Summer Holiday 2023 Seeing Conflicting Numbers on Plans

Summer holiday 2023 plans are a bit off this year, depending on whose survey you read.  For instance, a recent report by The Vacationer posits that nearly 85% of all American adults intend to travel this summer. The fine print reveals that the number also notes that  40.71%  said they will travel one time only. Based on a recent census, that puts some 219 million American adults on the go for this year’s summer holiday. It also shows that 5% more people have intentions to travel at least once this summer when compared to its 2022 survey.

Squaremouth.com, a US travel insurance provider, reports that travelers are spending more than $9,300 on average on their trips this summer … more on their trips this summer than ever before.

Analyzing destinations, expenses and demographics from thousands of travel insurance policies purchased for trips this summer, Squaremouth offered the three most notable summer travel trends of 2023. 

Summer Travelers See Higher Trip Costs in 2023

The cost of a summer holiday in 2023 has increased for a third consecutive year, resulting in the most expensive summer trips to date. 

Average trip costs for policies purchased on Squaremouth have surpassed $9,000 for the first summer on record

The average summer holiday cost in 2023 is 6.8% higher than last year, and 26.7% higher than 2021

Inflation and the overall rising cost of travel are the key drivers of higher trip costs, leading to travel insurance premiums increasing respectively.

Average Summer Trip Cost & Travel Insurance Premiums by Year

Year	Average Trip Cost*	YOY Change	Average Premium	YOY Change
2023	$9,333	+6.8%	$564	+6.8%
2022	$8,742	+18.7%	$528	+17.1%
2021	$7,366	-10.6%	$451	-8.5%
2020	$8,242	-2.6%	$493	+2.9%
2019	$8,459	–	$479	–

*Average trip cost data only reflects policies sold with an insured trip cost
*Average trip cost data only reflects policies sold with an insured trip cost

Over 75% of Summer Travelers Are Heading Abroad 

* In 2023, 76.4% of trips identified by this provider’s customers show plans for heading abroad.

* 8 of the 10 most popular international destinations this summer are European countries, accounting for 42% of all summer travel insurance sales

* Italy is the most popular international summer destination for the second summer in a row

Top 10 International Summer Destinations for 2023

Destination	% Of Sales
Italy	6.75%
Canada	5.90%
United Kingdom	5.42%
France	4.06%
Greece	2.96%
Mexico	2.96%
Iceland	2.89%
Germany	2.81%
Ireland	2.48%
Norway	2.23%

More Boomers, Less Gen Z & Millennials Traveling This Summer

The Squaremouth data reveals a shift in traveler demographics this summer, led by the return of Baby Boomers.

Notable Stats:

* Baby Boomers account for 40% of all summer travelers this year, compared to 33% last summer and 29% in 2021

* The percentage of Gen X, Gen Z, and Millennial travelers taking a summer trip has fallen for the second consecutive summer

	% of All Travelers
Generation	2023	2022	2021
Baby Boomers	39.70%	33.31%	29.41%
Gen X	22.27%	24.01%	24.59%
Gen Z	15.17%	18.03%	19.26%
Millennial	12.20%	15.09%	15.93%
Silent	5.52%	4.42%	4.96%
Gen Alpha	5.14%	5.13%	5.84%

Note: Squaremouth Analytics compared travel insurance sales data of thousands of policies purchased at the company each year before April 19, with travel dates between June 23rd and September 21st.

Inflation Truncation

Meanwhile, a recent Bankrate.com survey reveals that 80% of people who had planned summer vacations are now modifying those plans as a result of inflation.  

According to the study, the majority (80%) of probable summer vacationers are altering their plans as a result of inflation.

Americans who are planning at least one vacation this year anticipate using cost-cutting measures including going for fewer days (26%) or shorter distances (23%), driving rather than flying (26%), or partaking in less expensive activities (28%).

This year, more people are taking vacations than in 2022. Some 63% of American people are expected to plan for their summer holiday 2023, up from 61% in 2022.

Many people’s capacity to take a summer vacation this year is restricted by affordability. Some 58% of people who don’t anticipate taking a summer holiday in 2023 said they cannot afford it. This is an increase from 2022, when 48% of people who said they were unlikely to take a summer vacation claimed they couldn’t afford one.

Budgets are getting squeezed by inflation. Inflation or rising prices, according to 62% of those who can’t afford a summer vacation this year, are to blame.

People have plans to adjust to increased prices. By choosing less expensive lodgings or places, 29% of travelers save money, closely followed by 28% of travelers who want to partake in less expensive activities. Fewer trips, shorter trips, or driving rather than flying to their destination will all result in cost savings for 26% of vacationers.

Around two thirds of adults are in for summer holiday 2023.

63% of American adults plan to travel over the summer, whether they fly off to a fancy resort or putter around the house. 

One-third of American people (33%) are very likely to take a summer holiday in 2023, compared to 30% who are somewhat likely to do so, 16% who are not at all likely to do so, and 20% who are not at all likely.

Summer Holiday 2023: Follow the Money

Unsurprisingly, whether a household takes a summer vacationing 2023 is greatly influenced by money. A summer vacation is most likely to be planned by households with an annual income of $100,000 or more (81%), followed by those making between $50,000 and $99,999 (65%) and those making less than $50,000 (54%).

Younger generations are more likely to be planning on taking a summer vacation this year, according to Bankrate, however affordability remains a question:

-76% of Gen Zers (ages 18-26)

-70% of millennials (ages 27-42)

-62% of Gen Xers (ages 43-57)

-54% of baby boomers (ages 58-77)

Beach or Bust

Beaches remain the most popular summer vacation destination.

Americans are dreaming of sand and waves this summer. Nearly two in five (39%) of vacationers plan to go to the beach this summer, according to Bankrate. That’s similar to 2022, when 37% of likely vacationers planned to go to the beach.

Other popular vacations include outdoor destinations such as a national park (23%), campground (19%) or an amusement park (19%).

Compared to affordable spots like the beach, relatively few (14%) people plan to go on an international vacation or cruise (14% each) this summer.

 

More than half of U.S. adults not taking a 2023 summer vacation cite affordability.

* Among the 37% of U.S. adults unlikely to take a vacation this year, most — 58% — say a reason is that they can’t afford to. That’s 10 percentage points more than in 2022, when 48% of those unlikely to take a summer vacation said they couldn’t afford one.

* Nearly a quarter (23%) of Americans also said they aren’t interested in taking vacations currently, while 15% cited their health or age. Three years after pandemic lockdowns, 9% of people said they aren’t likely to take a summer vacation due to COVID-19 concerns.

Among gender lines, more women than men said they would be unlikely to take a summer vacation due to not being able to afford it (62% and 54%, respectively).

Gen Xers were also most likely to say they couldn’t afford a summer vacation this year compared to other generations. Similar to those who cite inflation, 59% say that insufficient income is why they can’t afford a vacation this year. Other reasons include being focused on other financial priorities (36%), debt (30%) or something else (5%).

Due to inflation, the largest percentage of likely summer vacationers (29%) plan to select less expensive vacation accommodations or destinations. In addition, 28% of vacationers plan to engage in cheaper activities.

These figures are up from last year, when 22% of vacationers making changes to their plans due to inflation chose less expensive accommodations or destinations, 23% engaged in cheaper activities, 19% traveled for fewer days and 16% drove rather than flew to their destinations.