April 4, 2023
It’s been said that collecting experiences, not things, is the key to happiness. And new research from Tripadvisor provides many travelers abide by this belief. In fact, they’re prioritizing travel, planning more and bigger trips than before, with accommodations taking up nearly half of their budgets. Here’s what hotel owners need to know in order to capture these travelers’ interest — and bookings.
There’s great news for hotel owners about how travelers are thinking about future trips.
As we look toward the next few years of recovery for the travel industry, we wanted to know: Despite economic volatility and an uncertain geopolitical future, will travelers still want to go? To find out, Tripadvisor conducted a multi-part analysis surveying 4,959 consumers across six countries (U.S., U.K., Japan, Singapore, India, and Australia)
The answer was an enthusiastic yes. Travelers are showing an unshakeable passion to go and explore the world, with demand returning to 2019 levels. 93% of travelers we surveyed plan to travel this year, and more than half (55%) plan to take three or more trips.
This excitement maps over to how they think about their travel budget: 78% of travelers we surveyed plan to spend the same or more on travel in the next year as they did in 2019. And most travelers acknowledge a volatile economy, but say it doesn’t change their travel plans. 95% of respondents said they would rather decrease their spending on other categories in order to save for a vacation.
As the travel industry continues to recover, it’s clear travelers are getting back out into the world. Download the full report here, or read on to learn what hotel owners need to know about how travelers plan and budget their trips today:
When travelers think about their overall budget for a trip, accommodations are one of the key big-ticket spending items. It’s usually the one place they tend to splurge — after all, lodging is the heart of any trip as their “home away from home.” Travelers put a lot of weight on their accommodation decisions, with more than half (51%) saying choosing poorly would be most likely to ruin a trip.
Source: Tripadvisor Travel Beats Report 8/22, N=2,764; AU, IT, JP, SG, UK, US
Q: Which of the following do you feel could ruin a trip?
In fact, one-third of all travelers surveyed typically book accommodations at over $200 a night. For many travelers, it’s an opportunity to treat themselves — with 19% splurging on accommodations over $400 a night. And up to 53% of travelers would spend more than $200 a night for a special occasion, up 20 percent from a typical booking.
This is already playing out in real time. Comparing Tripadvisor search data in January 2023 against the same dates and travel period in 2022, we’re seeing double-digit growth of 25% or more among North American, LATAM, and APAC travelers on the site:
Stays with user-entered dates only, 2 adults for searches made Jan. 25-31, 2023 with check in Jan. 25 – Apr. 30, 2023
Source: Tripadvisor internal data
While travelers are keeping an eye on their wallet, they still want to make their travel experiences special, choosing to forego other expenses instead. It’s up to hotel owners to offer a memorable experience.
If there is one word to describe how travelers feel about the future of travel, it’s “more.” Coming out of the pandemic, travelers now have a luxury of choice — and they’re making the most of it. When we asked travelers what types of travel they were most interested in, they told us they wanted:
Travel is back, cool in a big way. And they’re searching on Tripadvisor to find the perfect place to stay on their next big adventure. If you want to capture travelers where they are, make the most of your Tripadvisor presence. Bring your property to life online with featured photos, videos, reviews, and more — plus a suite of products designed to help hotels stand out and book up.
Source: Tripadvisor, An Economic Portrait of the Traveler, N=4,959; Australia, Japan, Singapore, United Kingdom, United States, India; September 2022
