fees to enter them. That might help generate revenue that the city can spend on cleaning streets and improving the subways, which would be beneficial for the tourism industry. But in my opinion, charging fees or raising tourist taxes won’t reduce visitor numbers at all.

We’ve spent a lot of time with city hall looking into the best ways to organize public spaces. For a long time, urban planning didn’t even take visitors into account when thinking about how to arrange public space. To truly manage visitor flows, there needs to be a bigger-picture, integrated approach to how a city is organized.

None of this will reduce the number of travelers because travel is growing so fast. But we can guide visitors to disperse them across time and space, minimize overcrowding, and put less pressure on the old city center. I think guiding and spreading tourism really can work if we manage to match supply and demand.

Comments and opinions expressed by interviewees are their own and do not represent or reflect the opinions, policies, or positions of McKinsey & Company or have its endorsement.

Be deliberate about which tourist segments to attract

Different tourists arrive with different kinds of baggage—literally and metaphorically. Destinations can be strategic in identifying the types of tourism they want to encourage. Some destinations might welcome (and be able to handle) party crowds, while others might be more interested in attracting families or older travelers. Destinations should work to understand the demographics, preferences, and behaviors of their target customers before tailoring offerings and communications that will appeal to them.

Bhutan requires a sustainable development fee of $100 per day from visitors. This requirement serves to limit the number of visitors and their impact on the small nation while simultaneously creating a sense of exclusivity that spurs increased interest from international travelers.

Distribute visitor footfall over space

Nudging tourists to visit less trafficked areas can help ease congestion at the most famous and popular attractions. This can work at a neighborhood level: pop-up experiences and off-the-beaten-path tours hosted by local guides can entice tourists to explore farther afield. It can also work on a wider geographic scale: TikTok’s “destination dupe” trend surfaces less expensive, less crowded locales that offer many of the same experiences as more crowded destinations (for instance, Taipei instead of Seoul).

Marketing campaigns can frame a destination as a place where visitors chart their own paths. The “I amsterdam” campaign, for example, encourages tourists to create their own personalized versions of the city. AI-powered tools can help craft bespoke itineraries based on visitors’ preferences and interests, matching travelers with unexpected neighborhoods, accommodations, and restaurants that will appeal to their individual tastes.

Developing accommodations and attractions in less dense areas by repurposing assets can also help distribute footfall. Istanbul helped facilitate the restoration of a 1930s tobacco factory and warehouse that became a hotel. The Maboneng Precinct in Johannesburg was a run-down cluster of warehouses before being repurposed to create art galleries, restaurants, and retail spaces.

Distribute visitor footfall over time

Seasonal concentration of tourist activities can cause inefficient use of infrastructure and overload destinations’ ecological, social, and cultural systems. Forty-three percent of travelers already choose to travel off-season to avoid overcrowding. 5 “How to travel: a look at sustainable travel habits,” Booking.com, October 3, 2023. Stakeholders can take steps to encourage even more shifting of visits to off-peak periods. Iceland, for instance, has heavily promoted winter visits to see the Northern Lights, drawing on collaboration across the entire tourism ecosystem—from tour operators developing ice cave excursions to airlines promoting reduced winter airfares.

Distributing visitors across hours is another powerful strategy. The Hanauma Bay Nature Preserve in Hawaii has timed reservations, which smooth visitor numbers across the day and enable a better experience for all. The Petra archaeological site in Jordan has taken a different approach: by creating an evening light and sound show, this popular attraction has expanded the breadth of attractive visitation times.

Because domestic travel represents the bulk of trips, governments might be able to help distribute visitors by carefully managing holiday schedules. For example, the French government has split school holidays so that different regions are on break at different times, which helps mitigate overcrowding during ski season.

Be prepared for sudden, unexpected fluctuations

A viral social media post can send travelers flocking to a destination that might not be prepared for the influx. One beautiful block in Brooklyn’s Dumbo neighborhood earned the nickname “selfie street” when visitors—having seen other tourists’ picturesque selfies on social media—flooded it with phones in hand. Footfall data shows that Dumbo saw an 86 percent increase in visits from 2022 to 2023.

In some instances, this type of behavior can cause significant harm. Access to the secluded Burney Falls waterfall in Northern California was shut down this year in part because of trail damage caused by heavy visitor flows. Data shows that interest in this photogenic spot took off on social media during the COVID-19 pandemic, with peak season in 2023 seeing three to four times as many weekly visitors as in 2019.

