Summer Travel Demand Remains Strong, But Many Consumers Are Looking for Ways to Cut Costs

Hospitality Intelligence Report

August 2024

This summer, no one can stand in the way of Americans and their vacations.

Sounds like the tagline to a summer blockbuster, right? With the challenges many families have faced juggling rising costs and jam-packed work schedules, not to mention over-subscribed flights and sold-out hotels, the annual rite of the summer getaway has become an adventure in patience and careful planning.

To get a better sense of how consumers are managing the balance between their finances and their summer travel plans, JD Power surveyed more than 4,000 retail bank customers in the United States about their summer travel plans in May. Below are the key findings.

Hitting the Road                                                    

Nearly three-fourths (74%) of consumers surveyed say they are planning to travel this summer, although a large portion (30%) of them plan to stay close to home. Still, 37% say they plan travel to other areas in the United States and 7% plan to travel outside the U.S. This trend is consistent with data we are seeing across a wide range of JD Power hotel and air travel data. Those under age 40 are more likely than older consumers to have summer travel plans.

Vacation Budgets Shrink

While almost one-third (32%) of those planning summer travel will not make any changes to their usual travel plans this summer, most say they will be finding ways to cut costs.

Predictably, with airfares projected to increase between 3% and 7% in 2024, one third of those changing how they plan to travel say they plan to drive instead of fly this summer (33%). Other cost-cutting moves include changing their ultimate destination (46%), reducing the length of their trips (34%) and changing when they travel (27%).

Younger Travelers More Willing to Splurge

Additionally, only one in five summer travelers (19%) plan to use rewards or pay extra for added luxury on their trips. This proportion rises to 29% among summer travelers under the age of 40, who are far more willing to pay for upgrades compared to older travelers. For some, it seems there is still a willingness to err on the side of more extravagance versus less, perhaps due to continued post-pandemic attitudes of ‘you only live once.’  However, travelers’ willingness to change their plans shows that the industry optimism we’re observing for summer travel is of the cautious type.

Hospitality brands and vacation destinations would be wise to meet consumers where they are financially by tailoring their services to provide a great baseline experience, as opposed to focusing on upselling luxury upgrades. Travelers across every level of financial health will be hitting the road, this summer, and hospitality brands that meet or exceed those travelers’ expectations will earn significantly higher levels of customer satisfaction and brand advocacy.  

Find out More

This Hospitality Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in May 2024. It was authored by Andrea Stokes, hospitality intelligence practice lead at JD Power. Please contact us at the numbers below to connect with Ms. Stokes or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]