Travel Agent Appreciation

Travel Demand Remains Strong Despite High Gas Prices

In its latest tracking study of American travellers, Longwoods International reports that even though they’re keeping an eye on the price of gas at the pump, over 90% of those travellers have trips planned in the next six months.

It found that although only 20% of travellers said that the coronavirus would greatly impact their decision to travel in the next six months, the lowest percentage since the pandemic began two years ago, 38% reported that rising gas prices will greatly impact their travel decisions in the next six months.

Amir Eylon, president and CEO of Longwoods International, commented that: “With concerns about COVID-19 more and more in the rear-view mirror, we are seeing a faceoff between the pent-up demand to hit the road and fuel costs.”

Eylon continued: “Summer travellers may be more cost-conscious given both the fact of higher gas prices and the extensive news coverage gas price increases generate.”

Reducing both the number of trips and choosing destinations closer to home are the top two coping mechanisms for consumers worried about gas prices, but they also are reducing spending on everything from retail and entertainment and recreation to food and beverage. Only 18% reported that rising gas prices will have no impact on their travel plans.

Survey highlights include:

  • 65% of American travellers now say rising gas prices will either impact or greatly impact their decision to travel in the next six months (up 6 points in the past month).
  • 38% of American travellers still say rising gas prices will greatly impact their decision to travel in the next six months (unchanged from two weeks ago).
  • Of the ways travellers are adjusting their travels due to rising gas prices, we saw more travellers indicating plans to reduce spending in the areas of retail (30% – up three points in two weeks), and food and beverage (23% – up four points). The biggest areas of change: reducing the number of trips planned (35%) and choosing destinations closer to home (33%) remain basically unchanged from two weeks ago.
  • Silver Lining: Despite all of this, only 6% indicate that they are cancelling trips and 6% indicate they are choosing not to travel at all, and almost one in five (18%) still indicate that rising gas prices are not impacting their travel plans.
  • 26% of American travelers indicate their concerns about their own personal financial situation will greatly impact their decision to travel in the next six months.

On the pandemic side of things, Longwoods International reported that:

  • Travel demand remains at pandemic high levels with 91% of American travellers still indicating plans to travel in the next six months.
  • A nice tail end of the Spring travel season looms ahead as 25% indicate travel before June 1.
  • A pandemic-low 20% indicate that COVID-19 will greatly impact their decision to travel at this point with another pandemic low of only 41% indicating that the pandemic is causing them to change their upcoming travel plans.
  • Longwoods International also noted that it continues to see the shift in traveller mindset from pandemic travel to that of endemic travel as a record 40% of American travellers now say that COVID-19 no longer has any influence whatsoever on their travel plans — up six points in just one month.
  • A pandemic high of 74% of American travellers now feel safe travelling outside their community.

Go to https://longwoods-intl.com/covid-19 for more.

 

Posted in COVID-19, News, Trends & Research

 

 

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