Destinations should keep tabs on social media activity and cultural trends that pertain to them. They might consider developing playbooks in advance with planned procedures for handling viral surges. Local tourism stakeholders can attempt to anticipate this type of sudden interest and actively channel it in ways that will mitigate negative impacts. It’s important to be mindful that virality can have different levels of staying power—ranging from a brief phenomenon to an enduring trend.

Preserve cultural and natural heritage

Destinations need to weigh considerations of both accessibility and preservation as they manage tourists’ engagement with natural and cultural attractions. One option is to designate culturally or ecologically significant land and then engage locals in finding ways to strike this balance. Legally protecting lands is a long-standing conservation practice, and governments have increasingly turned to Indigenous populations to better understand cultural sensitivities around specific sites. For example, Indigenous Tourism Alberta partners with Indigenous groups to offer tourists authentic experiences—such as fishing, jewelry making, and hiking—while minimizing negative impacts on nature and culture.

Although tourists often prefer to roam freely around natural sites, limiting access—either geographically or temporally—can be critical to preservation. Creating specific pathways (with showcases for educational material along the way) can allow guests to safely and efficiently walk through a site without causing damage or disturbing wildlife habitats. Sometimes a digital substitute can be an effective solution: Digital Giza lets tourists experience a re-creation of the Egyptian tombs without needing to actually enter them.

Sensitive areas can be closed for predetermined time periods to allow for rejuvenation and sustainable development. And naturally seasonal sites can take advantage of off-peak downtime to fully close and refresh attractions. For example, the Inca Trail in Peru shuts for one month every year during the rainy season to allow nature to recuperate from heavy footfall on the trail. Ideally, these downtimes should be established preventatively and communicated to tourists well in advance, but in some instances, they may need to be prescribed on short notice to prevent imminent damage or rectify harm already done.

As global travel continues to grow, it’s crucial for stakeholders in the tourism ecosystem to be ready for the challenges that could arrive alongside increased visitor flows. By understanding the risks and opportunities, implementing funding strategies, and collaborating across sectors, popular destinations can take steps to preserve their cultural, economic, and environmental assets.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Sophia Wang, Steffen Fuchs, Steffen Köpke, Steve Saxon, and Urs Binggeli for their contributions to this article. The authors also wish to thank Mabrian for providing data.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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Air Travel Consumer Report: March 2024 Numbers

WASHINGTON – The U.S. Department of Transportation (DOT) today released its Air Travel Consumer Report (ATCR) on airline operational data compiled for the month of March 2024 for on-time performance, mishandled baggage, mishandled wheelchairs and scooters, and 1st quarter oversales. The ATCR is designed to assist consumers with information on the quality of services provided by airlines. 

For March 2024, 0.9% of flights were cancelled, lower than the 1.3% cancellation rate for March 2023 and the 2.0% cancellation rate for pre-pandemic March 2019.  

DOT expects that airlines will operate flights as scheduled and that when they do not, airlines will provide consumers the services promised when a flight is cancelled or delayed because of an airline issue. After a two-year DOT push to improve the passenger experience, the 10 largest airlines now guarantee meals and free rebooking on the same airline and nine guarantee hotel accommodations. Consumer-friendly information regarding airline commitments to their customers is available on the Department’s Airline Customer Service Dashboard at FlightRights.Gov . DOT also pushed airlines to provide fee-free family seating and rolled out a new family seating dashboard that highlights the airlines that guarantee fee-free family seating, and those of the 10 largest that do not, making it easier for parents to avoid paying junk fees to sit with their children when they fly.

DOT recently announced two final rules that require airlines to provide automatic cash refunds to passengers when owed and protect consumers from costly surprise airline fees . These rules will significantly expand consumer protections in air travel, provide passengers an easier pathway to refunds when owed, and save consumers more than half a billion dollars every year in hidden and surprise junk fees. Provisions of the final rule on airline refunds were fortified through the FAA reauthorization bill that President Biden signed into law on May 16, 2024.

