Inflation Less Of A Drag On Travel Planning

Inflation’s drag on travel planning has eased according to the latest Longwoods International tracking study of American travellers, with the percentage that say inflation is greatly impacting their travel decisions in the next six months dropping to 23%, down from a peak of 32% in March and the lowest level is 2023.

The tracking study also reports that concern about airfare prices is also declining, with 23% of travellers reporting that the cost of flying is greatly impacting their decision to travel in the next six months, down from 31% in January.

Amir Eylon, President and CEO of Longwoods International, said that: “While the battle against inflation is not yet won, travelers are starting to move on, with less focus on this one economic issue.”

And Eylon added: “This is likely the result of the progress that has been made in reducing the inflation rate in the U.S. and the resulting declining media coverage of the issue.”

In fact, the positive impact of tourism advertising and visitation on a destination’s overall image has been well documented by Longwoods’ “Halo Effect” research. Among those travellers who moved to a new location in the past three years, 67% of them reported they had visited their new hometowns as a leisure visitor prior to moving there.

Other highlights include:

• 17% of American travellers say they either have or have planned to boycott a destination due to current issues (government, societal, etc.).
• Among those travellers who moved to a new location in the past three years, 67% of them reported they had visited their new hometowns as a leisure visitor prior to moving there.
• Key economic sentiment indicators are showing some improvement since the beginning of the year with the percentage of American travellers that say inflation is greatly impacting their travel decisions in the next six months dropping to 23%, down from a peak of 32% in March and the lowest level in 2023.  Similarly, concern about airfare prices is also declining, with 23% of travellers reporting that the cost of flying is greatly impacting their decision to travel in the next six months, down from 31% in January.
• Demand to travel is still holding steady with 89% having plans in the next six months, despite economic concerns among travellers.
• While much of the world has moved on from the pandemic, its impact still lingers in travel. While only 11% of American travellers continue to report that COVID-19 will greatly impact their decision to travel in the next six months, only 59% indicate that it has zero influence upon their travel plans moving forward.  In fact, 32% of travellers still say they are changing their travel plans in some way due to COVID-19:  16% still travelling domestic vs. international; 14% still choosing destinations they can drive to over flying; and 10% still choosing rural over urban destinations. With only 4% choosing not to travel, it is clear that while most travelers are now going somewhere, the pandemic has clearly changed how one third of them are travelling.

Go to https://longwoods-intl.com/covid-19 for more.