Dive Brief:
- Demand for international travel is on pace to hit record numbers in the next two years, as active travelers from the U.S., in particular, prioritize nondomestic trips amid ongoing economic uncertainty, according to a recent survey of active travelers by global hospitality-focused integrated marketing firm MMGY.
- Active U.S. travelers expressed a strong intent to travel internationally in the survey, which polled travelers who have taken at least one vacation outside of North America or the Caribbean in the past three years and are expected to take at least one vacation outside of that region in the next 12 months. U.S. travelers’ expected spending on international vacations over the next two years has increased by 10% year over year, the survey found. Meanwhile, U.S. travelers intend to take an average of 2.8 international trips over the next two years.
- Safety and political stability, as well as unique experiences abroad, have “overtaken cost as primary factors impacting plans to vacation internationally,” according to MMGY. Economic uncertainty and changing travel behavior had a downward impact on U.S. hotel RevPAR in the second quarter of this year.
Dive Insight:
Active U.S. travelers are increasingly prioritizing international trips as a result of recent U.S. government actions, according to MMGY’s July survey, with responses from 2,064 adults living in the U.S. or Canada. More than a third of Americans (34%) reported altering travel plans due to tariff issues, with 26% canceling trips entirely, the survey found.
In May, the World Travel & Tourism Council cited similar policy concerns for a forecast $12.5 billion loss in inbound international visitor spending to the U.S. in 2025.
In the second quarter of this year, a drop in international visitors, in part, brought widespread U.S. RevPAR declines for major hotel companies including Hilton, Choice Hotels International and Wyndham Hotels & Resorts. U.S. RevPAR declines continued through July, decreasing 1.1% year over year during the month, according to CoStar data.
Despite economic uncertainty, travel remains a priority for U.S. consumers — active travelers will just take their trip budgets elsewhere, according to MMGY Americas President Craig Compagnone.
“We continue to see a strong demand for travel despite broader consumer uncertainty, and this is proving to be especially true for those seeking international experiences,” Compagnone said in a statement. “Travelers from North America are spending at consistently strong levels, but with that spend comes a new set of expectations that include greater personalization, local authenticity and considerations for safety.”
Hospitality pros told Hotel Dive earlier this year that travelers would increasingly seek experiences that immerse them in their destination in 2025.
Other travel trends highlighted in MMGY’s survey include the continued boom of bleisure travel, increased demand in using a travel advisor for trip planning and travelers’ willingness to invest in premium experiences.
