US Travel Intentions on June 2021 - BVA BDRC
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ClearSight® on Recovery – Introduction The speed and disruption caused by the COVID-19 pandemic is hard to overstate, whether from the direct impact (or timing) of government intervention, the science of a mutating virus and the race against time to vaccinate entire populations, changes to the industry supply-side and distribution channels or shifts in the priorities and preferences of citizens and consumers. Through ClearSight®, our goal is to help organisations make sense of this rapidly changing world and join the dots between how their target audiences live, work, spend and play. In this latest edition of ClearSight® on Recovery, we examine the US summer travel market to assess the prospects of the hotel and travel industry as Americans head into a key travel period. This is the first of a series of reports that will quantify the state of the US travel sector. If you’ve not already signed up to get the latest insights, you can do so here: https://hcontent.bva-bdrc.com/clearsight-usa 2
Executive summary Signs of a strong summer travel season Trip planning and summer vacation Like many endeavors in the United States in mid 2021, intent to engage in For the majority of consumers, trip planning will include using an Online Travel travel and destination-based leisure activities increased dramatically. Agent (OTA), especially for hotels. Gen Z and Millennials are most likely to Good news is especially favorable for domestic travel, visitor attractions want to use OTAs for hotels and flights, while Boomers are least likely to use and cultural destinations. Nearly half of Americans plan to take a OTAs for any travel planning or research. Nearly half of Americans intend to summer vacation and/or stay in paid for accommodation and one third travel at least once during the summer of 2021. Among these summer plan to travel by plane. Millennials and the emerging Gen Z age cohort travelers two-thirds plan to travel by car and about half by plane. Summer are most keen on engaging in travel related activities, but Boomers are 2021 travelers are more affluent and younger than non-summer travelers. As more cautions. Millennials represent more than half of all US a result, this summer season has the potential to be a profitable one with international leisure travelers. more than a third of travelers with household incomes of over $100,000. Hotel guest expectations Paid accommodations: Hotels have the edge Guest expectations of cleanliness for their next hotel stay are high with Despite the buzz about alternative hotel accommodations (e.g. Airbnb), hotels nearly half saying they expect enhanced cleaning regimes and a hotel still dominate share of trip nights with more than half of all summer trip stays brand’s ‘cleanliness guarantee’. Cleanliness expectations are highest and nearly three quarters of all paid stays. The average length of stay in hotel among Boomers and lowest among Millennials. About half of American accommodations was about four nights compared to three nights for hotel consumers have flexible expectations about the availability of hotel alternatives. Across all paid accommodations, the highest number of stay amenities for their next stay. For example, only half of future hotel nights was among Boomers, especially among non-hotel accommodations. A guests expect that self coffee-serving areas, restaurant dining and free majority of 2021 summer travelers are loyal to their preferred hotel brand breakfast will be fully available for their next stay. Further, at least one- with nearly two thirds saying they try to stay at their preferred hotel brands fifth of consumers expect a pool or gym not to be available in time for whenever possible. This strong relationship holds across age cohorts, which their next hotel stay. bodes well for the branded hotel industry. 3
Like many endeavors in YOY change in intent to engage activities in the next 3 months the United States in mid May-20 May-21 2021, intent to engage in 60% 58% N=1000 N=1931 travel and destination- 88% 67% based leisure activities 50% 52% 81% 119% increased dramatically. 40% 47% 45% Good news is especially 38% 109% 35% favorable for domestic 30% 33% travel, visitor attractions 20% 25% 27% 23% and cultural destinations. 21% 16% 10% 11% Includes any 0% destination outside Go on a day out Go on a US Stay in paid-for Visit a Travel by plane Go on an the United States. to a visitor vacation/leisure accommodation museum/art international attraction trip (e.g. a hotel, gallery vacation/leisure Airbnb/VRBO, trip B&B, etc.) YOY percent increase in intent to engage in the next 3 months Q2. Now, for each of the activities below, please indicate when you next intend to engage in each. Total population. 5
