There are promising signs in consumer spending across the travel and entertainment sectors
According to Mastercard’s report, Italy, Russia, and France are leading in terms of the recovery of travel and entertainment spending across the G20.
Earlier this year, Italy was a focus of the pandemic. Nevertheless, the country’s restaurant culture and domestic tourism sector have helped it to bounce back faster than other markets, including the US, Brazil, and India.
The study also highlights the shift to a smaller retail radius as consumers travel and spend closer to home.
As of Q2 2020, auto rental’s share of total transportation spending nearly doubled from 9% in 2019 to 17%. In Switzerland and Germany, for example, non-air travel made up roughly 3/4 of travel spending by August 7.
This tendency to travel closer to home has also driven the trajectory of rentals of micro-mobility solutions in the US, where they surpassed 2019 levels at the end of July.
We’ve reported that small business owners are increasingly pessimistic about the coronavirus shows the need for continued economic stimulus measures,