Two distinct studies of travel habits show that Canadians and Americans will continue travel despite inflationary headwinds. Another report suggests OTA growth shows no signs of slowing down.
Sunwing Sees Surge
A new study from Sunwing Vacations says travel intent remains strong among Canadians, despite economic headwinds like inflation. Their survey found that 61% of the population plan to travel internationally on a vacation in the next year, while 55% of those are likely to consider an all inclusive vacation package.
While concerns about rising travel and vacation prices due to inflation is cited as a key concern for the vast majority (88%) of Canadians, among those planning to travel internationally, 85% say their travel budget is either the same or has increased since last year, with only 15% indicating their travel budgets have decreased.
The survey said Canadians are using several strategies to save on their trips; travelling during off-peak seasons (60%), booking in advance to take advantage of early booking rates (56%), looking for all inclusive vacation deals which include one upfront price that covers the full cost of the vacation (39%), and setting up a vacation fund (39%).
“Canadians are savvy in how they spend their money, looking for the most value on their purchases and, as our research confirms, travel is no exception,” said Samantha Taylor, Chief Marketing and Digital Officer for Sunwing Vacations Group. “Quality time on vacation is a top priority for Canadians and their families, even in the current economy, and they are willing to make trade-offs to turn their dream vacations into reality.
“They also know there is real value in booking an all inclusive package thanks to transparent, upfront pricing. At Sunwing Vacations, we are incredibly pleased to make sun travel more accessible, with preferred rates from hotel partners, special booking incentives and perks, and with no hidden costs, helping us deliver an exceptional customer experience at unbeatable value.”
Additional survey insights include:
- Residents of British Columbia are the most likely to travel internationally in the next year (73%)
- 39% of households earning under $50,000 per year are likely to travel in the next 12 months, and this figure increases to 74% among households earning $100,000 or more per year
- Québec residents are incredibly value-oriented, with 84% seeking not to overpay for their vacations (compared to the national average of 78%)
- Canadians looking to save for their upcoming vacations are willing to make small lifestyle trade-offs in the lead-up to their vacations, including cooking more meals at home (86%), buying fewer non-essential items (80%) and shopping for sales or using coupons (80%)
- The top perks or motivators that would increase likelihood of booking all inclusive are: complimentary room upgrades (the top motivator for 21% of respondents), free checked bags (17%) and the opportunity to book add-ons like off-resort experiences at a discounted price (14%)
Phocuswright Focuses on Online Growth
Meanwhile, new research from Phocuswright says the global travel market is forecasted to grow between 6-10% per year through 2026. The industry has now exceeded pre-pandemic levels, recording a 24% jump in gross bookings in 2023, and a total spend of $1.5 trillion.
Phocuswright’s Global Travel Market Report 2024 also highlights the growing dominance of online travel, projected to expand at almost 10% between 2023 and 2026. This digital shift is driven by evolving consumer behavior, improved digital infrastructure, and technological advancements. By 2026, online bookings are expected to account for 65% of all travel bookings globally, up from 61% in 2023.
Culinary tourism, cruises and the upcoming holiday season are among the trending topics featured in the latest MMGY Portrait of American Travelers study. An examination of today’s U.S. travel consumers found that nearly 8 in 10 U.S. adults plan to take a vacation in the next 12 months, which represents an increase of 6% compared to the results from fall 2023.
MMGY Reflects a Taste for Culinary & Cruise
“Despite economic uncertainties and global complexities, travel continues to be a major priority,” said Simon Moriarty, MMGY Travel Intelligence’s Vice President of Research and Analytics. “Our survey highlights a marked rise in interest in culinary and cruise experiences, reflecting a trend toward more immersive and meaningful travel. As we head into the busy but lucrative holiday season, marketers should recognize that travelers are planning their trips with increased thoughtfulness and genuine intent.”
Additional highlights:
- Hot Destinations: Hawaii, Florida, Colorado and California remain the top states that attract leisure travelers’ interest. Beach experiences and visiting state or national parks remain consistent as the top two activities of interest for all generations – both gaining in popularity since 2023.
- Generational Differences: Among generations, Boomers anticipate spending the most on leisure travel during the next 12 months, while Gen Xers expect to take the most trips (3.9 on average). Interestingly, Gen Z’s interest in travel has changed course and risen after four quarters of consecutive decline, with 67% now planning to travel for leisure in the next 12 months.
- Culinary Travel: For the second year in a row, the influence of a destination’s culinary scene has grown in importance from the previous year. Although authentic local cuisine is still the most sought-after culinary experience (55%), there is growing interest in high-end culinary experiences such as award-winning restaurants or food and wine festivals.
- Cruising: More than half of active leisure travelers are interested in taking an ocean cruise (58%) or river cruise (52%) during the next two years, while 40% are interested in an expedition cruise. Notably, there is a statistically significant 6% increase in interest in ocean cruises, signaling a promising future for this mode of travel.
- Traveling Abroad: Interest in international travel remains strong, with 8 in 10 active leisure travelers interested in traveling internationally within the next two years (82%). This is up slightly from this time last year (79%).