Accounting and consulting firm PwC’s annual Holiday Outlook indicates that 47% of consumers are planning to travel this holiday season. Most (68%) of respondents report that they are very or extremely concerned over the rising costs of travel, with trip spending set to rise to an average of $510 per person. This figure represents a 12% increase over 2022 spend and, notably, a 37% increase from 2019 spend.
Broken down by generation, millennials are leading this spending change, averaging $670 per person, compared to $611 for Gen X, $447 for Gen Z and $314 for Boomers.
When it comes to destination choice, the report found that just 18% of consumers will travel outside the U.S., including to Mexico, Central America and the Caribbean (41%); Western Europe (34%), Canada (24%), South America (24%) and Central/East Asia (17%). A much more substantial 59%, meanwhile, will travel within their state.
Our Analysis: High Demand for Travel Looks Likely to Continue Next Year
This summer’s travel boom shows no sign of letting up. Travelers also appear to be undeterred by rising prices, at least for the time being.
If these trends continue, 2024 may prove to be another very busy, booked-up year for the travel industry. Whether clients are looking to travel for the upcoming holiday season or into the new year, travel advisors should be encouraging them to book as early as possible.
Fast Facts: Holiday Travel Trends
- According to PwC, millennials will travel the most this holiday season, with 61% planning trips, compared to 58% of Gen Z, 41% of Gen X and 27% of Boomers.
- Gen Z will increase its holiday travel spending by 23% compared to last year, Gen X by 17% and millennials by 8%. Boomers are the only generation decreasing its spend (down 22%).
- Sixty-one percent of travelers are very or extremely concerned about rising hotel costs.
- Due to concern over high prices, 60% of consumers will redeem rewards to book travel for the season.
