Despite a 36% increase in travel costs over the past year, from $5,907 in 2023 to $8,056 in 2024, Americans remain undeterred in their pursuit of overseas adventures.
Squaremouth, a United States travel insurance company responsible for insuring more than three million travelers, finds the cost of a vacation has not deterred Americans from making a trip overseas. They analyzed thousands of travel insurance policies to reveal the top spending trends of 2024.
Italy: A Perennial Favorite
Italy has emerged as the top destination for American travelers, surpassing domestic trips within the U.S. Approximately 12.1% chose Italy this fall, up nearly 4% from last year.
The average cost for an Italian getaway stands at $8,029, reflecting the high demand for experiences in cities like Rome, Florence, Venice, and the picturesque countryside of Tuscany.
Florence woos travelers with its stunning Renaissance contributions from legendary artists like Leonardo DaVinci. Venice, known as “The Floating City,” spans 118 small islands separated by 400 bridges and canals.
Italy’s renowned culinary traditions, including pasta, wine, and gelato, also contribute to its popularity among tourists. Italy boasts 60 properties on the UNESCO World Heritage List, more than any other country.
United States: Domestic Appeal Remains Strong
While Italy takes the top spot, the United States remains a close second, with 10.43% of travelers opting for domestic trips. The average cost for travel within the U.S. is $4,098 — significantly lower than many of the list’s international destinations.
New York City, celebrated for its bustling streets and vibrant energy, takes the top U.S. destination distinction in Tripadvisor’s 2024 Travelers’ Choice Awards. Oahu, Hawaii, a surfer’s paradise, claims second place. Las Vegas, New Orleans, and Miami Beach round out the top five, securing the third, fourth, and fifth spots, respectively.
In 2022, Americans took nearly 2 billion domestic leisure trips, totaling $837 billion. This consumer spending helped support nearly 15 million American jobs.
Americans recognize the economic benefits of travel for their local communities. More than 68% agree it supports local businesses and jobs, and 62% believe that travelers’ paid taxes are crucial for funding essential public services.
Mexico: An Accessible Escape
Mexico remains a favorite for American travelers, ranking third with 5.71% of travelers.
The country’s proximity, rich culture, beautiful beaches, and affordable prices make it an attractive destination. The average trip cost to Mexico is $3,526, making it one of the more budget-friendly options.
In 2022, Cancun, Mexico City, and Los Cabos airports welcomed more international visitors than any other Mexican locale. These destinations blend relaxation and adventure, catering to all travelers, from families to solo explorers.
Great Britain, Spain, and France: European Charms
Great Britain, Spain, and France round out the top five most popular destinations, respectively. Each city uniquely appeals to American travelers.
In 2023, North American citizens made 3 million visits to Great Britain — comprising England, Scotland, and Wales — out of a total of 6.1 million visits. The average cost of a fall trip to the region is $5,939.
The average trip to Spain, known for its vibrant festivals, sunny beaches, and siestas, costs $6,778.
France, the epitome of romance and sophistication, has been the world’s leading travel destination for more than 30 years. Travelers spend an average of $7,176 per trip.
Greece and Japan: High-End Destinations
Comparatively, Greece and Japan are costlier destinations.
Greece, with its idyllic islands, ancient ruins, and Mediterranean charm, attracts travelers despite its higher average trip cost of $8,595. This positions Greece in eighth place, just behind Canada.
Japan, ninth in popularity, stands out for having the highest average trip cost at $9,004. The capital, Tokyo, and the populous city of Osaka were 2023’s top tourist destinations.
Adjacent to Tokyo, Chiba Prefecture is home to Japan’s two Disney parks, Tokyo Disneyland and DisneySea. Japan continues to fascinate American travelers, even at a premium price.
Portugal: A Rising Star
Portugal makes its debut in the top 10 this fall, capturing the attention of American travelers.
With an average trip cost of $7,134, Portugal offers a mix of vibrant cities, like Lisbon, Porto, and the scenic Algarve region.
In 2023, Portugal experienced its most successful year in tourism, attracting more than 30 million visitors worldwide and generating nearly $28 billion in revenue.
Portugal is paving the way for another record year, with a 7.5% increase in tourists between January and June.
Portugal’s combination of a welcoming culture, excellent health care system, and warm Mediterranean climate has made it an expat hot spot and an increasingly popular choice for those seeking a new European adventure.
