Dive Brief:

• Fewer U.S. adults are planning vacations, according to new research by MMGY Travel Intelligence, which reports that seven in 10 respondents intend to travel in the next 12 months, down slightly from 73% in October and down significantly from 86% a year ago.
• Despite economic concerns cited by travelers, the industry research and insights brand in its latest edition of Portrait of American Travelers reported upticks in trip frequency, international trips and planned spending.
• Additionally, 70% of survey respondents who are planning a vacation in the next six months intend to stay in a hotel or resort — signaling that interest in hotels is bouncing back after a pandemic-related swing toward short-term rentals.

Dive Insight:

After the pandemic generated increased interest in alternative accommodations like short-term rentals and camping, travelers appear to be choosing hotel stays once again.

The number of people opting for a hotel in the next six months increased 10% from February 2022, according to the spring edition of MMGY Global’s Portrait of American Travelers study, which surveyed more than 4,500 U.S. adults in February.

This reinforces the findings from the American Hotel & Lodging Association, which reported that 60% of Americans are more likely to stay in hotels this year as compared to last year, per Hotel Booking Index research conducted by Morning Consult.

Based on the MMGY survey, cleanliness standards remain one of the top factors that travelers consider when booking a hotel, while six in 10 travelers said that sustainability is also key. 

Also, six in 10 travelers said that they are willing to pay more to support companies that demonstrate environmental responsibility, with younger generations more willing than older generations to put their money where it matters. Older travelers said that they would be willing to adjust their behaviors — if it doesn’t increase the cost of the trip. For example, visiting in the off-season or using less single-use plastics.

Even with a potential economic downturn on the horizon, the survey respondents who are planning vacations said that they plan to spend significantly more — $4,339, up from $2,581 in February 2022 — as well as travel more, with slightly more trips planned in the next 12 months (4.2 trips) than a year ago (3.9).

“Any softness we’re seeing in travel intentions is tied almost entirely to lower-income households where concerns over personal finances and the affordability of travel inherently carry more weight,” said Chris Davidson, executive vice president of MMGY Travel Intelligence, in a release. “At the same time, a majority of travelers appear poised to travel more and spend more in the year ahead, and this should effectively offset those who may opt out.”

While most travelers appear to be optimistic about their vacation plans based on the survey, recession fears continue to linger, with new data expected later this week on consumer credit, which may shed more light on the state of the U.S. economy