As Americans prepare for summer travel, demographics, budgets, and travel motivations are shifting, with many opting for alternative lodging options. While the surge of post-pandemic "revenge travel" may have peaked, summer travel remains robust.
Mike Daher, who leads Deloitte’s travel and hospitality sectors and co-authored the Deloitte 2024 Summer Travel Report, told Hotel Dive, “This will be a busy summer. Nearly half of Americans are planning to take a trip this summer — a slight decrease from last summer, but still a significant number.” AAA predicts that 44 million Americans will travel for Memorial Day alone, and projections indicate a 4.1% year-on-year increase in RevPAR, according to Sachin Avadhani, EY Americas’ hospitality sector leader, and Michael Selinger, EY’s senior manager of strategy and transaction.
Travelers this summer will have diverse demographics, budgets, and reasons for travel, with an increasing preference for alternative lodging options like camps and RVs. To stay competitive, hoteliers must adapt to shifting traveler desires and offer unique, memorable experiences. Leisure travel will be popular across all generations, with Lindsay Roeschke, a travel and hospitality analyst at Morning Consult, highlighting Gen Z as a “rising force.”
"The primary driver for all generations in travel will be to relax and escape daily responsibilities,” Roeschke said. However, travel preferences will vary by generation. Gen Z travelers are more deal-focused, millennials will use credit card miles for international travel, Generation X will plan more solo trips or travel with friends, and baby boomers will travel with extended families. Daher noted that baby boomers, in particular, will vacation extensively, accounting for 34% of travelers this summer, up from 28% last year. Budget is a significant determinant of travel plans this year. With rising travel costs, a higher percentage of travelers will come from higher income brackets. Deloitte reports that 44% of this year’s summer travelers earn over $100,000 annually, compared to 35% last summer. Some travelers are increasing their budgets to accommodate higher costs, while others are opting out of travel due to perceived expenses.
Morning Consult’s Summer 2024 Travel Demand Outlook found that consumers are more likely to avoid expensive hotels rather than downgrade to cheaper alternatives. Demand for high-end experiences is expected to boost performance in the premium segment, though competitive pricing and ADR pressures present challenges, according to EY’s Avadhani and Selinger.Summer 2024 will see greater demand for experiences and adventures, with travelers seeking meaningful engagement and self-discovery. This trend has led to arise in solo travel and travel services catering to spontaneity and cultural authenticity.Alternative lodging is on the rise, with 63% of travelers planning to stay at hotels this summer, down 10% from last year, according to Deloitte. Interest in private rentals, bed and breakfasts, RVs, and camping is increasing as travelers seek meaningful experiences. Daher highlighted a trend toward RV travel across all income brackets, with resort brands catering to this demand. For instance, a $2 billion theme park in Oklahoma will feature a hotel and a 320-acre RV park, and Margaritaville is expanding its Camp Margaritaville RV park brand with millennials in mind.
Experiential travel is also driving a boom in sports tourism. Hotels are capitalizing on events like the Summer Olympics in Paris, with U.S. hotels offering sports-related experiences. Wyndham Hotels & Resorts now allows loyalty program members to exchange points for Minor League Baseball tickets, and Marriott Bonvoy has partnered with the U.S. Soccer Federation for exclusive fan experiences. The U.S. co-hosting the ICC Men’s T20
World Cup next month is expected to boost international tourism, particularly in New York, Florida, and Texas. To stand out this summer, Daher advises hoteliers to create unique and differentiated experiences. This could include educating travelers about their destinations or surprising them with unexpected experiences.
Despite the strong U.S. dollar, which may encourage Americans to travel abroad, the U.S. hotel industry can harness travel trends while safeguarding against potential risks by balancing luxury growth opportunities with competitive and economic challenges.
Generative AI-based technologies have not yet significantly impacted the industry, although interest remains. Deloitte predicts the rise of “Gen AI agents” that will optimize travel bookings, pricing, loyalty memberships, and more in the future.
Licensed in California | Cal BRE #01349057
Company Name: Teocalli Inc
EIN: 81-3887986
548 Gibson Dr,
Roseville, CA 95678
All Rights Reserved | Hotel InnVestments | Privacy Policy | SMS Disclosure
Real Estate Web Design by Bullsai