Travel Demand in the U.S. Remains Undeterred by Inflation
New Delhi - RateGain Travel Technologies Limited (RateGain), a global provider of SaaS solutions for travel and hospitality, through its recent data analysis using Adara, shared that the travel demand in the U.S. will continue to surge despite high prices.
Analyzing Adara’s travel-intent data, one of the world’s largest travel data platforms, the report highlights that travel demand in the U.S. has exceeded pre-pandemic levels for both inbound and outbound bookings. Let’s look at how has the demand changed over the past few years.
Summer Travel Comparison over the Years
Outbound Bookings
Outbound international flight bookings for the travel period summer’23 (June 1-Aug 31) are 27% higher for the same period in 2022. The bookings have also exceeded the figures for 2019 for the same period by 26%.
Outbound travel from the U.S. is driven by leisure travel, especially solo travelers. Leisure travel flight bookings for summer’23 are 17% higher compared to the same period in 2022. It is also 8% higher than the bookings for the same period in 2019.
Inbound Bookings
Inbound international Flight bookings to the U.S. are 3% higher in summer’23 compared to the same period in 2022. The bookings are 17% lower than the pre-pandemic demand in 2019.
Inbound international Business Flight bookings to the U.S. are 49% higher in summer’23 compared to the same period in 2022. The bookings are 104% higher than the pre-pandemic demand in 2019. In contrast to the outbound flight bookings which are driven by leisure demand, inbound travel to the U.S. is driven by flight bookings made for business travel.
Where are people traveling?
There is a high demand from the United States to European and Asian destinations this year. A significant driver behind this surge was the strength of the U.S. dollar, which made travel to Europe and Asia comparatively more affordable for travelers from the U.S.
The strong dollar initially made international travel attractive, but the increasing cost of living and rising prices of goods and services may affect travel plans. The changing trends are expected to influence travel behaviors among U.S. leisure travelers. Travelers may opt for shorter trips or prioritize destinations that offer better value for their money. They may also seek more cost-effective accommodations, dining options, and activities.
Domestic leisure travel, particularly in popular destinations like Las Vegas, will serve as a significant driver for inbound tourism in the United States. Additionally, an increase in business arrivals from Europe is anticipated, contributing to the growth of the U.S. travel market. Furthermore, there is an expected upsurge in travel spending in the U.S. markets compared to the previous year.
Travelers could also explore alternative destinations that offer similar experiences as Europe but at a lower cost. Mexico and Portugal have thus enjoyed a high share of bookings as cost-effective destinations from the U.S.
As the summer travel season approaches, travel companies and service providers must adapt to these changing trends. Offering competitive pricing, value-added services, and attractive packages could attract U.S. travelers who are more conscious of their travel budgets. Furthermore, promoting domestic travel options might be beneficial, as travelers may opt for local destinations that offer unique experiences and cost savings.
Adara’s travel-intent data platform and solutions, powered by over 270+ brands with over 24 billion data elements and 1.5 billion digital identities, is used by leading airlines, hotel chains, tourism organizations, OTAs as well as luxury retailers to segment their audiences better and drive higher ROI on their marketing spends.
You can read the full report here.
To request a custom report for your region, please visit Adara’s Customer Intelligence Center.
About RateGain
RateGain Travel Technologies Limited is a global provider of SaaS solutions for travel and hospitality that works with 3100+ customers and 700+ partners in 100+ countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.*
RateGain today is one of the world's largest processors of online hotel transactions. RateGain is also world's largest aggregators and processors of travel pricing data for the hospitality and travel industry and has one of the world's most comprehensive travel intent data. Founded in 2004 and headquartered in India, today RateGain works with the Top 23 of 30 Hotel Chains, the Top 25 of 30 Online Travel Agents, and all the top car rentals, including 8 Global Fortune 500 companies, in unlocking new revenue every day.* For more information, please visit www.rategain.com.
*
As of September 30, 2023.
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