Despite rising prices, Americans are still prioritizing their travel plans, with 48% planning to travel and stay in accommodations, the same as last year. However, the overall number of vacation trips may decrease this summer due to the increased cost of vacations. These were the findings of a recent Deloitte survey of U.S. traveler trends and preferences in the summer of 2024.
With rising costs, travel budgets are ballooning, with 20% of respondents saying they will spend significantly more on travel this year compared to last year.
Air travel is gaining traction both domestically and internationally, with 52% of Americans planning air travel within the United States and 22% planning international travel this summer.
The demographic profile of summer travelers is evolving, with a notable increase in higher-income and older travelers, significantly impacting travel budgets.
The trend of workplace flexibility and remote working is further shaping travel behaviors, with 21% of U.S. travelers planning to work during their longest trip this summer.
The perception of rising costs and economic challenges are prompting some Americans to rethink their travel strategies. While economic pressures are deterring some, those who decide to travel are determined to make the most of their experiences, according to a new Deloitte report, “Vacations Pass the Value Test: 2024 Deloitte Summer Travel Survey.”
Holidays a priority despite the financial pressure
While economic factors may lead some to reconsider the number and length of their holidays, a significant number of people remain committed to travel this summer. Many are rethinking what travel means to them, prioritising relaxation and reconnection and seeking to maximise the value of their experiences.
Survey results show that 60% of Americans plan to travel this summer, although the percentage planning to stay in paid accommodations has dropped slightly to 48% from 50% in 2023.
Americans plan to travel as they did in 2022, taking an average of 2.3 trips this summer up from 3.1 trips last year.
Meanwhile, nearly one in five (19%) say they will spend significantly more on travel in 2024, largely due to rising costs and more ambitious travel plans.
The increase in travel spending is driven by higher income travellers, which increase the average budget for longer trips by 18%.
Households with incomes over $100K, which made up 35% of travelers in the summer of 2023, now account for 44%.
Travel budgets are increasingly influenced by overall financial strength, with those who saw an improvement in their financial situation in the past year planning to spend $528 more than average on their longest trip.
However, economic reasons are forcing some to reconsider travel. A third (32%) of those choosing not to travel cite current travel costs as a reason, an increase on last year.
Meanwhile, relaxation (53%) and romance (35%) are now the most important motivators for travel, along with trips planned to attend a specific event, reflecting a change in the way travel is viewed.
Many Americans plan to participate in experiences such as adventures or outdoor activities (49%), visiting major attractions (48%) or sightseeing (34%). Interest in ticketed events such as festivals or concerts is also on the rise, with 3 in 10 (28%) expressing this preference.
In terms of accommodation, while hotels continue to dominate, there is a notable shift towards alternative accommodation options, with 63% of travellers staying in accommodation choosing a hotel only on their longest trip, down 10% compared to 2023.
Meanwhile, more are choosing alternative accommodations, with 23% of U.S. travelers planning to stay in a rental.
New tools for holiday planning
Americans are using new tools to discover deals as they plan their summer getaways.
While more say they plan to book their accommodations directly, the intent to book through online travel agencies (OTAs) is increasing (20% vs. 16% in 2023), especially among younger, higher-income travelers.
Younger travelers (44% of Gen Z and a third of Millennials) are turning to short-form videos to find activities to fill their vacation schedule. Of those, Millennials are most likely to do so to find restaurants (61%).
The use of GenAI in travel planning has slowed, with one in 10 planning to use GenAI in travel planning, compared to 8% in 2023.
Happiness and… work
The flexibility of remote working, perhaps the most enduring impact of the travel industry pandemic, continues to show its footprint as more and more “laptop luggers” plan to work during their summer travel.
One in five travellers (21%) plan to work on their longest trip this summer, a slight increase on last year, but more say they will work throughout their trip rather than just part of it.
Laptop enthusiasts continue to extend their travel plans due to the flexibility to work remotely and will extend their seasonal trip by nine days and their longer trip by four days.
Those who plan to work during their trips are also more likely to have a higher budget than those who will not work ($4,157 vs. $3,259).
