The travel industry is continuing to see a significant improvement in overall performance, with a considerable rise in travel intent among Americans.
According to the latest research by MMGY Travel Intelligence, about 76% of U.S. adults said they plan to take a vacation in the next 12 months, up from the 70% observed at the same time in 2023.
Additionally, 64% of these travelers said they plan to take a trip in the next six months, a significant increase from 58% seen in October 2023.
There has been a slight increase in the Traveler Sentiment Index (TSI) from February 2023, rising to 113 from 109. This is an indication of the growing optimism related to both domestic and international travel, despite inflationary pressures in the U.S. and a marginal dip in perceived safety of international travel.
Notable takeaways from the report include:
- A slight decline in TSI among travelers who think international trips are safe (down from 52% this time in 2023 to 48%).
- Despite the soaring costs, inflation and gas prices seem to having less impact on travel pans when compared to October 2023.
- When it comes to increased travel intentions, Millennials and high-income households lead in this category, touching the highest level since the pandemic.
- Hawaii (67%), Florida (66%), California (57%) and Colorado (56%) emerged as the top states drawing interest among leisure travelers. Las Vegas (59%), Maui (58%) and Honolulu (58%) led as destinations of interest.
- Sustainability in travel planning continues to be a priority for many travelers, with 56% stating that they were willing to pay more to support environmentally responsible providers. Gen Z and Millennial travelers ranked high in sustainability, especially when making travel decisions.
- Out of 10, three active leisure travelers have used AI tools to plan their travels, with younger travelers most likely to use AI for travel planning.
Despite reporting safety concerns for international travel, the overall interest and intent to travel is on an upward journey, said Chris Davidson, executive vice president of MMGY Travel Intelligence.
“Travelers are continuing to prioritize spending on experiences, and peoples’ travel decisions are increasingly affected by values such as commitments to environmental sustainability.”
Travel intent has been steadily increasing among Americans, with most travelers planning to travel for leisure (53%) and/or business (32%), a recent poll conducted by the American Hotel & Lodging Association concluded. Conducted by Morning Consult, the poll revealed that hotels were the most popular lodging option for the likely travelers.
The preference for hotels was clear among business travelers, with seven in 10 respondents stating they would like to stay in a hotel for their work travels in the near future. Half of leisure travelers said they plan to stay in hotels.
Majority of U.S. adults (72%) said they was a similar or higher possibility of taking overnight vacations and staying in a hotel this year compared to 2023.
Inflation is expected to play a substantial role in the travel behavior of travelers aged between 18 and 34 in the next four months, the survey found, with at least three out of five respondents stating that inflation was likely to lower their chances of staying at a hotel, traveling overnight and flying.