In addition, DOT is improving transportation for individuals with disabilities. In July 2023, DOT finalized a rule which requires airlines to make lavatories on new, single-aisle aircraft more accessible. Then, in February 2024, DOT issued a proposal to address other barriers that Americans who use a wheelchair encounter when it comes to air travel by, among other things, proposing to mandate enhanced training for airline employees and contractors who physically assist passenger with disabilities and handle passengers’ wheelchairs.

Further, when necessary, DOT takes enforcement action against airlines and ticket agents that fail to comply with the Department’s aviation consumer protection requirements. In 2023, DOT issued the largest fines in the history of the consumer protection office. This includes a $140 million penalty against Southwest Airlines for failing passengers during the 2022 holiday meltdown. That penalty, which was in addition to over $600 million DOT already ensured was refunded by Southwest to passengers, requires Southwest to establish a $90 million compensation system for passengers affected by significant delays and cancellations beginning April 30, 2024.  Additionally, DOT has helped return nearly $4 billion in refunds to travelers since the pandemic began.

In April, DOT announced the launch of the bipartisan Airline Passenger Protection Partnership with 18 state attorneys general to investigate airlines and ticket agents and hold them accountable when they violate aviation consumer protection laws. The partnership significantly expands the Department’s oversight capacity by establishing a new fast-track system prioritizing misconduct cases from state attorneys general who uncover unfair or deceptive airline practices. Through the partnership, DOT will provide state attorneys general with access to the federal complaint database and help ensure that airlines cooperate with state investigations.

Flight Operations

The 623,409 flights operated in March 2024 were 102.47% of the 608,387 flights operated in March 2023. Operated flights in March 2024 were up 2.47% year-over-year from the 608,387 flights operated in March 2023 and up 13.46% month-over-month from 549,439 flights operated in February 2024. 

In March 2024, the 10 marketing network carriers reported 628,786 scheduled domestic flights, 5,377 (0.9%) of which were cancelled. In February 2024, airlines scheduled 552,691 domestic flights, 3,252 (0.6%) of which were cancelled. In March 2023, airlines scheduled 616,234 domestic flights, 7,847 (1.3%) of which were cancelled.

March 2024 On-Time Arrival

In March 2024, reporting marketing carriers posted an on-time arrival rate of 78.7%, down from 83.7% in February 2024 and up from 75.4% in March 2023. The year-to-date on-time arrival rate for 2024 is 78.3%.

Highest Marketing Carrier On-Time Arrival Rates March 2024 (ATCR Table 1)

• Hawaiian Airlines – 87.2%
• Delta Air Lines Network – 84.8%
• United Airlines Network – 81.8% 

Lowest Marketing Carrier On-Time Arrival Rates March 2024 (ATCR Table 1)

• Frontier Airlines – 66.4%
• JetBlue Airways – 68.4%
• Spirit Airlines – 69.6%

For the first three months of 2024, the reporting marketing carriers posted an on-time arrival rate of 78.31% up from 76.89% for the same period in 2023.

March 2024 Flight Cancellations

In March 2024, reporting marketing carriers cancelled 0.9% of their scheduled domestic flights, higher than the rate of 0.6% in February 2024 and lower than the rate of 1.3% in March 2023. The year-to-date cancellation rate for 2024 is 1.7%.

Lowest Marketing Carrier Rates of Cancelled Flights March 2024 (ATCR Table 6)

• Delta Air Lines Network – 0.2%  
• Hawaiian Airlines – 0.6%   
• Allegiant Air – 0.6%    

  Highest Marketing Carrier Rates of Cancelled Flights March 2024 (ATCR Table 6)

• Frontier Airlines – 2.7%    
• Spirit Airlines – 1.7%    
• JetBlue Airways – 1.4%    

For the first three months of 2024, the reporting marketing carriers posted a cancellation rate of 1.7%, equal to 1.7% for the same period in 2023.

Complaints About Airline Service

The release of air travel service complaint data in the Air Travel Consumer Report (ATCR) has been delayed primarily because of the continued high volume of complaints against airlines and ticket agents received by the Office of Aviation Consumer Protection (OACP) and the time needed to review and process these consumer complaints. The Department is investing in modernizing its system for handling consumer complaints with the support of a Technology Modernization Fund (TMF) investment to improve the customer experience for the tens of thousands of consumers who use the system each year and enable OACP to more effectively engage in oversight of the airline industry. 

