Cost of living is starting to impact vacation plans, while sustainability and personalization emerge as key requirements for today’s traveler
According to a recent study, just over 30 percent of travelers will not go on a vacation this year, with financial concerns being the leading reason; nearly 1 in 3 are willing to pay more for sustainable options
[Boston, US July 18, 2023] – The recent US results to the Travel Trends 2023* study by global consultancy Simon-Kucher reveals that nearly 30 percent will not go on vacation this summer, largely due financial constraints – the cost-of-living crisis is driving consumers to prioritize essential expenses and avoid traveling during the peak season. The study, which included 765 US consumers, also revealed that 51 percent of travelers are booking their vacations well in advance, a shift from previous years. Among this ‘early bird’ segment, more than one-third are driven by fear of inflation of prices.
Leisure travel budgets are growing, but spending is becoming more deliberate
While financial concerns are the leading driver for those who do not plan to book a vacation this summer, 17 percent of lesiure travelers indicated they will not go on a vacation this year. On average, consumers planning to travel expect to spend around 12 percent more on their upcoming 2023 vacation compared to the same trip in 2022.
Business travel is slowing down and trips are getting shorter
Rising costs are putting a strain on business budgets -- around 15 percent of business travelers are not to travel for work, while those who do travel are opting for shorter work trips. Additionally, 46 percent of companies updated their travel policy to encourage travel by train.
Sustainable travel
With sustainability becoming the norm rather than the exception, an average of 33 percent of respondents are willing to spend more for an environmentally sustainable vacation rather than a standard vacation, demonstrating a shift towards sustainable travel. Along with a general preference to travel by train (41 percent) instead of by plane or car, 47 percent are willing to travel more than 8 hours.
“Economic volatility has significantly impacted the ways consumers approach travel. While some industries have benefitted from this evolution in consumer behavior, others are not only searching for immediate solutions but waiting for the next shoe to drop. Ultimately, there are no quick fixes, businesses in the travel industry need to to respond with varied levels of execution and strategies unique to their business and consumer.” Shikha Jain, Partner and North American Head of Consumer.
Complete study findings are available upon request, including country splits.
*About the Study: The Travel Trends Study was conducted during May 2023 by the global consultancy Simon-Kucher & Partners. 4,825 consumers from across seven countries (France, Germany, Netherlands, Spain, the UAE, the UK, and the US) were surveyed on leisure and business travel.
For further information, please contact:
Niki Irby
niki.irby@simon-kucher.com
About Simon-Kucher
Simon-Kucher is a global consultancy with more than 2,000 employees in 30 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy – product, price, innovation, marketing, and sales – based on deep insights into what customers want and value. With 37 years of experience in monetization topics of all kinds, we are regarded as the world’s leading pricing and growth specialist.