Summary
Holiday Travel Surge
The holiday season is ahead of us, and it’s shaping up to be a busy one as summer’s travel surge will spill into winter, according to PricewaterhouseCooper’s (PwC) annual Holiday Outlook report.
Consumer Spending Trends
“We are still seeing that consumers value experiences and if they’re going to spend money, they’d rather spend it on things like travel and entertainment, and that their intent this holiday season is to absolutely travel,” Jonathan Kletzel, airline and travel practice leader at PwC U.S., told iBestTravel.
The report shows that 47 percent of consumers will hit the road, spending approximately 12 percent more — or about $510, on average — than they did last year. This rise in spending is attributed to rising airfare prices and inflation. Millennials are leading as the biggest travel spenders this holiday season with an average of $670, followed by Gen X at $611 and Gen Z at $447.
Destination Preferences
However, not everyone is jetting off to a faraway destination. Almost 60 percent of U.S. consumers plan to take a trip within their state, while 18 percent will travel outside of the country. This year, destinations such as Mexico, Central America, and the Caribbean are trending among international travelers.
Travel Costs and Consumer Concerns
“Even though we saw an amazing recovery this summer, particularly in Europe and Asia, the geopolitics in these regions continue to be a little bit of a concern,” Kletzel explained. Nevertheless, this is not the primary concern for travelers. The rising cost of travel and gas is at the forefront of their worries.
“When fuel prices go up, a lot of other things go up related to travel,” he added. “Even if you planned your air travel six months ago, you might not know what the rest of the trip will cost during the holidays. You won’t have clarity on hotel, meal, and entertainment prices if you haven’t booked everything in advance. Therefore, there is still significant uncertainty.”
Consequently, more than half of travelers — or 60 percent — plan to redeem rewards to fund their trips this holiday season, according to the survey findings.
For more detailed insights, you can read PwC’s full report at pwc.com.