As DOT modernizes its system, given the continued high volume of air travel service complaints concerning airlines and ticket agents, DOT has revised how it processes consumer complaints received after June 1, 2023. From June 2023 until the date its system is modernized, DOT intends to revise the ATCR to display consumer submissions (complaints, inquiries, and opinions) as opposed to complaints for this period. The Department will continue to display civil rights complaints in the ATCR in a similar manner as before and anticipates publishing submission and civil rights complaint numbers for June 1, 2023 to December 31, 2023 in June 2024.

Tarmac Delays

In March 2024, airlines reported six tarmac delays of more than three hours on domestic flights, compared to 10 tarmac delays of more than three hours on domestic flights reported in February 2024. In March 2024, airlines reported one tarmac delay of more than four hours on an international flight, compared to two tarmac delays of more than four hours on international flights reported in February 2024. 

Airlines are required to have and adhere to assurances that they will not allow aircraft to remain on the tarmac for more than three hours for domestic flights and four hours for international flights without providing passengers the option to deplane, subject to exceptions related to safety, security, and Air Traffic Control related reasons. An exception also exists for departure delays if the airline begins to return the aircraft to a suitable disembarkation point to deplane passengers by those times.

The Department investigates extended tarmac delays.

Mishandled Baggage

In March 2024, reporting marketing carriers handled 43.1 million bags and posted a mishandled baggage rate of 0.52%, higher than the rate of 0.48% in February 2024, but lower than the rate of 0.58% in March 2023.

For the first quarter of 2024, the carriers posted a mishandled baggage rate of 0.58%, lower than the first quarter 2023 rate of 0.64%.

The Department began displaying the mishandled baggage data as a percentage (i.e., per 100 bags enplaned) in January 2022. This is consistent with the manner that the mishandled wheelchairs and scooters rate is calculated and displayed.     In the prior three calendar year reports (2019 to 2021), the Department calculated the mishandled baggage rate based on the number of mishandled bags per 1,000 checked bags. 

Mishandled Wheelchairs and Scooters

In March 2024, reporting marketing carriers reported checking 65,793 wheelchairs and scooters and mishandling 859 for a rate of 1.31% mishandled wheelchairs and scooters, higher than the rate of 1.30% mishandled in February 2024 and lower than the rate of 1.33% mishandled in March 2023.

For the first quarter of 2024, the carriers posted a mishandled wheelchair and scooter rate of 1.36%, lower than the rate of 1.40% in the first quarter of 2023.

To address many of the significant barriers and challenges experienced by passengers who use wheelchairs, the Department has proposed a rulemaking that, if adopted as proposed would make it an automatic violation of the Department’s Air Carrier Access Act regulations for airlines to mishandle a passenger’s wheelchair. This Notice of Proposed Rulemaking would also enhance training requirements for airline personnel who provide hands-on transfer assistance to passengers and handle wheelchairs. The proposal is available at https://www.regulations.gov , docket number DOT-OST-2022-0144.

Bumping/Oversales

Bumping/oversales data, unlike other air carrier data, are reported quarterly rather than monthly. For the first quarter of 2024, the 10 U.S. reporting marketing carriers posted an involuntary denied boarding, or bumping, rate of 0.27 per 10,000 passengers, lower than both the rate of 0.29 in the first quarter of 2023 and higher than the rate of 0.20 in the fourth quarter of 2023.

Incidents Involving Animals

As part of its IT modernization, DOT’s Office of Aviation Consumer Protection (OACP) is improving the options for covered carriers to submit their monthly and annual Reports on Incidents Involving Animals During Air Transport. While the new system is being developed, OACP is permitting covered carriers to delay submission of reports on incidents involving animals during air transport. Annual data on such incidents will be published when DOT receives carriers’ complete submissions of the 2023 data. 

In March 2024, carriers reported zero incidents involving the death, injury, or loss of an animal while traveling by air, down from the two reports filed in February 2024, and equal to the zero reports filed in March 2023.

Consumers may file air travel consumer or civil rights complaints online at   https://secure.dot.gov/air-travel-complaint , or they may mail a complaint to the Office of Aviation Consumer Protection, U.S. Department of Transportation, C-70, W96-432, 1200 New Jersey Avenue, SE, Washington, DC 20590.

The ATCR and other aviation consumer matters of interest to the public can be found at https://www.transportation.gov/airconsumer .

