Dive Brief:
- Although some 57% of U.S. adults find travel more expensive this summer compared to last, they still consider taking a trip important, with 56% still planning to take one, according to a recent survey from the American Hotel & Lodging Association.
- Amid elevated gas and airfare prices, travelers are finding “creative ways” to make their summer trips a reality, per the report. Before scaling back on hotel accommodations, respondents said they would reduce “on-site spending” first, in areas such as shopping (43%), dining (39%) and entertainment (26%).
- “Summer travel isn’t slowing down. Americans are protecting and prioritizing their vacations and becoming more budget conscious,” said Rosanna Maietta, AHLA president and CEO, in a statement. The report echoes findings from a recent Priceline study that found consumers are “deeply committed” to travel this season and are placing a premium on unique experiences.
Dive Insight:
Among those affected by higher prices, seven in 10 Americans (69%) say taking a summer vacation remains important to them. Instead of outright canceling their vacations, U.S. travelers are reimagining them and finding ways to stretch their budget, per the AHLA report.
According to the report, which includes polling conducted by Morning Consult of 2,201 adults in June, top cost-management tactics include choosing a less expensive destination (33%), traveling closer to home (33%) and driving instead of flying (30%), which could “redirect demand toward value destinations and nearby, drive-to markets.”
Among those surveyed, many said they are opting for more budget-friendly hotels with included amenities like breakfast, which AHLA says could “shift revenue toward midscale and select-service brands.”
Only 18% of travelers said they are canceling or postponing their plans altogether, while 15% plan on booking later to see if costs drop.
The report also found that younger and higher-income adults are prioritizing trips despite feeling the pinch of higher prices, with 75% of Gen Z and 78% of millennial travelers “most determined” to take a trip this summer.
AHLA’s report comes as travelers are increasingly seeking experiences that deliver a “strong emotional return,” Christina Bennett, consumer travel trends expert at Priceline, previously told Hotel Dive.
Hotels in turn are catering to budget-conscious travelers through various initiatives. Later this summer, Choice Hotels, for example, plans to launch the “Check into More Tour,” a custom experience for road trippers that includes interactive games and travel-inspired giveaways.
Additionally, hotel loyalty programs that deliver value and flexibility have a chance to win customers interested in getting the maximum value out of their hotel stays.
