summer travel is heating up

Summer travel is heating up

Travel has always been a top priority for millions of Americans, and despite rising prices and looming economic uncertainty, U.S. travelers show no sign of slowing down. According to Statista, the travel and tourism sector of the U.S. is expected to reach over $190 billion in 2023 alone, highlighting an annual growth rate of more than 3%. The U.S. travel industry is poised to have a record-breaking year, especially as Americans prepare for summer.

Saving to splurge

With inflation top-of-mind for many Americans, travelers are strategically budgeting in order to alleviate the burden of economic stress when booking travel. A Vacation Deprivation report by Expedia showed that 63% of U.S. employees have felt travel deprived and are willing to cut back on other expenses to guarantee their getaway. 40% of respondents said they are cutting back on groceries, and another 40% say they are dining out less. Nearly half of respondents from a Forbes Advisor survey say they are actually expanding their budget for the 2023 travel year, and nearly half of participants are preparing to spend at least $4,000 on travel throughout the year.

Travelers are doing their due diligence by conducting thorough research before securing bookings to ensure their travel expenses will be worthwhile. More than 90% of that research is done online, and 72% of consumers won’t make final booking decisions without researching and/or reading reviews. Once travelers have concluded their research and are ready to finalize their plans, 83% of U.S. adults will book their travel online.

Domestic destinations are on the rise

As a means to combat high travel costs, travelers are choosing domestic locations over international destinations. In fact, almost 80% of Americans will travel domestically this summer according to eMarketer, and three-quarters (74%) of American travelers plan to fly domestically by August.

Whether it's traveling with family and friends, a romantic getaway, or a road trip, beach cities and large metropolitan cities remain popular destinations. This summer’s hotspots include New York City, Las Vegas, Orlando, Los Angeles, Chicago, and Honolulu. Domestic travel’s affordability compared to international gives travelers more financial freedom when booking in the states, encouraging them to check out new cities.

Sustainable Sightseeing

Sustainable tourism is becoming increasingly popular as travelers adopt practices that prioritize the well-being of the environment by reducing the negative impacts associated with travel. A recent study by the World Travel & Tourism Council found sustainable tourism is increasingly desired by travelers, who seek to contribute positively to the environment as well as other aspects. In fact, 69% of travelers actively search for sustainable options when planning their trips. Over the past two years, more than half of travelers have made conscious choices in favor of more sustainable options. 

Domestic tourism, sometimes referred to as a staycation, is one of the best sustainable choices  that can be made as it allows for travelers to positively impact local communities, help economic growth, and combat mass tourism while also benefiting the environment. It offers an opportunity to explore and appreciate the beauty of one's own country in a responsible and ethical manner. Brands in the travel space that invest in sustainable practices should showcase them to travelers. Consumers will become loyal advocates of brands based on their personal values.

 

Key considerations for brands

Travel and tourism is back in the swing of things, and Americans are ready to book their next vacation. Now is the time for travel brands to market strengths, build consumer loyalty, and give travelers insight into what makes your brand reliable and different from others. Consumers want to know the ins and outs of companies before making a concrete decision, and with the right marketing, they can see the credibility you have to offer. By leveraging Causal IQ’s consumer targeted technology, your brand can reach intended travelers from the beginning until booking, while increasing market share and ROI optimization.