Expedia Group Media Solutions

How to attract travelers with data-driven tourism marketing.

By Expedia Group Media Solutions

June 5, 2024

Did you know that 60% of travelers start planning their trip without a specific destination in mind? 1 Data like this can change how and when you communicate with travelers. By understanding travelers’ buying journeys from looking to booking and the latest travel trends, destination marketers can attract travelers and even shape destination decisions. 

Travel data and trends can help you understand and appeal to your target audience better. The ability to attract travelers could get more complicated as third-party cookies are phased out, which is why leveraging our robust first-party data can provide the audience insights you need. Keep reading to learn how data in the Path to Purchase report and our Unpack ’24 travel trends study can give you the competitive advantage you need to create data-driven destination marketing campaigns that resonate with travelers.  

Travel marketing along the path to purchase

As a destination marketer, you can use Path to Purchase insights to inform your strategy and get your message across clearly to your intended audience in the fragmented travel and tourism industry.   

Destination indecisiveness is high

Nearly three in five travelers surveyed didn’t have a specific destination in mind or considered multiple destinations when they first decided to take a trip. More than 80% of travelers from Mexico and 62% of travelers from the U.K. were undecided on their destination, indicating that these travelers may be even more open to destination inspiration. 2   

What this means for destinations

Location indecisiveness in the early stage of travel planning creates opportunities for destination marketers to determine destination decisions. Targeting travelers while they’re still in the inspiration phase is the key to building awareness for your brand and showing what makes your destination unlike any other. 

To appeal to travelers’ wanderlust and keeping costs in mind in this phase and throughout the purchasing journey, travel advertisers should consider showing breathtaking locations and interesting experiences along with compelling deals and clear calls to action to drive travelers to conversion. It’s also important to know how long people spend looking for vacation inspiration, so you know when to launch your campaign to attract more visitors.  

Travelers spend 33 days looking for inspiration for travel destinations  

We know that advertisers want to have a clear view of travelers’ buying journeys and the potential touch points they can have with travelers. That first moment, when travelers look for inspiration, is a key opportunity to influence travelers’ choices, and the window to reach people is 33 days long on average. 3  

Your current strategy might be to advertise to an audience that already showed an interest in your location, but the data is clear that there’s a large opportunity to create impactful ads that drive those looking for inspiration to consider new destinations — including yours. 

It’s also important to note that two-thirds of travelers were influenced by an ad during the inspiration phase of their journey. 4  

What this means for destinations:

Inspiration can come from many sources, like family recommendations or advertisements, so destinations need to ensure that they have a multi-channel approach to appeal to travelers during this stage. All our solutions help get your destination in front of our motivated travel audience.  

If you’re looking to take your budget further, you could consider a co-op campaign . These campaigns are cost-effective and help marketers meet collective goals, and we do the heavy lifting to connect complementary destinations, hotels, airlines, and more to engage jointly with travelers and drive demand. 

When it comes to connecting with travelers across channels, destination marketing organizations (DMOs) see over 80% higher engagement with our native display ads compared to standard display ads. 5 Our native advertising solution uses contextually relevant, non-disruptive ads seamlessly integrated across our 200+ travel websites and apps. These experiential ads allow you to highlight multiple features and images with a single placement and create a pleasing experience for travelers when they’re looking for inspiration or ready to book.   

VisitScotland used native advertising to engage travelers with immersive and informative ad placements across prominent homepages and hotel search results pages. By implementing native advertising, the marketing campaign generated an above average click-through rate (CTR) and an 80:1 return on ad spend (ROAS). The campaign’s success elevated the visibility of VisitScotland and effectively engaged qualified travelers, resulting in increased bookings. 

You can also leverage in-app ads as part of our native advertising solution to gain a competitive advantage. Did you know that on average, in-app ads drive 150% more conversions than mobile web ads? 6 This is one more lever you can pull to execute a successful marketing strategy.  

Travelers use social media the most for inspiration 

Social media is where people seek authentic travel experiences and reviews when considering hotels, activities, or destinations. For travelers considering what to book, 65% of them use social media for inspiration. 7  

For those in destination marketing, tapping into social media as part of your mobile marketing strategy is an effective way to get travelers to consider your destination. You could add a human touch to your mobile marketing campaigns by utilizing influencer marketing at this stage. If you’re working for a convention and visitors bureau, you can engage travelers on social media by highlighting what they could expect if they choose your destination by using captivating images and copy that highlight authentic experiences.  

