According to the latest Longwoods International tracking study of American travelers, the percentage that say inflation is greatly impacting their travel decisions in the next six months has dropped to 23%, down from a peak of 32% in March and the lowest level is 2023. Similarly, concern about airfare prices is also declining, with 23% of travelers reporting that the cost of flying is greatly impacting their decision to travel in the next six months, down from 31% in January.
Inflation and expensive travel prices are still impacting travel planning, but it appears as if demand will outstrip fears in the next six months.
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“While the battle against inflation is not yet won, travelers are starting to move on, with less focus on this one economic issue,” said Amir Eylon, President and CEO of Longwoods International. “This is likely the result of the progress that has been made in reducing the inflation rate in the U.S. and the resulting declining media coverage of the issue.”
According to this survey 89% of respondents plan on traveling in the next six months, which still shows robust demand continues in the travel industry.
The positive impact of tourism advertising and visitation on a destination’s overall image has been well documented by Longwoods’ “Halo Effect” research. Among those travelers who moved to a new location in the past three years, 67% of them reported they had visited their new hometowns as a leisure visitor prior to moving there.
It appears that a positive reputation and pent up demand means that only 21% of respondents expect that their personal financial situation will impact their decision to travel in the next six months.
The survey, supported by Miles Partnership, was fielded July 19, 2023 using a national sample randomly drawn from a consumer panel of 1,000 adults, ages 18 and over. Quotas were used to match Census targets for age, gender, and region to make the survey representative of the U. S. population.
The bottom line here is that while Americans are worried about the economy and their personal finances, the urge to travel is still high. If this research provers correct, the travel industry should remain very busy and expensive over the next six months.
