One of the biggest concerns for the global travel industry’s recovery coming out of the pandemic lows has been inflation and how it would affect people’s intent to travel. While summer looks like it will be a big one for the travel industry, here is some early survey data from Tripadvisor that people are willing to sacrifice other non-essentials for their plans to travel, particularly domestic travel.
From Tripadvisor, surveys conducted in United States, United Kingdom, Australia, Japan, and Singapore show while travel behaviors might change for some as a result from June-August (shorter trips or preference for domestic travel), consumers across the globe are refusing to give up their desire to vacation or holiday, especially in the Northern Hemisphere during the summer months. More than a third of global respondents report they intend to travel more in 2022 than they did in 2021, which bodes well for the ongoing travel recovery.
Inflation is a significant concern for the majority of respondents within the survey, with 74% reporting they were “extremely” or “very” concerned about the rising costs of goods and services.
Continuing inflation will likely affect non-essential spending habits: 79% said they would spend less on non-essentials if prices continue to go up:
When it comes to cutting down on non-essential spending, dining out and clothes top the list (items consumers will cut down on the most):
On the other hand, fewer people plan cuts to domestic travel, TV/music subscriptions, and international travel than other options (items consumers will cut down on the least):
- United States: international travel (37%) and domestic travel (38%)
- United Kingdom: domestic travel (35%) and TV/music subscriptions (45%)
- Australia: domestic travel (37%) and TV/music subscriptions (39%)
- Japan: TV/music subscriptions (22%) and technology purchases (32%)
- Singapore: domestic travel (26%) and TV/music subscriptions (38%)
In fact, those surveyed would sacrifice a range of non-essentials to fund their next vacation:
- United States: food deliveries (57%) and nights out (54%)
- United Kingdom: nights out (60%) and dining out (57%)
- Australia: food deliveries (62%) and nights out (60%)
- Japan: food deliveries (59%) and gym membership (58%)
- Singapore: Entertainment (attending gigs/concerts) (56%) and gym membership (54%)
Not surprisingly, rising costs will have some effect on travel this summer: 33% will likely take shorter trips, and 32% may travel closer to home:
|Country||Shorter Trips||Close to Home|