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Everyone enjoys going away on vacation. Having something to look forward to at the end of a busy working period is the mental boost a lot of us need to keep our wheels in motion. So when that enjoyment was thrown into question in early 2020, a lot of us became understandably concerned about what the future of travel might look like.
A few years past the pandemic, where does the travel sector find itself? In this short statistical breakdown, we’re going to assess what the current landscape looks like for the hotel, airline, and travel industries. Make sure to keep these handy facts in mind before you plan your next vacation (and how to get there).
Hotel Statistics
The pandemic had a big impact on a lot of sectors in 2020 – and those in the hotel industry were certainly affected. However, encouraging figures show that the sector as a whole is rebounding strongly.
Nominal room revenue (the amount made before overhead costs are factored in) is expected to reach $197.48 billion in U.S. hotel rooms in 2023 – up from $170.35 billion in the pre-pandemic days of 2019.
The financial figures are encouraging for the most part, but do they represent where the industry currently finds itself? Read on to discover what the landscape of the hotel business looks like in 2023.
The 3 primary factors that Americans took into account when booking a room were the price, location, and overall cleanliness and safety procedures.
When it comes to overall cleanliness and safety procedures, 29% of guests see room cleaning as a priority in 2023 (up from 24% in 2020).
14% of guests are also concerned about their budget in 2023, which is another increase from 10% in 2020.
One area where concerns have dipped is being close to other guests. 17% of people worried about this in 2020, but just 8% cite this as their biggest concern in 2023.
Surprisingly, despite hotels having a reputation more closely associated with a relaxing break away, as many as 53% of people say they’re likely to travel for business in 2023.
Just 36% of people say they’re likely to travel for leisure.
Hotels still remain the most popular option for accommodation when going on vacation. 52% of respondents they’ll stay at a hotel or similar type of accommodation, whereas just 31% would stay with friends or family.
As many as 84% of guests would be somewhat interested in “bleisure travel,” where a work trip gets extended for the purpose of leisure.
*All stats taken from AHLA 2023 travel outlook report
Airline Statistics
Airlines were one of the most heavily impacted businesses during the height of the pandemic. Flights were routinely canceled, with fewer services running than at any other point in recent history. How has the airline industry rebounded since the bust of 2020?
With the talk of inflation looming over the heads of Americans, travel might be one of the top luxuries cut to help stick to budgets, but some stats show that Americans are eager to get out of their homes and hit the air or road.
Discounts for early booking (32%), a discount for buying a full package (32%), and a discount for booking last minute (22%) are other incentives.
Travel loyalty and rewards programs also continue to be popular. Millennials are the demographic who use these services the most (48% are members of a program), followed by Gen Z (42%), and baby boomers (41%).
Virtual reality is beginning to play a part in people’s travel choices, with as many as 43% of vacationers saying they would use the technology as a springboard for inspiration.
The most popular type of vacation for 2023? Research by Booking.com found that nostalgic vacations were top of the list, with 88% of people agreeing that this was an important part of where they’d choose to visit.
Next on the list of primary motivators for choosing a vacation were community-minded trips (80%), laid-back luxury (78%), getting out of their comfort zone (73%), and a vacation that was centered around nightlife (72%).
Most importantly of all, as many as 63% of travel industry experts predict overall industry figures to reach and exceed pre-pandemic levels by the end of 2025.
Final Thoughts
It goes without saying, the travel and hospitality industries were hit hard during the pandemic. Jobs were lost, which led to staffing shortages, and travel was restricted, which led to huge revenue losses for airlines and hotels. As Americans are starting to get back into the swing of traveling, we now have inflation and the rising cost of gas, airline tickets, hotel rooms, etc. As you head out on your next trip, whether that be for business or pleasure, it’s always best to pack your patience.
Featured Image Credit: Prostock-studio via Adobe Stock
Founder and CEO of Upgraded Points, Alex is a leader in the industry and has earned and redeemed millions of points and miles. He frequently discusses the award travel industry with CNBC, Fox Business, The New York Times, and more.
This bonus value is an estimated valuation calculated by UP after analyzing redemption options, transfer partners, award availability and how much UP would pay to buy these points.