Meghann Showers 
Summer time 2022 is probably going to be one for journey and tourism within the US. The next 5 key tendencies are shaping the business, with implications for lodge homeowners.
Leisure journey is booming
Income per accessible room (RevPAR) within the US is outstripping not simply 2020 and 2021 ranges, however more and more 2019 ranges too. RevPAR outperformance is basically pushed by charges. Motels aren’t fairly as full as they had been in 2019, however charges have elevated—the typical each day price (ADR) is round 15 % costlier now than it was in 2019.
Basically, folks like to journey. We requested over 1,000 vacationers within the US what they’d do in the event that they gained the lottery, and spending on journey ranked because the second highest selection (Exhibit 1).
Exhibit 1
This summer time, for a lot of, holidays will occur “it doesn’t matter what”
The survey additionally revealed that persons are involved about macro-economic components similar to inflation, however this isn’t sufficient to cease virtually 70 % of vacationers from taking their trip this summer time (Exhibit 2).
Exhibit 2
Fuel costs are excessive? Individuals will go someplace nearer. Lodge costs prohibitive? They will hunt for a deal. Customers might discover methods to chop again, however these components won’t break their vacation plans (Exhibit 3).
Exhibit 3
Because the survey was performed in June 2022, journey plans have been put in movement. AAA estimated that 42 million folks could be travelling by automotive over the July 4 weekend, a brand new car-travel quantity report for this era—regardless of nationwide common gasoline costs exceeding the $5 mark.
Moreover, lodge occupancy, ADR, and RevPAR figures all exceeded the comparable week in 2019, and TSA checkpoint journey numbers confirmed a 15 % improve for the Thursday and Friday earlier than the July 4 weekend, in comparison with 2019.
Visitors have extra lodging choices than ever
The strains have blurred between lodging classes, and vacationers are looking for lodge, house share, all-inclusive, and open air/glamping choices.
Whereas 78 % of vacationers surveyed say they’re comfy staying in a lodge, solely 61 % are comfy staying in various lodging. The highest 5 causes for staying in a lodge embrace consistency and predictability; security and privateness; handy location; availability of concierge, lounge, restaurant, and/or different facilities; and decrease price. By comparability, vacationers might select various lodging choices as they provide extra space; family facilities; and an genuine or native expertise.
So, the place are these vacationers planning to go? Over half (54%) plan to go to the seashore—a preferred selection amongst 25 to 34 year-olds. The following most certainly vacation spot (32%) is a metropolis / city location, adopted by a mountain / climbing journey (24%).
Loyalty is heating up
On this surroundings of upper costs and elevated selection, efforts to keep up buyer loyalty are intensifying. However the survey exhibits that many vacationers, notably the youthful technology, do not feel they get sufficient worth from loyalty packages, or the packages appear too sophisticated.
There are some options of loyalty packages that matter greater than others: Providing reductions, having the precise footprint so visitors can keep the place they need to, and making it simple to redeem factors are the favorites.
ESG is gaining significance
Whereas 75 % of vacationers surveyed agree that sustainability is vital, solely half would pay further for it. However youthful vacationers are way more keen to pay further for inexperienced initiatives. Such initiatives that at the moment resonate finest with visitors embrace using eco-friendly cleansing provides; alternative of plastic key playing cards with alternate options; lowered use of paper, e.g., digital receipts; and good home equipment and monitoring techniques to optimize power utilization.
5 methods motels might reply to those tendencies
- Encourage “bleisure” stays by highlighting native points of interest and occasions. With leisure booming and enterprise journey recovering, we anticipate to see an increase in bleisure journey.
- Assist visitors discover you after they’re researching their subsequent journey. Motels can put money into their on-line and social media presence to speak with potential visitors early on of their analysis. That is particularly vital as motels face labor shortages and typically reduce on service ranges: talk transparently to ensure visitor expectations are set appropriately earlier than visitors set foot on property.
- In markets with heavy various lodging provide, talk differentiators. Motels can talk what makes them higher, particularly comfort, consistency, and accessible facilities.
- Improve loyalty packages. Motels might must relook at their loyalty packages to ensure they’re addressing new wants, and serving to each frequent and rare visitors take advantage of out of their packages.
- Launch inexperienced initiatives with clear and constant visitor communication. Motels can take into consideration the way to entice eco-conscious vacationers and construct significant relationships with them that can result in long-term loyalty.
