Summer season 2022 is probably going to be an excellent one for journey and tourism within the US. The next 5 key traits are shaping the business, with implications for resort homeowners.
Leisure journey is booming
Income per out there room (RevPAR) within the US is outstripping not simply 2020 and 2021 ranges, however more and more 2019 ranges too. RevPAR outperformance is basically pushed by charges. Inns aren’t fairly as full as they had been in 2019, however charges have elevated—the typical every day charge (ADR) is round 15 % costlier now than it was in 2019.
Basically, folks like to journey. We requested over 1,000 vacationers within the US what they might do in the event that they gained the lottery, and spending on journey ranked because the second highest selection (Exhibit 1).
This summer time, for a lot of, holidays will occur “it doesn’t matter what”
The survey additionally revealed that individuals are involved about macro-economic elements similar to inflation, however this isn’t sufficient to cease virtually 70 % of vacationers from taking their trip this summer time (Exhibit 2).
Fuel costs are excessive? Individuals will go someplace nearer. Resort costs prohibitive? They’re going to hunt for a deal. Shoppers might discover methods to chop again, however these elements is not going to break their vacation plans (Exhibit 3).
Because the survey was performed in June 2022, journey plans have been put in movement. AAA estimated that 42 million folks can be travelling by automobile over the July 4 weekend, a brand new car-travel quantity document for this era—regardless of nationwide common fuel costs exceeding the $5 mark.
Moreover, resort occupancy, ADR, and RevPAR figures all exceeded the comparable week in 2019, and TSA checkpoint journey numbers confirmed a 15 % enhance for the Thursday and Friday earlier than the July 4 weekend, in comparison with 2019.
Friends have extra lodging choices than ever
The traces have blurred between lodging classes, and vacationers are trying to find resort, residence share, all-inclusive, and outside/glamping choices.
Whereas 78 % of vacationers surveyed say they’re snug staying in a resort, solely 61 % are snug staying in different lodging. The highest 5 causes for staying in a resort embody consistency and predictability; security and privateness; handy location; availability of concierge, lounge, restaurant, and/or different facilities; and decrease price. By comparability, vacationers might select different lodging choices as they provide extra space; family facilities; and an genuine or native expertise.
So, the place are these vacationers planning to go? Over half (54%) plan to go to the seaside—a preferred selection amongst 25 to 34 year-olds. The following most definitely vacation spot (32%) is a metropolis / city location, adopted by a mountain / climbing journey (24%).
Loyalty is heating up
On this setting of upper costs and elevated selection, efforts to take care of buyer loyalty are intensifying. However the survey reveals that many vacationers, significantly the youthful technology, do not feel they get sufficient worth from loyalty applications, or the applications appear too sophisticated.
There are some options of loyalty applications that matter greater than others: Providing reductions, having the correct footprint so visitors can keep the place they wish to, and making it simple to redeem factors are the favorites.
ESG is gaining significance
Whereas 75 % of vacationers surveyed agree that sustainability is necessary, solely half would pay additional for it. However youthful vacationers are much more prepared to pay additional for inexperienced initiatives. Such initiatives that at present resonate finest with visitors embody using eco-friendly cleansing provides; substitute of plastic key playing cards with options; decreased use of paper, e.g., digital receipts; and good home equipment and monitoring methods to optimize power utilization.
5 methods motels may reply to those traits
- Encourage “bleisure” stays by highlighting native points of interest and occasions. With leisure booming and enterprise journey recovering, we count on to see an increase in bleisure journey.
- Assist visitors discover you after they’re researching their subsequent journey. Inns can put money into their on-line and social media presence to speak with potential visitors early on of their analysis. That is particularly necessary as motels face labor shortages and generally in the reduction of on service ranges: talk transparently to ensure visitor expectations are set appropriately earlier than visitors set foot on property.
- In markets with heavy different lodging provide, talk differentiators. Inns can talk what makes them higher, particularly comfort, consistency, and out there facilities.
- Improve loyalty applications. Inns might have to relook at their loyalty applications to ensure they’re addressing new wants, and serving to each frequent and rare visitors take advantage of out of their applications.
- Launch inexperienced initiatives with clear and constant visitor communication. Inns can take into consideration tips on how to appeal to eco-conscious vacationers and construct significant relationships with them that can result in long-term loyalty.