National Travels: Summer Overview Survey

National travels this summer will stay strong despite looming threats from inflation, debt limit defaults and all manner of chaos predicted at airports, according to new travel surveys.  

Generali Global Assistance unveiled the findings from some 1000 U.S. respondents to the 2023 Holiday Barometer – an annual poll sponsored by parent company, Europ Assistance, and conducted by the consumer research firm Ipsos. The survey was conducted between March 20 and April 7, 2023 in 15 countries.  

 

 

Based on the survey of 1000 residents of each country, data predicts national travels this summer travel may be close to returning to pre-pandemic levels. Of the U.S. travelers surveyed, 63% say they intend to travel this summer – a 3% increase over last year. Interestingly summer travelers are waiting longer to book national travels as well as international travels,  likely in an attempt to keep their summer travel options open, as only 39%  planning to travel saying they’ve booked their trips.  

“With each passing summer we see a return to normalcy in the summer travel season with 75% of Americans surveyed saying they were excited to travel this year. A decrease in early bookings according to findings shows signs of a growing trend of travelers looking for flexibility by waiting to book closer to their travel date. While budgets for US travelers increased by 6% over 2022, the number of respondents who indicated their reason for not traveling was due to either being unable to afford a summer trip or because they wanted to save money increased by 6% and 4% over 2022, which is unsurprising given rising inflation,”  said Chris Carnicelli, CEO of Generali Global Assistance.

National Travel Plans 

-63% of U.S. respondents are planning to travel during the months of June through September, coinciding with the North American summer vacation season. 

-Travel budgets are on the rise amongst Americans with those surveyed planning to spend $3,013 this year – a 6% increase from last year.  

-61% of respondents who plan on a summer trip had not booked it yet at the time of the survey and when asked how they plan to adapt their travel plans due to inflation, 66% of Americans said they might look for last-minute special deals.  

-When asked where they planned to go on a trip this summer 37 % of U.S. travelers opted for a domestic trip over going abroad (33% of U.S. respondents).  

-While vacationers from the U.S. are still picking city vacations (45%) over trips to the beach (42%) the number of Americans who indicated they would take a tour-style trip (30%) saw an 11% increase year over year.  

National Travels: Key Concerns 

-Inflation is the main concern for travelers in all countries, far above other reasons, with it being a top concern among 61% of U.S. travelers.  

-Even before the recent announcement from the WHO declaring the end of the pandemic, COVID-19 was at the bottom of the list, with it only being a concern to 34% of Americans looking at national travels this summer. 

-When looking at what things people would avoid when traveling, cruises and crowded places saw notable decreases as compared to last year likely a sign of a return to pre COVID-19 baselines with 6% of U.S. respondents saying they would no longer avoid going on a cruise. 

Summer Vacation Plans: Deloite Survey

Meanwhile, according to data collected by the industry consulting team at Deloitte, national travels and intent remain strong as 50% of Americans surveyed here plan to travel and stay in paid lodging this summer, up from 46% last year.

Air travel takes off: More than half (51%) of national leisure travelers plan to fly this summer, and 22% of flyers will do so internationally, up from 14% last year.

However, the survey found that financial concerns persist as half of Americans who are not traveling (50%) say they will stay home because they can’t afford to travel. The average spend for a marquee trip declined. According to Deloitte, surveyed travelers expect to spend $2,930 this year, compared to $3,320 in 2022 on their longest national travels this summer. Potential drivers for this downtrend include an expanding pool of national travelers, total spend spread across more trips, and financial concerns.

Among those who plan to spend more than in 2022, nearly 3 in 10 say they are making up for missed travel (28%) or taking a bucket list trip (32%).

And, as flexible work arrangements continue, 1 in 5 travelers plan to work during their longest trip. These laptop luggers also plan to take more trips, albeit shorter ones, during the summer months.

Other Key Findings on National Travels and Intent

+ Half of Americans surveyed (50%) plan to travel and stay in paid lodging this summer, up from 46% in 2022 and 41% in 2021, demonstrating ongoing optimism for leisure travel.

+ Travelers are planning to take an average of three trips this summer, up from two trips in 2022. This may be one reason that marquee trips are getting shorter: 38% of travelers say their longest trip will last a week or more this summer, down from 68% in 2022.

+ Travelers will take 61% of their marquee trips by July, however roads and skies may be busy all season as nearly half (48%) of all summer travel is slated for August or September.

+ Americans surveyed are slightly further along than they were last year in booking their marquee trips: 36% completely booked their longest trip as of March 2023, compared to 33% who did the same in 2022.

+ Built-up pandemic demand still seems to shape 2023 summer travel: 1 in 5 say they’re taking trips to make up for getaways lost during the pandemic.

