Holiday travel remains steady: PwC

GLOBAL REPORT – PwC has released its 10th annual
Holiday Outlook, which reveals fewer consumers are planning international trips
this year and 56% of travelers are to stay with family and friends (+11% from
2023).

PwC reported that people are generally less stressed about
travel concerns this year with concerns around rising travel costs (61% in 2024
versus 68% in 2023), gas prices (58% versus 65%), rising hotel costs (54%
versus 61%), flight cancellations (51% versus 60%) and long delays at
check-in/security (50% versus 58%) decreasing compared to last year.

In addition, Gen Z and millennials are driving holiday
travel spending. Millennials are planning to spend $751 (+12% from 2023),
while Gen Z is planning to spend $639 (+42% from 2023). Gen X is planning to
spend $481 (-21% from 2023) and Baby Boomers are planning to spend $321 (+2%
from 2023).

Here’s a summary of PwC’s findings:

Holiday travel remains steady, with 46% planning to
travel this season (compared to 47% in 2023).

• 39% of consumers who plan to travel within the
  U.S. and 50% who plan to travel internationally during the holidays also plan
  to spend more overall – on gifts, travel and entertainment – throughout the
  season compared to all other consumers.
• Domestic travelers plan to spend $2,500, while
  those planning to travel internationally have budgets topping $4,300.
  Non-travelers are expected to spend ~$900.
• A striking 55% of men plan to travel this year,
  compared to 42% of women. Men also lead 2024 holiday spending, increasing their
  budgets by 13% compared to last year. Men are expected to spend $2,018, $714
  being spent on travel.

People are generally less stressed about travel
disruptions this year.

For consumers, levels of concern around the following have
dropped compared to 2023:

• Rising travel costs (61% in 2024 versus 68% in
  2023)
• Gasoline prices (58% versus 65%)
• Rising hotel costs (54% versus 61%)
• Flight cancellations (51% versus 60%)
• Long delays at check-in/security (50% versus
  58%)

Though concerns about travel disruptions have eased since
last year, costs and budgets remain top of mind.

• 85% of consumers are cutting back on
  discretionary spending, including 31% planning to cut back on trips and
  vacations compared to last year.
• 56% of travelers are opting to stay with friends
  and family this year, an 11% increase compared to 2023. This cost-effective
  option is particularly popular among those feeling the economic pinch, with 63%
  of consumers who plan to spend less this holiday season choosing this accommodation.

Shifting travel trends signal new opportunities for
airlines and hotels.

• Gen Z and millennials are driving holiday travel
  spending. Millennials are planning to spend $751 (+12% from 2023), while Gen Z
  is planning to spend $639 (+42% from 2023). Gen X is planning to spend $481
  (-21% from 2023) and Baby Boomers are planning to spend $321 (+2% from 2023).
• This growing pool of Gen Z and millenials who
  are driving travel spending reveals a critical opportunity for airlines and
  hotels to enhance mobile offerings as they’re looking for tech to increase
  efficiency and convenience. Contactless hotel check-in, keyless room entry and
  online booking are high on traveler wish lists, streamlining their journeys
  from start to finish.
• Sustainability remains important to millennials
  and Gen Z, with 75% of millennials and 67% of Gen Z saying sustainable travel
  is important, compared to 56% of Gen X and 35% of Baby Boomers.