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As the holiday season approaches, consumer travel is holding steady, but our 2024 Holiday Outlook reveals some shifts in consumer preferences and behavior that may outlast typical New Year’s resolutions.
According to PwC’s 2024 Holiday Outlook Survey, travel trends this holiday season mirror those of last year, with a net 46% of consumers planning trips. This year, 43% are opting for destinations within the US (compared to 42% in 2023), and 8% are planning international travel (versus 7% in 2023).
Nearly three-quarters (73%) of travelers plan to drive — which may be encouraged by falling gasoline prices. More travelers (56% versus 45% in 2023) say they will stay with family or friends, while fewer (39% versus 46%) plan to book brand-name hotels. These travel choices may suggest that people are looking to save money, likely choosing cheaper options to keep their travel costs down while still enjoying their trips.
For many, the journey is as important as the destination, and travelers who are splurging want to be more than satisfied — they want to be swept away. That’s why providers should know what consumers care about and shape their offerings to help meet these ever-evolving expectations.
Industry metrics suggest strong demand
Easing travel and lodging costs, combined with steady airline occupancy rates could be contributing to the stability seen in this season’s holiday travel plans.
A significant portion of consumers are very or extremely concerned about rising travel costs (61%), but this is less than last year’s 68%. This sentiment aligns with recent shifts observed in the Travel Price Index, which shows slowed growth compared to the more significant increases seen in the past few years. Lower travel costs may ease some consumer concerns, but many travelers remain cautious.
The most popular mode of holiday travel is by car, but a considerable number of travelers (45%) will also fly this year. The continued demand for business and leisure air travel is reflected in recent airline load factors, which stabilized at 83%, similar to the 2023 level of 84%. The rate of flight cancellations is also trending below pre-pandemic levels. This may be why just 51% of travelers are very or extremely concerned about possible flight cancellations this year, down from 60% in 2023.
Traveler behavior and spending
Even though their overall spending is down slightly this year, domestic travelers plan to allocate nearly $2,500 on average for gifts, entertainment and travel — about $1,600 more than non-travelers. International travelers plan to spend even more, with typical budgets topping $4,300.
This year, 53% of men plan to travel compared to 40% of women. Consistent with past survey findings, travelers are more likely to be under the age of 45 and higher-earning urban dwellers.
Different generations have varying travel preferences that impact their booking habits. Gen Z (61%) and millennials (54%) are more likely to travel during the holidays. They prioritize digital experiences significantly more than Gen X and baby boomers and are more concerned about the environmental impact of travel. In contrast, Gen X and baby boomers are less likely to travel (40% and 29% respectively) and are more concerned about rising travel costs. By recognizing these preferences, travel providers can better cater to each group, improve satisfaction and build loyalty.
Embracing tech to enhance holiday travel
Whatever their destination or desired experience, travelers increasingly expect hospitality and leisure providers to use technologies that increase efficiency and convenience, including mobile flight check-in, mobile key to access their hotel room and amenities, and online booking. Often, the tech they value most is influenced by how they choose to travel. As companies find themselves serving tech-native travelers, being slow to offer desired technologies may impact loyalty.
Tech preferences vary by generation, which influences their travel experiences. Gen Z and millennials say that having mobile options for flight check-ins and hotel access are important, emphasizing seamless interactions like personalized entertainment and contactless services. Gen X finds mobile check-in important but remains cautious about more advanced features such as biometric security. Baby boomers place less importance on contactless technologies, favoring traditional interactions over automated services. Travel providers can improve their services by adapting tech offerings to suit the different needs of their customers.
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