If they’re not scrapping a trip, many vacationers say they are trading down to cheaper accommodations
Aug 19, 2024
While higher-income travelers are still planning international trips, others are scaling back to be more mindful of their spending. Many travelers are now prioritizing overall value and becoming more selective with their bookings.
Key takeaways
- Leisure travel demand is slowing overall, but the trend varies significantly by income level and destination. High-income consumers continue to travel, with a preference for international destinations over domestic options such as theme parks, according to travel industry executives;
- Lower-income travelers face a different situation. “They’ve exhausted their resources,” Hilton CEO Chris Nassetta noted during last week’s earnings call. “Now they’re borrowing more, which leaves them with less disposable income for activities, including travel;”
- In addition, travelers are increasingly booking last-minute trips rather than planning trips two or more months in advance, as Airbnb CFO Ellie Mertz noted during the company’s earnings call.
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