+ Cities (37%) are ahead of beaches (34%) as the top destination for domestic flyers, followed by the great outdoors (10%).

+ While most travelers surveyed (64%) believe climate change is an emergency, climate change sentiment shows little impact on summer travel behavior, including the planned number of trips, distance and budgets.

+ Overall, more travelers plan to fly for their marquee trip than last year (51% in 2023, versus 46% in 2022).

+ More than one-third (37%) of air travelers will fly to international destinations, up 10 percentage points from 2022. Significantly more are venturing to Europe (57%, up eight percentage points from 2022), compared to closer international destinations like Mexico and the Caribbean (21%, down seven percentage points). 

+ The number of travelers willing to pay for a more comfortable flight experience, including first or business class or other upgrades, is down (39% in 2023, versus 54% in 2022).

+ While price, deals and discounts are paramount for domestic travelers (71%), choosing an airline does not seem to be all about finding the lowest fare. Half of international flyers cite factors like customer service (55%) and loyalty programs (50%) as very important in their airline selection.

+ With the rise in air travel, fewer Americans surveyed will hit the road this summer: 53% will take at least one road trip (at least 100 miles from home), down from 64% in 2022. Nearly half (46%) will drive their own vehicle, and 13% plan to drive a rental vehicle.

+ Three in 4 travelers (73%) plan to only stay in hotels during their longest summer trip, while 13% plan to only stay in private rentals; 8% intend to mix these accommodation types during the trip. More than half (51%) of travelers overall expect to stay in full-service hotels.

+ Slightly more travelers are opting for limited-service hotels compared to last summer (26% in 2023, versus 23% in 2022), while booking intentions for more expensive destination resorts fell (15% in 2023, versus 19% in 2022). 

“Despite rising travel prices, some Americans seem to be making room in their budgets — and suitcases — to discover new places, visit with family and friends, and simply relax away from home. With travel sentiment higher than it’s been in years, air travel continues to soar, driven by the excitement of international travel. However, with travelers planning more trips this summer, they’re being cost conscious and making those marquee trips less extensive. This could signal a call to travel providers to pack both quality and value into their offerings.,” noted Mike Daher, a vice chair at Deloitte. 

Indeed financial worries continue to keep some Americans grounded for the time being. While health concerns kept many from traveling during the pandemic, the possibility of disruption in the form of delayed or cancelled flights was also cited by some 6% of non-travelers (down from 18% over the winter holidays). Instead, national travels this summer may be affected by the roughly 40% of Americans surveyed who feel financially worse-off compared to a year ago, (according to the “Deloitte Global State of the Consumer Tracker”). 

₊ Financial concerns remain high as half of non-travelers (50%) cite affordability as a reason they will stay home.

₊ Budgets for marquee national travels this summer are on the decline as travelers plan to spend $2,930 on their longest summer trip, down from $3,320 in 2022 and $3,440 in 2021. This trend has a few likely drivers: travelers spreading their spend across more trips; a larger traveler pool including more typical spenders, as opposed to a smaller pool in 2022 that may have over-indexed on avid travelers and high spenders; and less financial confidence due to prolonged inflation and depletion of savings.

₊ Roughly 1 in 4 summer travelers (24%) feel their finances took a turn for the worse over the past year, however, they are making efforts to protect their marquee getaways.

₊ Among those who plan to spend less compared to 2022, 59% cite financial concerns. Among those who plan to spend more, 4 in 10 attribute the increase to higher travel prices.

₊ Workplace flexibility continues to drive travel

₊ Approximately 1 in 5 (19%) summer travelers plan to work, at least partially, on their marquee trip.

₊ Mixing work and travel is more prevalent among younger and wealthier travelers: Half of 18-to-34-year-olds plan to work on vacation, as do 39% of those reporting income of more than $100K per year.

₊ Laptop luggers are traveling more throughout the summer. They plan to take 3.8 trips compared to 2.9 trips by disconnectors (travelers not working on their marquee summer trip). However, their marquee national travels will be shorter: 1 in 5 plan to travel for up to three nights, and 44% plan to travel for four to six nights.

₊ Laptop luggers say 56% of all their summer trips are possible due to workplace flexibility. Four in 5 are also able to extend their marquee trip: Half are adding one to two travel days, and another quarter are adding three to six days.

₊ Even for disconnectors, 1 in 5 summer trips are enabled by remote work, likely as a result of others in their travel party working or as a contingency for their own potential work requirements.

The national travels report is based on a survey of 3,583 Americans fielded March 31-April 6, 2023. Among those, 2,262 qualified as travelers, and a smaller subset of 1,957 travelers who said they would stay in paid lodging, rather than only with family or friends, completed the longest version of the survey.