Americans continue to value their summer travel plans, despite increasing costs and other economic pressures. In the last two years, inflation has challenged Americans’ financial conditions but travel has mostly been impervious, a latest study by Deloitte on summer travel has revealed.
This summer, Americans are keen to travel again, with nearly half (48%) of the respondents planning to take vacations which include paid lodging. While this is on par with the 2023 survey, respondents are taking fewer vacations this summer. The volume of summer trips slated for post-Labor Day September has increased from 12% in 2022 to 17% in 2024.
Affordability of traveling is considered one of the biggest deterrents to travel. While pricing pressures have forced some people to stay home this summer, many American travelers have instead raised their budgets. One in five respondents planning to spend more on their travels this year compared to 2023. The average marquee trip budget up around 10% across all income levels compared to last year.
Intent to spend on airline seat upgrades has also climbed across income levels. There is a big jump in domestic flying intent, followed by road trips. There is higher demand for direct international flights and upgraded fares, the survey said. Some 38% of the air travelers said they plan to fly international, a similar share as seen last year. While Europe was the most favored destination in 2023, international travelers are exploring diverse destinations, with Asia witnessing the biggest gains.
Road trip is a popular choice among travelers, with most Americans (two in three) hitting the road for marquee trips to save money. About 66% (up from 56% in 2023) said they will travel by car. Road trip distances are getting shorter and many are opting for road trips as they are traveling to destinations closer home. Only 7% of respondents cited road trips as a more environmentally friendly travel option than flying.
There is a dip in hotel bookings for the longest summer trip, as travelers explore alternate lodging options. Some 63% of respondents said they will stay in hotels, while 14% are looking to stay at private rentals. Bed and breakfast, RVs and camping are also being favored this year. More higher-income travelers are opting for cruises and rentals, while the lower-income travelers are interested in camping. Mid-income travelers are headed towards bed and breakfasts. Gen Z and Millennials are propelling demand for bed and breakfasts, rentals and camping.
Similar to 2023, many Americans are planning to engage in in-destination travel experiences, including an outdoor activity or adventure (49%), visiting a popular attraction (48%) or taking a guided tour (34%). Interest in ticketed events, such as concerts and festivals, is climbing with 28% interested in doing so.
“There is a perception that airfares and room rates are high, and some Americans are sitting out travel this summer as they look for softer pricing, showing signs they are hungry for deals and being intentional about pursuing experiences they perceive as special enough to be worth the higher spend,” said Mike Daher, vice chair, Deloitte LLP and U.S. transportation, hospitality and services non-attest leader. “As travelers look to pack the most value into their summer trips, providers have an opportunity to balance quality and cost to provide unforgettable moments for those who are looking to make the most of their travels this summer.”
One of the lasting changes brought about by the pandemic is remote work, which is creating a new category of traveler. Laptop luggers prove to be avid and engaged travelers, the survey said, and travel further, doing more in the destination and making more efforts to maximize the impact of their travel. Millennials and higher-income travelers will be engaging in laptop lugging the most, the survey said.
The flexibility offered by remote working has the biggest impact on travel timing and duration. One in three laptop luggers said they were planning to take more short trips through the year, longer trips, more spontaneous trips and more trips in off-peak travel seasons. Availability of stable internet, good food near their accommodations and refundable activity bookings are key to travelers planning to work during their trips.