Household journey demand seems to be cooling, examine reveals

A brand new examine reveals indicators of softening household journey demand, with affordability cited as a major issue.

Analysis from the Household Journey Affiliation’s annual survey marks a slight however consecutive decline in household journey, with 81% of respondents saying they had been doubtless or very prone to journey with their youngsters within the subsequent 12 months. Whereas that’s down 4 proportion factors from 2022 and seven factors from 2021, it’s nonetheless increased than it was in 2019 (70%). Nonetheless, it’s decrease than the height in 2015 and 2016, when 93% mentioned they had been doubtless or very prone to journey with their youngsters.

Attainable causes for the softening of household journey demand, in line with Peter Bopp, head of analysis for the affiliation, are that many households have already taken journeys over the previous two years and the preliminary pent-up journey demand from the pandemic has began to fizzle out.

However there are additionally indicators that affordability, recognized as the highest problem to household journey by 59% of respondents, is beginning to change travel-planning behaviors and influence demand.

“I feel what we’re seeing now with 81% [intent] is what I name extra of a steady stage,” Bopp mentioned. “Inflation in all probability performed a job, and journey is a discretionary expense. They’re in all probability eager about the household funds.”

Affordability has constantly been the highest concern and problem for households planning journeys, Bopp mentioned, however not a deterrent. As a substitute, increased costs and inflation are making dad and mom extra conscious of what they’re paying for journeys and the worth for the cash. 

Half of the dad and mom surveyed within the examine mentioned they’d keep away from motels and airways that cost additional charges and would pay nearer consideration to cancellation and refund insurance policies. Round 36% of fogeys mentioned they’d reduce on eating bills, as nicely.

Intent on spending extra on household journeys, whether or not home or worldwide, is down this yr in comparison with 2022. Most households (76%) are nonetheless planning to take worldwide journeys, the examine discovered, however fewer plan to spend as a lot on household journeys subsequent yr. 

Nonetheless, Bopp mentioned dad and mom are anticipating worth will increase, and intent to spend for 2024 comes all the way down to want to spend extra and having to spend extra.

“We’ve proof that households are extra aware or conscious of upper costs which might be pushed by inflation, whether or not that is lodging, transportation, meals, and so forth.,” Bopp mentioned. “Worldwide journey prices extra. A part of it’s a keen improve in spending and a part of it’s a reasonable improve in spending primarily based on what their expectations are.”

The 2023 Household Journey Survey was produced in partnership with New York College’s Jonathan M. Tisch Heart of Hospitality and Edinburgh Napier College, utilizing participant lists supplied by the Shubert Group, Telecharge and Trafalgar. 

The survey polled greater than 3,300 dad and mom and grandparents over the summer time about their journey plans, behaviors and attitudes. A majority of the respondents recognized as white, and amongst dad and mom, 45% had family incomes of $150,000 or extra.