Millennials and the Plan to engage in leisure activity in the next three months emerging Gen Z age cohorts are most keen on Ranked by high to low by Millennials engaging in leisure activities, especially a US based vacation/leisure trip. Boomers are more cautious about summer travel with only about a third planning to venture out on a leisure trip. Q2. Now, for each of the activities below, please indicate Significantly higher/lower in comparison to other segments at a minimum confidence level of 90%. when you next intend to engage in each. Among total population 6
Millennials drive the Share of summer travel by ag cohort largest share of summer Gen Z (18 to 24) Millennial (25 to 40) 2021 summer travelers across key travel Gen X (41 to 56) Boomers (57+) travel incidence categories and represent more than half of all US Go on a US vacation/leisure trip 12% 36% 23% 28% 47% international leisure travelers. Stay in paid-for accommodation (e.g. a 12% 37% 24% 26% 45% hotel, Airbnb/VRBO, B&B, etc.) 13% 42% 21% 24% 35% Travel by plane 19% 54% 20% 7% 23% Go on an international vacation/leisure trip 0% 10% 20% 30% 40% 50% Q2. Now, for each of the activities below, please indicate when you next intend to engage in each. Among total population 8
Guest expectations of Enhanced cleaning regimes 45% cleanliness for their next Hotel brand "cleanliness guarantee" 45% hotel stay are high with nearly half saying they Sanitizing hand gel or wipes throughout the hotel 42% expect enhanced cleaning Staff to wear face masks 40% regimes and a hotel Guests to wear face masks 36% brand’s ‘cleanliness The ability to cancel my hotel for any reason 35% guarantee’. Further, one- Enforced social distancing 29% third of consumers expect the ability to Measures in place to prompt social distancing (e.g. signage, staff) 29% cancel their hotel for any Reduced maximum capacity 26% reason. Controlled numbers in each area of the hotel 25% Using your own device as a room key (e.g. keyless entry at hotels) 23% I won't stay in a hotel 3% Q2.7. In general, for your next hotel stay, which of the following do you expect from your hotel? Base: Total sample n=1426 9
Cleanliness expectations Ranked by high to are highest among low by Boomers Boomers and lowest among Millennials, and Older consumers by far are most so too is the ability to concerned about hotel cleanliness cancel their hotel for any reason. Using a mobile device for keyless entry appealed most to Millennials and least to Boomers. N=153 N=465 N=275 N=533 Q2.7. In general, for your next hotel stay, which of the Significantly higher/lower in comparison to other following do you expect from your hotel? segments at a minimum confidence level of 90%. Base: Total sample n=1426 10
About half of American Fully available Partially available Not at all available consumers have flexible expectations about the Self coffee-serving areas/stations 51% 33% 15% availability of hotel amenities for their next Restaurant dining 50% 38% 11% stay. For example, only Free buffet breakfast 50% 33% 17% half of future hotel guests expect that self Grab & go food service (e.g. pre-package food) 50% 36% 15% coffee- serving areas, restaurant dining and Contactless (i.e. mobile device) check-in 46% 38% 15% free breakfast will be fully available for their Pool 44% 36% 20% next stay. Further, at least one-fifth of consumers Gym 36% 37% 28% expect a pool or gym not to be available in time for their next hotel stay. Q2.8. For each of the following hotel amenities, please rate the level of availability Note: some differences in amenity availability or degree that you expect them to be provided for your next hotel stay. between age cohorts were different, however Base: Total sample none had a meaningful impact. 12
For the majority of Total sample OTA usage by age cohort consumers, trip planning will involve using an Online Travel Agent (OTA), especially for hotels. Gen Z and Millennials are most likely to want to use OTAs for hotels and flights, while Boomers are least likely to use OTAs for any travel planning or research. N=1426 N=153 N=465 N=275 N=533 Q3. At any point in your trip planning or research are you likely to use an Online Travel Agent Significantly higher/lower in comparison to other (e.g. Expedia, booking.com, etc. ) for one or more of the following? Please select all that apply. segments at a minimum confidence level of 90%. 13