Discover the latest travel marketing trends 

Let’s look at a few more trends that can help you learn how to promote a destination by implementing specific insights into travelers’ behaviors in your campaigns. Our Unpack ’24 study is a glimpse into eight predicted trends we see shaping the travel and tourism industry this year. Based on extensive data and a global survey of 20,000 travelers, the report highlights the growing popularity of alternatives to well-known vacation spots, traveling to see a concert, and booking a trip because of a movie or TV show. You can find more trends in the full study, and you can dive even deeper with our quarterly insights and research .

We’ve pulled trend takeaways to help shape your marketing campaigns and get your destination in front of our global audience of high-value travelers who are coming to dream about, research, and book travel on our trusted brands.   

Travelers are booking destination dupes 

Destination dupes are budget-friendly alternatives to popular travel spots that offer similar experiences, usually without the hefty price tag or crowds. Think of it as the travel equivalent of finding a high-quality, affordable alternative to a luxury brand. For example, travelers might choose Pattaya over Bangkok or Perth instead of Sydney to enjoy a comparable vibe and attractions at a fraction of the cost. One in three travelers polled said they’ve booked a destination dupe. 8  

What this means for destinations  

If you think your location could be a dupe, it’s time to position yourself as an alternative. You know what your destination has to offer, and we can help you tell that story to potential travelers. Does it have something in common with a higher-profile location? Try turning that into an advantage and highlight the elements your destination has in common with more well-known places. To take it a step further, you could showcase promotions or deals in your advertising that could appeal to cost-conscious travelers. 

Concerts are driving tourism 

Tour tourism is a popular emerging area of leisure travel. This trend sees concertgoers looking beyond their local venues to catch a show, with 40% of travelers saying they would travel for a concert as an excuse to visit a new place, while 30% would travel because tickets were cheaper elsewhere. 9  

When Taylor Swift’s 2024 tour schedule was announced for Asia and Australia, travel searches increased by over 250% year over year for the corresponding tour cities. Similarly, when the 2024 European tour dates were announced, travel searches for May to August 2024 increased by nearly 65% for cities with corresponding tour stops. 10 To reach travelers venturing out of town for a concert, you could target certain search windows, lean into influencer marketing, or create packages with local establishments to provide more value for potential attendees.  

Our data-driven audience extension solution can help you reach customized audience segments, like those traveling during a certain time, to make sure your destination is in front of the right people, at the right time, and with the right message using targeted marketing. 

Set-jetting could be your untapped travel marketing trend

Set-jetting, planning trips inspired by TV shows and movies, is more popular than ever. More than half of travelers say they’ve researched or booked a trip to a destination after seeing it on a TV show or in a movie. In fact, travelers say TV shows influence their travel decisions more than Instagram, TikTok, and podcasts. 11  

You can lean into this source of travel inspiration where people want to book because they were inspired by a particular location. We helped one of our partners, Brand USA , create an immersive and interactive experience and debuted this innovative approach to travel booking with a shoppable streaming platform that delivers unique video content to replicate what travelers would experience at a destination. 

Our Media Studio team concepted and built this unique approach to destination exploration that allows travelers to quickly and easily book their trip as they immerse themselves in what the destination has to offer. Brand USA is the first partner to use this trailblazing solution, and we’re excited to roll out this approach for other destinations across the globe. 

Reach your goals with the leading travel media network  

We know it can be difficult to act on emerging market trends. That’s why we’re here to help you understand consumer behavior and travel trends to ensure your destination stands out from the rest using our expertise, innovative technology, and powerful platform. All our advertising solutions focus on helping DMOs stand out in a crowded marketplace and drive tourism, and we can help you find the perfect combination for your specific needs.  

To learn more about the array of advertising solutions we provide and how your destination can leverage data, contact one of our experts today. 

Expedia Group Media Solutions is the world's leading travel media network. We connect advertisers with hundreds of millions of travelers across the globe. Our exclusive first-party data on traveler trends, search behavior, and booking data provides travel marketers with unique insights to inform their strategies. We offer a full-funnel suite of solutions to help you convert travelers, and our digital experts can help you create advertising campaigns that deliver.

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