After analyzing flight, hotel and car rental searches from this November, travel search engine Kayak has a few predictions for what trends will rule travel in 2023.
Among the top findings are the most in-demand destinations (hint: Asia will be hot), fluctuations in the cost of rental cars, and hotel booking trends in the U.S. and abroad. Here are a few highlights from Kayak’s research.
Trending Destinations for 2023
With the reopening of top destinations in Asia and the Pacific in 2022, Kayak expects to see a big bump in travel to the region for 2023. For example, searches were up 769% year over year for Ho Chi Minh City, Vietnam; 289% for Taipei City, Taiwan; 272% for Auckland, New Zealand; and 201% for Singapore.
Kayak’s full list of the top 10 destinations for next year (based on search traffic) includes:
- Ho Chi Minh City, Vietnam
- Taipei City, Taiwan
- Auckland, New Zealand
- Singapore
- Hong Kong
- Melbourne, Australia
- Bangkok, Thailand
- Tokyo, Japan
- Sydney, Australia
- Tel Aviv, Israel
The Flight Forecast
Kayak found that 2023 domestic flight searches are up 25% compared to 2022, while international flight searches are 64% above this year — meaning travel demand is high, and unlikely to decline anytime soon. As a result, flight prices are also trending upward for next year, with domestic flight prices up 52% over 2022, and international up 29%.
For price-conscious clients, Kayak recommends trips earlier in the year, as both domestic and international flight costs are expected to continue rising through June.
More air-related trends for 2023 include:
- A rise in solo travel: Searches for single-person flights are up 36% versus 2022.
- Demand for premium economy seats: Searches for this fare class are 64% higher than in 2022.
- Most popular months to travel: Data shows travelers take the longest trips in December, and the largest numbers of trips are taken in June and July.
Hotel Booking Trends
According to Kayak, travelers are less interested in domestic hotel stays (searches decreased 5% year over year) than international ones (searches increased 4%). This may mean that clients traveling within the U.S. already have a place to stay (such as with friends or family), or could be a result of nightly rates, which increased slightly for domestic hotels and decreased somewhat on the international front.
Clients looking for affordable hotels may want to consider the Western U.S., where room rates are generally lower, or international destinations with low room rates. These include Ho Chi Minh City, Vietnam; Bangkok, Thailand; Berlin, Germany; Lisbon, Portugal; Seoul, South Korea; and more.
What’s Happening With Rental Cars in 2023?
During the pandemic, rental car inventory shortages have been a hot topic, resulting in booking difficulties and sky-high prices. Fortunately, Kayak expects to see these bumps in the road even out somewhat in 2023.
Here are a few of the key takeaways for this market:
- Demand for rental cars is down 3% for 2023 compared to 2022.
- Domestic car searches are down 21% year over year, while international searches are up 41%.
- Car rental rates have dropped overall, with a 5% decrease in rates compared to 2022. Average daily rates for domestic car rentals are 7% lower, though international rates have risen 12% year over year.
