Americans may be feeling the impact of rising costs, but they are not willing to give up their summer vacations. According to a new survey by the American Hotel & Lodging Association, travelers are finding "creative ways" to stretch their budgets by choosing destinations closer to home, reconsidering their mode of transportation and seeking hotels with amenities like complimentary breakfast and loyalty rewards to help offset costs.
The survey found that while 57 percent of Americans say travel costs more than it did last year, a majority (56 percent) still plan to take a summer trip. Among those feeling the impact of higher prices, nearly seven in 10 (69 percent) say taking a summer vacation remains important to them. The findings suggest that travelers are not canceling vacations, but rather, they are reimagining them.
Key findings from the survey include:
- More than half of Americans (56 percent) plan a summer trip this year.
- Among people feeling the price squeeze, seven in 10 (69 percent) say a summer trip is still important to them.
- When people trim costs, they cut expenses like shopping and dining first.
- Most people who stayed in a hotel last year are booking a hotel again, but are looking for more options or free extras like breakfast.
- Many travelers are staying regional, driving instead of flying, and picking more affordable destinations.
“Summer travel isn’t slowing down. Americans are protecting and prioritizing their vacations and becoming more budget conscious,” Rosanna Maietta, president and CEO of AHLA, said in a statement. “Americans are stretching their dollars, traveling closer to home, taking memorable road trips, and choosing hotels offering amenities that enhance their overall experience.”
Importantly, hotels remain a priority for travelers. When asked where they are cutting back to save money, respondents said they are reducing spending on shopping (43 percent), dining out (39 percent), and entertainment (26 percent) before scaling back on hotel accommodations (24 percent).
For the week of July 5-11, occupancy: average daily rate and revenue per available room all increased according to CoStar.
The findings suggest that value perception may become more important than outright rate reductions. As travelers seek ways to stretch their budgets, hotels that bundle amenities, offer loyalty benefits and clearly communicate value could be better positioned to capture demand while protecting rate.
Amenities are becoming a key driver of guest loyalty, revenue and differentiation. Learn how hotels are using personalized experiences, wellness offerings and smart technology to create memorable stay in Hotel Management's special report, Extras, Reimagined: How Amenities Are Driving Loyalty.