Dive Brief:

• Despite economic and financial concerns, U.S. consumers are still prioritizing leisure travel spending, according to a recent survey by Deloitte.
• Survey respondents said they are more willing to downgrade on amenities or accommodation class rather than compromise on hotel location.
• Overall, consumers are putting travel ahead of other categories such as restaurants, entertainment and electronics, with Deloitte predicting a strong summer season “barring any further economic volatility.”

Dive Insight:

For U.S. travelers, it’s all about location, when it comes to their hotel bookings. Staying further away from their destination — whether that’s the beach or city center — in order to save money isn’t a priority, according to survey findings from Deloitte’s Global State of the Consumer Tracker, a monthly online survey that targets 1,000 adults. Instead, survey respondents said they are more willing to downgrade on amenities or accommodation class rather than the hotel’s whereabouts.

The survey also found that interest in private accommodation rentals has weakened considerably since early 2022; as health and safety concerns have lessened, pandemic trends, such as demand for short-term rentals, are fading. This supports recent research from MMGY Travel Intelligence, which cited that 70% of survey respondents who are planning a vacation in the next six months intend to stay in a hotel or resort as opposed to alternate accommodations.

And though U.S. consumers continue to report concerns around their savings, with nearly half delaying large purchases, the country’s travel industry recovery is chugging along, according to Deloitte, which attributes the comeback to built-up pandemic demand for vacations.

The survey also found that those who are planning to take a vacation within the next three months are significantly more likely to spend their money on upgraded travel experiences rather than sacrifice in order to save. This reinforces overall findings that consumers are prioritizing travel over other discretionary categories such as restaurants, entertainment and electronics.

In January, Tripadvisor reported similar findings in its “An Economic Portrait of the Traveler” report, with leisure travel accounting for the largest share of global consumers’ annual discretionary budget, matched only by dining. Almost all respondents (95%) said they would rather decrease spending in other categories in order to save for a future vacation.