Stats: Summer Travel Stays the Course Amid Pricing Pressures

According to Deloitte’s 2024 summer travel report, many Americans are staying the course with their summer travel plans. Amid rising prices, Americans still value their travel plans, as 48 percent of those surveyed plan to travel and stay in paid lodging, on par with last year, but take fewer vacations overall this summer. The “Vacations Pass the Value Test: 2024 Deloitte Summer Travel Survey” examines the trends and preferences that could shape the upcoming summer travel season.

The survey was conducted among 4,022 Americans between March 20 and April 2, 2024. Of these, 2,348 qualified as travelers, and a smaller subset of 1,936 travelers who said they would stay in paid lodging, rather than only with family or friends, completed the longest version of the survey.

Survey results show that six in 10 Americans surveyed plan to travel this summer and 48 percent plan to stay in paid lodging (down from 50 percent in 2023). They plan to travel like it’s 2022, with an average of 2.3 trips this summer, down from 3.1 trips in 2023 but on par with 2022. Nearly one in five (19 percent) say they will spend significantly more on their 2024 travels. This is mainly due to rising prices and more ambitious travel plans.

The rise in higher income travelers has increased budget for travelers’ longest trips by 18 percent. Households with income over $100k represented 35 percent of travelers in summer 2023; in 2024, they represent 44 percent. Travelers who feel their finances have improved in the last year will spend $528 more than the average traveler on their longest trip, compared to those who feel it has worsened, who will spend $855 less. Two-thirds of Boomers are traveling this summer but are planning to spend more conservatively on their longest trip, primarily to allow for more trips throughout the year.

The survey also shows that one-third (32 percent) of non-travelers are planning to stay home due to the current costs of travel, up eight percentage points from 2023. Rest (53 percent) and romance (35 percent) surge as travel motivators, while travel planned for a specific event is also up five percentage points year-over-year.

Similar to last year, many travelers plan to engage in in-destination travel experiences, such as an adventure or outdoor activity (49 percent), visiting a major attraction (48 percent) or taking a guided tour (34 percent). Interest in ticketed events like festivals or concerts also continues to climb, as nearly three in 10 (28 percent) say they will do so.

Travelers are willing to pay for an enhanced vacation experience this summer, but are considering alternative lodging and transportation, as well as new travel locations, to stretch their budgets. Non-hotel lodging may see a bump in demand, while international travel intent remains consistent, though the destination mix is shifting.

Hotels still account for a majority share of summer travel bookings but are down. Sixty-three percent of paid lodging travelers are only staying at hotels on their marquee trip, down 10 percentage points from 2023. At the same time, more travelers are exploring alternative lodging: 23 percent plan to stay in private rentals, and those planning to stay in other places such as bed and breakfasts (B&Bs) or recreational vehicles (RVs) are up 8 percent from 2023 to 14 percent.

On the transportation front, six in 10 of the paid lodging travelers who are flying will take a domestic flight (62 percent) for their marquee trip, and 38 percent will take an international flight. After a rush to Europe last year, international travelers are diversifying destinations for their longest trip of the season. Intent to travel to Asia has seen the greatest leap, up three percentage points from 2023.

Forty-three percent of air travelers are willing to pay for more comfortable flight experiences (such as upgraded seats), up from 39 percent in 2023. More Americans plan to hit the road for their marquee trips this year (66 percent compared to 56 percent in 2023) with nearly half driving to save money and 42 percent saying it is because they are traveling to a closer destination.

Americans are leveraging new tools to uncover deals as they plan their summer excursions. While more say they plan to book their lodging direct, intent to book through online travel agencies (OTAs) is up (20 percent versus 16 percent in 2023), driven largely by younger, higher income travelers. Only one-third (35 percent) of this year’s summer trips were fully booked as of March. Younger travelers (44 percent of Gen Z and one-third Millennials) are leaning into short video to find activities to fill their vacation itineraries. Of them, Millennials are more likely to do so to find restaurants (61 percent). The use of GenAI in travel planning has slowed, with minimal gains. One in 10 plan to use GenAI in trip planning (compared to 8 percent during the 2023 holiday season).

The flexibility of remote work, perhaps the pandemic’s most lasting impact on the travel industry, continues to show its impact as more “laptop luggers” plan to work more often during their summer trips.

One in five (21 percent) travelers plan to work on their longest trip this summer, up slightly from last year—but more say they will work throughout the entire trip rather than just part of it. Laptop luggers continue to extend their travel plans due to the flexibility to work remotely. They expect to extend their seasonal travel by nine days and their longest trip by four days. Those who plan to work on their trips are also more likely to have higher budgets than “disconnectors” ($4,157 compared to $3,259). Laptop luggers consider several key elements when making travel plans: availability of stable internet, good food near their accommodations, and refundable activity bookings.

Source: Deloitte

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