According to the inaugural Modern Traveler Report from travel technology company iSeatz, 63% of U.S. travelers are cutting back on recreational spending such as dining out (35%), shopping (31%) and leisure activities (24%) in order to afford travel.
To continue taking trips amid financial stress, iSeatz says that trip budgets have dropped from a projected year-over-year increase of 21% to just 13%. According to the report, the average American has $1,745 earmarked for leisure travel this year, though that number increases to $1,899 among millennials.
When asked how they would handle a dream trip that exceeds their budget, 28% of respondents say they would wait and save up for the trip. That said, 26% say they would seek a more affordable alternative version of their desired vacation — indicating an opportunity for travel advisors to step in and save trips. Demonstrating their continued commitment to travel, respondents also say they are willing to cut costs elsewhere to afford their trip (19%) or even splurge and go over budget to fulfill their dream (14%).
Noteworthy areas where travelers would be willing to spend more money to ensure a “good trip” experience include comfort/convenience (26%), safety/security (16%), high-quality accommodations (15%), unique activities or excursions (12%), flexibility (7%) and local immersion or authentic experiences (6%).
When asked what matters most when booking a trip, value for the money ranked as most important (26%), followed by relaxation and wellness (12%), aligning with travelers’ ongoing financial concerns and top reasons to travel, which is led by stress relief (32%).
Other findings from the study that advisors may find helpful to know include the factors that most influence travelers’ choice of booking channel — led by price at 43%, but followed by trust/reliability at 15%, an area where advisors have a lot to offer. In addition, iSeatz notes that millennials, in particular, are hungry for personalization, with almost three-quarters of respondents in this age group indicating that customized experiences are now a baseline requirement.
And when it comes to their booking frustrations, travel advisors also have space to add value in areas such as poor customer support (12%), hidden fees and lack of price transparency (31%), difficulty comparing prices across multiple vendors (11%), dealing with a fragmented booking process (8%) and limited personalization or irrelevant recommendations (9%).
