Summer 2022 is possible be a good one for travel and tourism in the USA. The following five key trends are shaping the industry, with implications for hoteliers.

Leisure travel is booming

Revenue per available room (RevPAR) in the US is exceeding not only 2020 and 2021 levels, but increasingly 2019 levels as well. RevPAR’s high performance is primarily driven by rates. Hotels are not as full as they were in 2019, but rates have risen – the average daily rate (ADR) is about 15 percent more expensive now than it was in 2019.

Basically, people love to travel. We asked over 1,000 US travelers what they would do if they won the lottery, and spending on travel ranked as the second highest choice (Exhibit 1).

While short-term travel beyond this summer is not yet clear, we have faith in one enduring truth: everyone loves to travel.
We strive to provide individuals with disabilities equal access to our website. If you would like information about this content, we will be happy to work with you. Please email us at: [email protected]

This summer, for many, vacations will happen “no matter what”

The survey also found that people are concerned about macroeconomic factors such as inflation, but this is not enough to stop almost 70 percent of travelers from taking their vacation this summer (Exhibit 2).

Three words define travel this summer: No matter what.
We strive to provide individuals with disabilities equal access to our website. If you would like information about this content, we will be happy to work with you. Please email us at: [email protected]

Are gas prices high? People will go somewhere closer. Are hotel prices prohibitive? They will seek a deal. Consumers may find ways to cut back, but these factors will not derail their vacation plans (Exhibit 3).

Inflation may cause some travelers to stay closer to home - although this is not expected to significantly disrupt holiday plans.
We strive to provide individuals with disabilities equal access to our website. If you would like information about this content, we will be happy to work with you. Please email us at: [email protected]

Since the survey was conducted in June 2022, travel plans have been set in motion. AAA estimated that 42 million people would drive over the July 4th weekend, a new record for car travel volume for the period — despite national average gas prices exceeding the $5 mark.

Additionally, hotel occupancy, ADR and RevPAR figures all exceeded the comparable week in 2019, and TSA checkpoint travel numbers showed a 15 percent increase for the Thursday and Friday before the July 4 weekend. compared to 2019.

Guests have more accommodation options than ever


Travel insights and trends with McKinsey

The lines have blurred between accommodation categories and travelers are looking for hotel, home sharing, all-inclusive and outdoor/camping options.

While 78 percent of travelers surveyed say they are comfortable staying in a hotel, only 61 percent are comfortable staying in alternative accommodations. The top five reasons to stay in a hotel include consistency and predictability; security and privacy; suitable place; availability of concierge, lounge, restaurant and/or other facilities; and lower cost. In comparison, travelers may choose alternative accommodation options as they offer more space; household appliances; and an authentic or local experience.

So where do these travelers plan to go? Over half (54%) plan to go to the beach – a popular choice for 25 to 34 year olds. The next most likely destination (32%) is a city/urban location, followed by a mountain trip/hike (24%).

Loyalty is heating up

In this environment of higher prices and increased choice, efforts to maintain customer loyalty are intensifying. But the survey shows that many travelers, especially the younger generation, feel they don’t get enough value from loyalty programs, or the programs seem too complicated.

There are some features of loyalty programs that matter more than others: Offering discounts, keeping track of how guests stay where they want, and making it easy to earn points are favorites.

ESG is gaining importance

While 75 percent of travelers surveyed agree that sustainability is important, only half would pay extra for it. But young travelers are much more willing to pay extra for green initiatives. Such initiatives that currently resonate best with guests include the use of environmentally friendly cleaning products; replacing plastic cards with keys with alternatives; reduced paper use, e.g. electronic invoices; and smart appliances and monitoring systems to optimize energy use.

Five ways hotels can respond to these trends

  1. Encourage “stop by” stays by highlighting local attractions and events. With leisure booming and business travel recovering, we expect to see an increase in leisure travel.
  2. Help visitors find you when they research their next trip. Hotels can invest in their online and social media presence to communicate with potential guests early in their search. This is especially important as hotels face labor shortages and sometimes reduce service levels: communicate transparently to ensure guest expectations are set properly before guests even set foot on the property.
  3. In markets with heavy alternative accommodation supply, communicate differentiators. Hotels can communicate what makes them best, especially comfort, sustainability, and available amenities.
  4. Improve loyalty programs. Hotels may need to review their loyalty programs to ensure they are addressing new needs and to help frequent and infrequent guests get the most out of their programs.
  5. Launch green initiatives with clear and consistent communication with guests. Hotels can think about how to attract environmentally conscious travelers and build meaningful relationships with them that will lead to long-term loyalty.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *