A quarterly consumer survey, launched this year by the U.S. Travel Association (USTA), delves into the traveler experience to identify barriers and points of friction that reduce travel. Mined and evaluated with the help of consulting firm, Ipsos, the findings were combined with findings from a Quarterly Business Travel Tracker created in collaboration with JD Power and Tourism Economics. The goal: to help businesses anticipate and identify consumer behaviors and risks, as well as highlight the best opportunities for growth in travel.
Macroeconomic Conditions: Effects on Consumers
Even elevated inflation has not stopped consumers from spending on travel. The labor market has remained remarkably resilient despite monetary policy to slow the economy. Even with high inflation receding, moderating gasoline prices, an improved supply chain and a strong labor market, most economists still anticipate a mild recession, but many executives are forecasting a “soft landing.”
Travelers are also feeling more confident; 61% of leisure travelers and 69% of business travelers feel good (or better) about their finances in the first half of 2023.
Where We Are Now: Near-Term Expectations
Just over half of all Americans (52%) and 79% of leisure travelers are planning to travel for leisure in the next six months. Nearly one in four Americans (23%) and one-third of leisure travelers plan to travel more in 2023 than they did in 2022. While business investment and spending will likely remain tight this year, executives understand the value of meeting face-to-face and the negative impacts of reduced business travel. Group business travel has the most momentum – 35% expect to spend the same or more than 2019 levels in the next six months.
Analyzing the Challenges: Key Pain Points Impacting Demand
- Nearly 4 in 10 leisure travelers (36%) would travel more in the next six months if the experience was less complicated and stressful.
- Nearly half of Americans (45%) rate the air travel experience as sub-par – thanks to flight delays, cancellations, crowds, congestion, etc.
- The top policies reducing business trips overall involve stricter evaluations of why/who travels. More than one-third of companies (36%) also have enacted new sustainability requirements restricting business travel.
Leaning Into Opportunity: Growing Travel and Improving Experience
A supportive company culture and clients requesting more in-person meetings are key motivators for business travelers, experts say. Secure, seamless travel can also go a long way toward inspiring more travel. Flexible work arrangements and remote work have the potential to create new business travel opportunities.
Source: U.S. Travel Association
