top travel trends for 2023

There is no doubt travel is extremely important in the U.S, not only for personal fulfillment but for the health of the economy. During the Covid-19 pandemic, leisure spending on travel and tourism across the globe slumped from 4.96 trillion U.S. dollars to $2.33 trillion. Meanwhile, global travel and tourism (travel of leisure and business combined) in 2020 suffered a loss of nearly $4.5 trillion. For consumers, the lack of mobility increased their appetite for travel. Now that coronavirus-related travel restrictions have eased and job growth is healthy again, consumers are making up for lost time.

Domestic travel is here to stay

With travel restricted during the worst of the pandemic, people compromised – and, in many cases, found pleasure and satisfaction traveling more simply and closer to home. Domestic travel has seemed to capture the hearts of many consumers with 90% saying they plan to take a domestic vacation in 2023. Being close to home allows travelers to get to their destination quickly and more affordably, giving them more time to relax. For DMOs, working with a programmatic partner to reach target audiences within a few hundred miles of your destination is key.

Work from Rome

A more flexible way of living is proving to be an enduring legacy of the pandemic. Remote work is leading consumers to adopt a “work from anywhere” nomadic lifestyle. According to Deloitte, “laptop luggers,” will take two to four trips this year, compared with one to two for “disconnectors,” and 75% of them will add extra time to their vacation. Families benefit too from flexible lifestyles as they become less reliant on traditional busy peak periods such as school vacations to travel.

Business travel bounces back

Corporate travel budgets are recovering to pre-covid levels. According to recent research conducted by Expedia Group, 1 in 3 consumers say they are planning upcoming business travel. While conferences and in-person events are filling up, team bonding travel is also trending due to remote work. Team meetings and retreats allow colleagues to bond and strengthen relationships. Experts expect a significant increase in team travel because they effectively motivate teams, improve employee satisfaction, strengthen company loyalty, and unlock creativity.
For brands, loyalty programs are of the utmost importance to travelers. Companies that don’t offer travel rewards are missing out on opportunities to increase market share and drive customer engagement, and companies that do offer rewards need to make improvements if they want to stay competitive.

Sustainability & authenticity

Sustainable travel involves minimizing impact on the local cultural environment. There is a rapidly growing demand for purposeful and meaningful travel experiences, particularly around supporting sustainable travel initiatives, engaging with local communities, and resorts offering unique wellness activities.

A recent American Express Travel study found 84% of millennials want to immerse themselves in local culture on upcoming trips and 45% of Gen Z claim they prioritize authentic travel experiences. 81% of people said they would like the money they spend traveling to go back into the local communities they visit. As the need for sustainability rises, there is an opportunity for brands to consider how they can give people a sense of reassurance about the impact of their travel.