Despite a high optimism for the travel industry’s return, rising consumer costs have driven many Americans to re-evaluate their future travel plans, according to new data from the May 2022 edition of The State of the American Traveler, a study from Destination Analysts.
Rising Gas Prices and Inflation Are Taking a Toll on Travelers
In April, 38.3% of the nearly 4,000 U.S. travelers surveyed refrained from traveling due to sky-high prices at the pump. And while road trips soared in popularity over the last two years, 58% of respondents are opting to take fewer trips by car this year. (And of those who are planning to hit the road, 60% say they will stay closer to home.)
The effects extend beyond the gas station, too. Twenty-three percent of U.S. travelers have canceled an upcoming trip due to higher costs, and 59% anticipate an economic recession to begin in 2022. And while the last year seemed to point to an elevated interest for high-end experiences, fewer Americans — 35.6%, down from 40% in March — are seeking luxury offerings.
Average travel spend is also taking a dip: Travel budgets are currently sitting at $3,857, down from $4,283 at the start of the year.
The Good News: Travel Enthusiasm Is Still High
Leisure travel is still a high priority for travelers, with 90% reporting to have a trip on the books for this year (with the average traveler having three trips planned already).
This optimism extends to both the immediate and distant future, with nearly 61% continuing to budget for vacations in the next three months, and 42.4% believing that their financial future will improve in 2023, despite the possibility of an economic recession.
Pandemic Travel Trends: Less Anxiety, But Many Predict a New Variant
Destination Analysts also reports that as the world begins to resemble its pre-pandemic self, concerns about COVID-19 have dropped dramatically. In fact, fewer than one-fifth of recent travelers reported feeling any sort of concern about COVID-19 during their last trip.
And although nearly half of these same travelers (45%) anticipate the emergence of a new potentially dangerous variant of COVID-19 this year, it has not affected their confidence to travel safely.
Editor's Take
Over the next few months, travel advisors should keep in mind that every client’s financial situation is different, and some travelers may be more sensitive to rising costs right now. Stretching budgets, upselling or pushing add-on services may not be a successful approach; alternatively, advisors should emphasize the value of the services they provide, rather than focusing on a trip’s price point. If clients are expressing hesitation about travel (or inflation), show them that you’re willing to act in their best interests, whether that’s by rescheduling trips to a later date, searching for lower-cost options or just lending a sympathetic ear. — Emma Weissmann, Digital Managing Editor
