In its latest tracking study of American Travellers, Longwoods International reports that the current strong demand for travel may be in peril because of concerns about jobs, inflation and the economy.
About half of travellers reported that concerns about their personal financial situation will impact their travel decisions in the next six months.
And the percentage of travellers who say that economic concerns will greatly impact their upcoming travel has jumped from 23% in late August to 30% in early January.
Amir Eylon, President and CEO of Longwoods International, observed that: “News of layoffs, higher interest rates and rising prices is taking its toll the confidence of travellers. While 2023 is off to a great start, the health of the economy is the key to sustained growth throughout the new year.”
After steady declines in traveller anxiety about gas prices from July through November, they reported increased concern about the price at the pump in January. And more than half of travellers say that the price of air travel will impact their travel plans in the next six months.
The tracking study’s key findings include:
- About half of American travellers say that their concerns over their personal financial situation will impact their travel decisions in the next six months.
- In fact, those who say it will greatly impact their upcoming travel is now at 30% — up seven points since late August.
- After steady declines in traveller anxiety about gas prices from July through November, they reported a significant increased concern about the price at the pump in January — a seven-point jump in just one month by those saying it will greatly impact their decisions on travel. And more than half of travellers (56%) say that the price of air travel will impact their travel plans in the next six months.
- The good news is that demand still remains at near record levels with 91% still indicating plans to travel in the next six months, but the fiscal concerns will likely soften their spending in key categories and impact the volume of travel if the economic uncertainty is prolonged.
- Looking at customer service, those travellers who reported receiving a lower level of customer service (vs. pre-pandemic) on their most recent trip is now up to 27% — up 5 points since August. Despite this service challenge, customer expectations remain high with 84% expecting the same level of service or higher — up 4% since August. Our workforce issues continue to plague the service industries and will impact traveller choices.