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MMGY study: Summer travel to be a hit this season despite inflation, travel cost concerns

The American tourism industry is set to see an impressive performance this summer, building on last year’s significant gains, a recent study has suggested.

More than three-quarters of American adults will take a vacation in the next 12 months, with 48% of all adults planning to travel this summer especially, according to the recent edition of MMGY Travel Intelligence’s ‘Portrait of American Travelers’ study.

Despite a slight decline in interest in road trips (72%) compared to the same time last year, overall, the category remains healthy. About 63% of travelers said they have been on a road trip in the last 12 months, a record figure in the survey’s history.

Travel now forms an essential aspect of an individual’s personality, with most Americans considering travel a direct reflection of their own identity. About 51% of travelers said the places they visit speak about who they are.

Many U.S. adults expressed interest in going on road trips this summer.

Despite the robust outlook for summer, increasing travel costs and inflation have resulted in many travelers opting out of travel altogether in the near term. Around one in five U.S. adults said they had no travel plans at all, up 5% in 2021.

Hawaii led as the destination with the most domestic travel interest, followed by mainstay destinations like Las Vegas, California, the Florida Keys, New York City and Orlando.

Among the international destinations, Europe had the highest traveler interest, followed by the Caribbean, Canada and Mexico.

Eagerness for international travel remained steady as more countries in Asia Pacific opened their borders to American tourists. About 76% of active leisure travelers said they were keen to travel abroad in the next two years. This was led by the younger generations — 89% of Gen Zs and 84% of Millennials.

Cannabis tourism continued to maintain its high traveler interest, with more than one-third of American travelers expressing interest in taking part in a cannabis-related activity while on vacation. About 31% said they were interested in cannabis effects which would complement and upgrade their culinary experiences.

Bespoke travel has emerged as the new luxury travel. As per the study, only one-third of American travelers earning more than $100,000 a year consider themselves “luxury travelers.”

However, the ability to explore and book a unique adventure has become the new social currency. Three-fourths of travelers said that the memories they make from vacations were more valuable than any material item they bought in the last year.

Although some sectors, like the meetings/conventions and corporate transient travel, continue to lag, Americans have been showing “very, very high” eagerness to travel, said Chris Davidson, executive vice president of MMGY Travel Intelligence.

“This notion of self-expression through travel — or ‘identity travel’ — indicates that Americans,  now more than ever, seem to be seeking out destinations and activities that best align with their unique ideals and values,” said Davidson. “As American travelers become more discerning with their dollar, marketers should take greater note of this changing mindset, working to clearly articulate and deliver on their brand values to attract those who see life through a similar lens.”

The survey, now in its 33rd year, is conducted on over 4,5000 U.S. adults quarterly. This is the second of four quarterly reports to be released this year. The information presented in this survey was obtained from interviews with U.S. adults in April and May featuring data from four generations — Gen Zers (18–25), Millennials (26–41), Gen Xers (42–57) and Boomers (58–76). The Silent/GI generation (77+) was also surveyed, but results were not broken out for this specific generation because of the small sample size.

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