It has been a stellar yr for the travel industry, in line with Morning Seek the advice of.
The market research company, in a latest report entitled “2023 Holiday Travel Trends,” summarized the yr by stating: “leisure volume soared, airplanes were packed, and hotel bookings were high.”
But heading into the year-end peak travel season, consumers are showing increased price sensitivity to flight, hotel and vacation rental bookings, in line with the report.
More individuals are using rewards and points earned from hotels (+4%), airlines (+5%) and bank cards (+9%), in comparison with 2022 holiday travel, to subsidize all or a part of their trips, in line with Morning Seek the advice of.
“The industry may be very healthy right away. We’re hitting record revenues in each airlines and hotels right away,” Tim Hentschel, CEO of the booking website HotelPlanner, told CNBC’s “Squawk Box Asia” on Monday.
But there are still deals available, he said — just not at the luxurious level.
“Luxury travel right away is at an all-time high … High net price individuals are flush with money right away, and with rates of interest rising, obviously they’ve more disposable income,” he said. “There is a huge rush on the market for all things luxury — five star goes higher and better.”
Bargains may be present in the lower hotel categories, he said because “demand is definitely down in one- and two-star hotels.”
One other tip, said Hentschel, is to search out secondary spots.
There “are jewels on the market… We get to major cities on a regular basis for conference and work travel. So taking your vacation off-the-beaten-path, not only is more exciting, nevertheless it can also result in nice savings,” he said.
Hentschel spoke to CNBC through a video call from a ski vacation in Trisul, Norway — a destination that is lesser known than the Alps, he said.
“I didn’t even wish to say Trisul … it gets increasingly busy every yr. And so now that I’ve said it on TV, possibly more people might be coming here, and I’ll have to seek out one other secondary ski destination,” he said.
Budgeting is big this Christmas
American travelers say they plan to travel more this winter, in comparison with 2022, but budgeting is a large think about their travel decisions, in line with a survey published by Vacasa in November.
Some 88% of travelers have shifted their travel plans to lower your expenses by:
- driving as a substitute of flying – 34%
- searching for special deals – 27%
- spending less at a destination – 27%
Nearly one in three travelers are staying in rental homes this winter, with greater than half (58%) saying that they supply higher value and more room, the survey showed.
Greater than two-thirds are driving to their destinations this season, in line with the survey.
Those that are flying will probably want to avoid booking air travel on Dec. 26. It’s expected to be the costliest day for each domestic and international return flights this Christmas, in line with the travel app Hopper.
