Deloitte: Despite some Americans' financial concerns, leisure travel continues its upward climb

• Leisure travel intent remains strong as 50 per cent of Americans surveyed plan to travel and stay in paid lodging this summer, up from 46 per cent last year.

• Air travel takes off: More than half (51 per cent) of leisure travelers plan to fly this summer, and 22 per cent of flyers will do so internationally, up from 14 per cent last year.

• Financial concerns persist as half of Americans who are not traveling (50 per cent) say they will stay home because they can't afford to travel.

• The average spend for a marquee trip declined: surveyed travelers expect to spend $2,930 this year, compared to $3,320 in 2022 on their longest summer trip. Potential drivers for this downtrend include an expanding pool of travelers, total spend spread across more trips, and financial concerns.

• Among those who plan to spend more than in 2022, nearly 3 in 10 say they are making up for missed travel (28 per cent) or taking a bucket list trip (32 per cent).

• As flexible work arrangements continue, 1 in 5 travelers plan to work during their longest trip. These laptop luggers also plan to take more trips, albeit shorter ones, during the summer months.

Why this matters

Whether they are making up for lost time, spending their savings, or placing higher priority on experiences and memory-making, some Americans continue to find reasons to prioritize travel — even as their financial concerns persist. In its new report, "The Experience Economy Endures: 2023 Deloitte Summer Travel Survey," Deloitte examines the trends and preferences that could guide leisure trips this season. The report is based on a survey of 3,583 Americans fielded March 31-April 6, 2023. Among those, 2,262 qualified as travelers, and a smaller subset of 1,957 travelers who said they would stay in paid lodging, rather than only with family or friends, completed the longest version of the survey.

Americans make room for leisure travel

Leisure travel intent continues to rise as some Americans find room in their budgets to get away. This year, travel may see a jump in motivations suppressed by the COVID-19 pandemic, such as special events and romantic getaways.

• Half of Americans surveyed (50 per cent) plan to travel and stay in paid lodging this summer, up from 46 per cent in 2022 and 41 per cent in 2021, demonstrating ongoing optimism for leisure travel.

• Travelers are planning to take an average of three trips this summer, up from two trips in 2022. This may be one reason that marquee trips are getting shorter: 38 per cent of travelers say their longest trip will last a week or more this summer, down from 68 per cent in 2022.

• Travelers will take 61 per cent of their marquee trips by July, however roads and skies may be busy all season as nearly half (48 per cent) of all summer travel is slated for August or September.

• Americans surveyed are slightly further along than they were last year in booking their marquee trips: 36 per cent completely booked their longest trip as of March 2023, compared to 33 per cent who did the same in 2022.

• Built-up pandemic demand still seems to shape 2023 summer travel: 1 in 5 say they're taking trips to make up for getaways lost during the pandemic.

• Cities (37 per cent) are ahead of beaches (34 per cent) as the top destination for domestic flyers, followed by the great outdoors (10 per cent).

• While most travelers surveyed (64 per cent) believe climate change is an emergency, climate change sentiment shows little impact on summer travel behaviour, including the planned number of trips, distance and budgets.

Many travel products prepare for take off

With pandemic-related international restrictions lifted for months now in much of the world, more Americans have been able to travel overseas, thus driving up air travel intent. More Americans also expect to stay in hotels, as private rentals keep trending toward younger travelers.

• Overall, more travelers plan to fly for their marquee trip than last year (51 per cent in 2023, versus 46 per cent in 2022).

• More than one-third (37 per cent) of air travelers will fly to international destinations, up 10 percentage points from 2022. Significantly more are venturing to Europe (57 per cent, up eight percentage points from 2022), compared to closer international destinations like Mexico and the Caribbean (21 per cent, down seven percentage points).

• The number of travelers willing to pay for a more comfortable flight experience, including first or business class or other upgrades, is down (39 per cent in 2023, versus 54 per cent in 2022).

• While price, deals and discounts are paramount for domestic travelers (71 per cent), choosing an airline does not seem to be all about finding the lowest fare. Half of international flyers cite factors like customer service (55 per cent) and loyalty programs (50 per cent) as very important in their airline selection.

• With the rise in air travel, fewer Americans surveyed will hit the road this summer: 53 per cent will take at least one road trip (at least 100 miles from home), down from 64 per cent in 2022. Nearly half (46 per cent) will drive their own vehicle, and 13 per cent plan to drive a rental vehicle.

• Three in 4 travelers (73 per cent) plan to only stay in hotels during their longest summer trip, while 13 per cent plan to only stay in private rentals; 8 per cent intend to mix these accommodation types during the trip. More than half (51 per cent) of travelers overall expect to stay in full-service hotels.

• Slightly more travelers are opting for limited-service hotels compared to last summer (26 per cent in 2023, versus 23 per cent in 2022), while booking intentions for more expensive destination resorts fell (15 per cent in 2023, versus 19 per cent in 2022).

Financial worries keep some Americans grounded

The health concerns that may have kept many from traveling during the pandemic have significantly diminished, cited by just 8 per cent of non-travelers as reasons not to travel, compared to 33 per cent in 2022. Further, the possibility of disruption in the form of delayed or cancelled flights was cited by just 6 per cent of non-travelers, a significant decline from 18 per cent over the winter holidays. Instead, roughly 40 per cent of Americans surveyed feel financially worse-off compared to a year ago, according to the "Deloitte Global State of the Consumer Tracker," and this worsening financial sentiment may impact travel intent.

• Financial concerns remain high as half of non-travelers (50 per cent) cite affordability as a reason they will stay home.

• Budgets for marquee summer trips are on the decline as travelers plan to spend $2,930 on their longest summer trip, down from $3,320 in 2022 and $3,440 in 2021. This trend has a few likely drivers: travelers spreading their spend across more trips; a larger traveler pool including more typical spenders, as opposed to a smaller pool in 2022 that may have over-indexed on avid travelers and high spenders; and less financial confidence due to prolonged inflation and depletion of savings.

• Roughly 1 in 4 summer travelers (24 per cent) feel their finances took a turn for the worse over the past year, however, they are making efforts to protect their marquee getaways.

• Among those who plan to spend less compared to 2022, 59 per cent cite financial concerns. Among those who plan to spend more, 4 in 10 attribute the increase to higher travel prices.

Workplace flexibility continues to drive travel

Amid the possibility persistence of work-from-home and other flexible work arrangements, mixing work with leisure travel remains a consistent trend. Not only does it seem to enable laptop luggers — travelers working (at least partially) on their marquee summer trip — to travel more throughout the summer months, it may enable trips across the season even for those who do not plan to work on their marquee trip.

• Approximately 1 in 5 (19 per cent) summer travelers plan to work, at least partially, on their marquee trip.

• Mixing work and travel is more prevalent among younger and wealthier travelers: Half of 18-to-34-year-olds plan to work on vacation, as do 39 per cent of those reporting income of more than $100K per year.

• Laptop luggers are traveling more throughout the summer. They plan to take 3.8 trips compared to 2.9 trips by disconnectors (travelers not working on their marquee summer trip). However, their marquee trip is shorter: 1 in 5 plan to travel for up to three nights, and 44 per cent plan to travel for four to six nights.

• Laptop luggers say 56 per cent of all their summer trips are possible due to workplace flexibility. Four in 5 are also able to extend their marquee trip: Half are adding one to two travel days, and another quarter are adding three to six days.

• Even for disconnectors, 1 in 5 summer trips are enabled by remote work, likely as a result of others in their travel party working or as a contingency for their own potential work requirements.