Top Travel Trends in 2024
The current high demand for travel shows no signs of slowing down. In May, the Bank of America Institute released a survey showing that 70% of Americans plan to travel this summer, and that household travel spending is up 13% from 2019 levels. The bank’s senior economist, David Tinsley, said the increased spending is not just inflation, but “a good bit of it is volume.”
Another good sign? The Transportation Security Administration set a new single-day screening record on Sunday, July 7, with more than 3 million passengers passing through security checkpoints for the first time ever. The TSA screened a record breaking 12.5 million passengers at airport checkpoints between July 1 and July 5, up from 11.6 million in 2023.
But what are these voracious travelers looking for? Here, Resort Trades has the latest trend data along with analysis from experts in the vacation ownership industry.
The Human Touch
According to a survey by Internova Travel Group, both younger and older travelers are increasingly relying on travel advisors to plan their trips, with nearly 60% expressing a preference for human assistance. Travelers value the expertise and support provided by advisors, especially in unforeseen circumstances, they say. Experienced RCI members are “comfortable, even expert in their knowledge and know-how of when and how to book,” said Nathan Harmon, vice president, North America Marketing, Sales and Customer Experience for RCI. “Many people still prefer to call the contact center and partner with a RCI Travel Guide to plan. Others prefer to use our online tools and engage with our chat bot feature if they have a question. Over the course of time, I believe we’ll continue to see the trend towards more dedicated self-service tools but those will always be powered by our expert Travel Guides.”
Insuring the Trip
As vacations become more expensive, more travelers are recognizing the value of protecting their investment and are turning toward travel insurance. A recent survey found that Millennials and GenZ are actually the most likely of any age group to purchase insurance, with 40% adding protection to their last trip. Jesper Tejsen Lykke, senior sales executive for Trawick International, which provides travel insurance to vacation ownership companies, agrees, saying, “When people are buying more expensive trips they are more inclined to buy cancellation protection. A safari in South Africa can cost more than your mortgage.” However, he’s also seeing demand for post-departure coverage, especially medical coverage, during both domestic and international trips. “If someone has a medical emergency overseas, we can help them find the closest, best hospital to treat them,” he said. “Our experts can speak with the medical team to determine the best course of action.” The very narrow, in-state networks of health insurance today mean that such coverage can be critical for domestic travel, too. “Travel insurance becomes more important because it covers the additional out-of-pocket cost that is not covered by health insurance,” he said.
Younger Travelers Spending More
A recent survey by Interval International identified several notable trends among younger members. “Our developer clients are selling to younger customers, which speaks to the broader appeal timeshares have to the general market,” said Marcos Agostini, Interval International’s executive vice president, managing director. “Typically, these members have careers and families, so vacations are not only an opportunity to spend quality time with loved ones, but to also to disconnect from their daily routine. Vacation time for younger members can be more limited due to their work commitments, so travel provides a much-needed escape. In addition, our younger travelers want to see as much of the world as possible. Interval’s network of top-quality resorts offers them the perfect opportunity to experience their bucket list vacations.”
Resurgence of Drive-to Vacations
On a recent appearance on CNBC, Travel + Leisure CEO Mike Brown said, “There’s more spend at the higher end and there’s starting to be a little bit of pressure at the lower end. Our owners will still go on vacation but rather than take a long-haul flight, they might choose to drive, so we’ll see a lot more drive-to destinations up and down the coast.” Driving instead of flying is the most common way (42%) that summer travelers plan to save money, according to a NerdWallet survey done earlier this year.
A New Wave of Enthusiasm for Cruising and All-Inclusive Resorts
What do cruising and all-inclusive resorts have in common? The ability to pre-plan your spending and be free from constantly reaching for your wallet during a vacation. According to a new study of first-time cruisers released in April by the Cruise Lines International Association in partnership with MMGY Global and Travelzoo, the perceived value for money of cruising has significantly improved among prospective cruisers. In fact, 60% of the respondents said it was a past reason for not booking, whereas only 36% cite it as a current concern. “Cruise continues to be a fast-growing sector of tourism,” Interval’s Agostini said, citing the same survey’s forecast of approximately 10 percent YOY growth in cruising by end of 2024. “At Interval International, our cruise exchange benefit continues to see significant demand with Interval members. And as we add more cruise line partners and grow our cruise offerings and itineraries, we are excited to provide members with even more ways to see the world and maximize their vacation ownership.”
While timeshare resorts in Mexico and the Caribbean have always had success with the all-inclusive concept, Marriott International Inc. has added a dedicated page on its Bonvoy website, demonstrating its increasing demand. “We find that all our members and family types are enjoying all-inclusive and cruise travel,” RCI’s Harmon said. “From family trips to couples on a getaway there’s lots to enjoy in both categories.”
Leisure for Longer
Michelle Meyer, chief U.S. economist at Mastercard Economics Institute, in a recent interview on CNBC, reported that more travelers are staying longer, often extending a work trip with a vacation. “For RCI, because we are introducing more flexibility and options for shorter travels, we are seeing length-of-stay vary,” Harmon said. “While we still see lots of interest on our standard seven-night stays, members have been extending their travels with shorter hotel visits. Road trips are very popular so members may stay three nights here and there on their travels to a seven-night stay at a top destination like Orlando or Vegas.”
Fluffy and Fido, too
According to a 2023 survey by Upgraded Points, two-thirds of pet owners would bring their pet whenever they travel if possible, and 83% of pet owners have reported altering their travel plans to better accommodate their pet’s needs. “Traveling with our furry family has always been something our members have loved to do,” RCI’s Harmon said. “Before the pandemic, there were more limited options but with so many pets finding their forever families while we were all home, we are more eager than ever to bring them with us on our travels. Many of our affiliated resorts have moved to being entirely pet friendly or offering specific units or buildings where pets are welcomed.”
Save the Date
According to a May 22 article in the Wall Street Journal, prices on Airbnb in the Indianapolis area surged following the announcement of dates for Taylor Swift concerts. A Canadian publication recently profiled Edmonton Oilers’ fans traveling in large numbers to cheer on their team in Sunrise, Florida. And Delta Airlines has announced that it is adding special flights for college football’s biggest matchups. What does all this mean for vacation ownership resorts? It’s even more important to ensure that your pricing software stays up-to-date on upcoming events in your destination and reflects increased demand around them.
Glamping Is Here to Stay
A new report from Kampground of America shows that 34% of new campers in 2023 opted for glamping, up from 18% in 2021. The subsector now accounts for 15.6 million new entrants in the past five years. Westgate Resorts continues to garner accolades and media attention for its Westgate River Ranch Resort & Rodeo, where vacationers can stay in “teepees” with refrigerators and faux Conestoga wagons with ensuite facilities. Now, a group that includes timeshare veterans is creating a “soft brand” called Nook Experiences centered around nature and hospitality. “We’re seeing a huge push for people to be in the outdoors,” says Jeff Noonan, vice president of Development and Partnerships. “Our collection of resorts includes one-of-a-kind experiences, upscale glamping, and boutique outdoor hotels. We see owners and operators doing major capital improvements and evolving from campgrounds (bringing their own tents and RVs) to now showing up at the same destination at a glampground with the comforts of a hotel in the great outdoors.” Nook is on track to have over 25 properties by the end of this year, and Noonan foresees the possibility of timeshare developments with similar features being added to the network or making arrangements to use vacation ownership points at Nook properties.
Judy Kenninger heads Kenninger Communications and has been covering the vacation real estate industry for two decades.