Nearly half of Americans Time horizon for next US vacation 2021 Summer travelers intend to travel at least once during the summer Car 65% of 2021. Among these Do not intend to engage in this activity 11% summer travelers two- More than a year 13% Flight/airplane 49% thirds plan to travel by from now car and about half by 6 to 12 months 13% plane. 16% Train 12% 4 to 6 months Note: The relatively high proportion of 12% Bus expected/planned 9% 3 months plane travel is likely the result of pent-up 2021 summer demand and as a result 16% 47% 2 months be an overestimate of travelers Ship/boat 5% actual consumer behavior. Within the next 18% month N=907 *Among those who intend to travel in next 3 months N=1931 (i.e. summer travelers) Q2. Now, for each of the activities below, please indicate when you next intend to engage in each. /Q4. What mode of transportation will you be using for this next trip? Please select all that apply. 15
Summer 2021 travelers Household income Age cohort are more affluent and younger than non- summer travelers. As a 39% ↑ 26% ↓ 100K or More 28% ↓ 42% ↑ Boomers (57+) result, this summer season has the potential 32% 50K to LT 100K 23% Gen X (41 to 56) to be a profitable one 24% with more than a third of 34% 25K to LT 50K Millennial (25 to 40) travelers with household 24% ↑ 36% ↑ incomes of over $100,000 18% ↓ Less than 25K 25% ↓ Gen Z (18 to 24) and likely more 10% ↓ 18% ↑ 12% ↑ 8% ↓ disposable income. Within the next 3 More the 3 months Within the next 3 More the 3 months months months 44.6 50.3 Average age Summer 2021 travelers Significantly higher/lower in comparison to other segments at a minimum confidence level of 90%. 16
2021 summer trips will Traveling party size Traveling with children under 18 have a party size of 2.5 travelers and a third will include children under 18. Despite the buzz 2.6 about alternative hotel accommodations (e.g. 2.8 Airbnb), hotels still 2.5 No Yes Total 68% 32% dominate share of trip 2.6 nights with more than half of all stays and 2.1 nearly three quarters of all paid stays. *Among Americans planning to travel in summer 2021. Sample size N=907. 17
2021 summer trips will Share of paid and non-paid accommodation Number of nights away from home have a party size of 2.5 travelers and a third will Share of paid stays 70% include children under Hotel All stays 59% 18. Despite the buzz 5.3 about alternative hotel Hotel alternative - Airbnb, VRBO 10% 4.5 accommodations (e.g. Airbnb), hotels still B&B or guesthouse 4% 5.2 dominate share of trip Hostel 2% 6.7 nights with more than Camper/Recreation 5.5 half of all stays and vehicle/Camping tent 4% Total nearly three quarters of Other paid-for accommodation 6% all paid stays. Non-paid accommodations 16% (friends/family) *Among Americans planning to travel in summer 2021. Sample size N=907. 18
The average length of 2021 Summer travelers Average number of stay nights among users of each stay in hotel accommodation type accommodations was about four nights compared to three nights for hotel alternatives. Across all paid accommodations, the highest number of stay nights was among Boomers, especially among non-hotel accommodations. Among summer travelers N=907 Note: Sample sizes among some accommodation platforms and age cohorts are small Q10. Of these nights away how many nights will you be staying in the following types of accommodation? 19
A majority of 2021 Hotel brand loyalty Hotel brand loyalty by age cohort summer travelers are loyal to their preferred hotel brand with nearly I am loyal to a hotel brand or two thirds saying they try brands and try to to stay at their preferred stay at these properties 4% hotel brands whenever whenever possible possible. This strong I do not have a hotel brand 36% 60% relationship holds across preference and stay at properties age cohorts, which bodes that meet my needs well for the branded Don't know/not hotel industry. sure Among summer travelers N=907 Q11. For your nights in a hotel on this next trip, which of the following best describes your view about your hotel selection 20
Methodology Consumer survey Nationally representative online survey. Data collected over a 7 day period. Details of survey waves: • May 2020 (n= 1,000) • May 2021 (n= 1,931) The data in this report is weighted to be representative of United States. US Census population benchmarks were used in the weighting of the data. 21
Contacts at BVA BDRC Americas Matthew Petrie President matthew.petrie@bva-bdrc.com +1 202 841 5855 Liz Healy Director liz.healy@bva-bdrc.com +1 202 550 0051 22
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