Summer 2022 is probably going to be a superb one for travel and tourism within the US. The following 5 key tendencies are shaping the trade, with implications for resort house owners.
Leisure travel is booming
Revenue per out there room (RevPAR) within the US outstripping not 2020 ranges, however simply 2019 ranges too. RevPAR outperformance is basically pushed by charges. Hotels aren’t fairly as full as they have been in 2019, however charges have elevated—the typical each day charge (ADR) is round 15 % costlier now than it was in 2019.
Essentially, folks like to travel. We requested over 1,000 vacationers within the US what they’d do in the event that they gained the lottery, and spending on travel ranked because the second highest selection (Exhibit 1).
This summer, for a lot of, holidays will occur “it doesn’t matter what”
The survey additionally revealed that persons are involved about macro-economic components comparable to inflation, however this isn’t sufficient to cease virtually 70 % of vacationers from taking their trip this summer (Exhibit 2).
Gas costs are excessive? People will go someplace nearer. Hotel costs prohibitive? They’ll hunt for a deal. Consumers might discover methods to chop again, however these components won’t damage their vacation plans (Exhibit 3).
Since the survey was performed in June 2022, travel plans have been put in movement. AAA estimated that 42 million folks can be touring by automotive over the July 4 weekend, a brand new car-travel quantity document for this era—regardless of nationwide common fuel costs exceeding the $5 mark.
Furthermore, resort occupancy, ADR, and RevPAR figures all exceeded the comparable week numbers in 2019, and TSA checkpoint travel confirmed a 15 % improve for the Thursday and Friday earlier than the July 4 weekend, in comparison with 2019.
Guests have extra lodging choices than ever
The strains have blurred between lodging classes, and vacationers are looking for resort, dwelling share, all-inclusive, and outdoor/glamping choices.
While 78 % of vacationers surveyed say they’re snug staying in a resort, solely 61 % are snug staying in various lodging. The high 5 causes for staying in a resort embody consistency and predictability; security and privateness; handy location; availability of concierge, lounge, restaurant, and/or different facilities; and decrease value. By comparability, vacationers might select various lodging choices as they provide more room; family facilities; and an genuine or native expertise.
So, the place are these vacationers planning to go? Over half (54%) plan to go to the seashore—a preferred selection amongst 25 to 34 year-olds. The subsequent almost definitely vacation spot (32%) is a metropolis / city location, adopted by a mountain / climbing journey (24%).
Loyalty is heating up
In this surroundings of upper costs and elevated selection, efforts to take care of buyer loyalty are intensifying. But the survey exhibits that many vacationers, significantly the youthful era, do not feel they get sufficient worth from loyalty applications, or the applications appear too sophisticated.
There are some options of loyalty applications that matter greater than others: providing reductions, having the appropriate footprint so company can keep the place they wish to, and making it straightforward to redeem factors are the favorites.
ESG is gaining significance
While 75 % of vacationers surveyed agree that sustainability is necessary, solely half would pay further for it. But youthful vacationers are much more prepared to pay further for inexperienced initiatives. Such initiatives that presently resonate greatest with company embody using eco-friendly cleansing provides; Replacement of plastic key playing cards with alternate options; decreased use of paper, eg, digital receipts; and sensible home equipment and monitoring techniques to optimize power utilization.
Five methods resorts might reply to those tendencies
- Encourage “bleisure” stays by highlighting native sights and occasions. With leisure booming and enterprise travel recovering, we anticipate to see an increase in bleisure travel.
- Help company discover you after they’re researching their subsequent journey. Hotels can spend money on their on-line and social media presence to speak with potential company early on of their analysis. This is very necessary as resorts face labor shortages and generally reduce on service ranges: talk transparently to verify visitor expectations are set appropriately earlier than company set foot on property.
- In markets with heavy various lodging provide, communication differentiators. Hotels can talk what makes them higher, particularly comfort, consistency, and out there facilities.
- Upgrade loyalty applications. Hotels might have to relook at their loyalty applications to verify they’re addressing new wants, and serving to each frequent and rare company take advantage of out of their applications.
- Launch inexperienced initiatives with clear and constant visitor communication. Hotels can take into consideration tips on how to entice eco-conscious vacationers and construct significant relationships with them that may result in long-term loyalty.