US Travel Intentions on June 2021 - BVA BDRC

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US Travel Intentions
       June 2021
US Travel Intentions on June 2021 - BVA BDRC
ClearSight® on Recovery – Introduction

The speed and disruption caused by the COVID-19 pandemic is
hard to overstate, whether from the direct impact (or timing) of
government intervention, the science of a mutating virus and the race
against time to vaccinate entire populations, changes to the industry
supply-side and distribution channels or shifts in the priorities and
preferences of citizens and consumers. Through ClearSight®, our goal
is to help organisations make sense of this rapidly changing world and
join the dots between how their target audiences live, work, spend
and play.
In this latest edition of ClearSight® on Recovery, we examine the US
summer travel market to assess the prospects of the hotel and travel
industry as Americans head into a key travel period.

This is the first of a series of reports that will quantify the state of
the US travel sector.

If you’ve not already signed up to get the latest insights, you can do so
here: https://hcontent.bva-bdrc.com/clearsight-usa

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Executive summary
Signs of a strong summer travel season                                          Trip planning and summer vacation

Like many endeavors in the United States in mid 2021, intent to engage in       For the majority of consumers, trip planning will include using an Online Travel
travel and destination-based leisure activities increased dramatically.         Agent (OTA), especially for hotels. Gen Z and Millennials are most likely to
Good news is especially favorable for domestic travel, visitor attractions      want to use OTAs for hotels and flights, while Boomers are least likely to use
and cultural destinations. Nearly half of Americans plan to take a              OTAs for any travel planning or research. Nearly half of Americans intend to
summer vacation and/or stay in paid for accommodation and one third             travel at least once during the summer of 2021. Among these summer
plan to travel by plane. Millennials and the emerging Gen Z age cohort          travelers two-thirds plan to travel by car and about half by plane. Summer
are most keen on engaging in travel related activities, but Boomers are         2021 travelers are more affluent and younger than non-summer travelers. As
more cautions. Millennials represent more than half of all US                   a result, this summer season has the potential to be a profitable one with
international leisure travelers.                                                more than a third of travelers with household incomes of over $100,000.

Hotel guest expectations                                                        Paid accommodations: Hotels have the edge

Guest expectations of cleanliness for their next hotel stay are high with       Despite the buzz about alternative hotel accommodations (e.g. Airbnb), hotels
nearly half saying they expect enhanced cleaning regimes and a hotel            still dominate share of trip nights with more than half of all summer trip stays
brand’s ‘cleanliness guarantee’. Cleanliness expectations are highest           and nearly three quarters of all paid stays. The average length of stay in hotel
among Boomers and lowest among Millennials. About half of American              accommodations was about four nights compared to three nights for hotel
consumers have flexible expectations about the availability of hotel            alternatives. Across all paid accommodations, the highest number of stay
amenities for their next stay. For example, only half of future hotel           nights was among Boomers, especially among non-hotel accommodations. A
guests expect that self coffee-serving areas, restaurant dining and free        majority of 2021 summer travelers are loyal to their preferred hotel brand
breakfast will be fully available for their next stay. Further, at least one-   with nearly two thirds saying they try to stay at their preferred hotel brands
fifth of consumers expect a pool or gym not to be available in time for         whenever possible. This strong relationship holds across age cohorts, which
their next hotel stay.                                                          bodes well for the branded hotel industry.

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Like many endeavors in        YOY change in intent to engage activities in the next 3 months
the United States in mid                                                                                                          May-20        May-21
2021, intent to engage in      60%
                                                  58%                                                                             N=1000        N=1931

travel and destination-                                              88%
                                                                                       67%

based leisure activities       50%               52%                                                      81%
                                                                                                                             119%
increased dramatically.        40%
                                                                    47%
                                                                                       45%
Good news is especially                                                                                   38%
                                                                                                                                                109%
                                                                                                                             35%
favorable for domestic         30%        33%

travel, visitor attractions    20%                           25%
                                                                                27%
                                                                                                                                                23%
and cultural destinations.                                                                         21%
                                                                                                                      16%
                               10%
                                                                                                                                         11%
                                                                                                                                                             Includes any
                                0%                                                                                                                       destination outside
                                       Go on a day out   Go on a US     Stay in paid-for            Visit a         Travel by plane      Go on an         the United States.
                                         to a visitor  vacation/leisure accommodation             museum/art                           international
                                         attraction          trip         (e.g. a hotel,            gallery                           vacation/leisure
                                                                         Airbnb/VRBO,                                                       trip
                                                                           B&B, etc.)

                                     YOY percent increase in intent to engage in the next 3 months

                              Q2. Now, for each of the activities below, please indicate when you next intend to engage in each. Total population.

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Millennials and the           Plan to engage in leisure activity in the next three months
emerging Gen Z age
cohorts are most keen on                                                                   Ranked by high to
                                                                                           low by Millennials
engaging in leisure
activities, especially a US
based vacation/leisure
trip. Boomers are more
cautious about summer
travel with only about a
third planning to venture
out on a leisure trip.

                              Q2. Now, for each of the activities below, please indicate   Significantly higher/lower in comparison to other
                                                                                           segments at a minimum confidence level of 90%.
                              when you next intend to engage in each.
                              Among total population

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Millennials drive the         Share of summer travel by ag cohort
largest share of summer                                                                           Gen Z (18 to 24)                 Millennial (25 to 40)     2021 summer
travelers across key travel                                                                       Gen X (41 to 56)                 Boomers (57+)            travel incidence

categories and represent
more than half of all US                     Go on a US vacation/leisure trip
                                                                                            12%            36%                   23%            28%              47%
international leisure
travelers.
                                     Stay in paid-for accommodation (e.g. a                 12%         37%                     24%            26%               45%
                                              hotel, Airbnb/VRBO, B&B, etc.)

                                                                                          13%          42%              21%           24%                        35%
                                                                 Travel by plane

                                                                                          19%        54%          20%      7%                                    23%
                               Go on an international vacation/leisure trip

                                                                                       0%            10%           20%             30%         40%         50%

                              Q2. Now, for each of the activities below, please indicate when you next intend to engage in each.
                              Among total population

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Guest expectations of                                                      Enhanced cleaning regimes                                                        45%
cleanliness for their next                                        Hotel brand "cleanliness guarantee"                                                       45%
hotel stay are high with
nearly half saying they                            Sanitizing hand gel or wipes throughout the hotel                                                    42%

expect enhanced cleaning                                                       Staff to wear face masks                                               40%

regimes and a hotel                                                         Guests to wear face masks                                           36%

brand’s ‘cleanliness                                    The ability to cancel my hotel for any reason                                          35%
guarantee’. Further, one-
                                                                             Enforced social distancing                                  29%
third of consumers
expect the ability to            Measures in place to prompt social distancing (e.g. signage, staff)                                     29%

cancel their hotel for any                                                Reduced maximum capacity                                     26%

reason.                                                 Controlled numbers in each area of the hotel                               25%

                                 Using your own device as a room key (e.g. keyless entry at hotels)                              23%

                                                                                  I won't stay in a hotel          3%

                             Q2.7. In general, for your next hotel stay, which of the following do you expect from your hotel?
                             Base: Total sample n=1426

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Cleanliness expectations                                                                                                                        Ranked by high to
are highest among                                                                                                                               low by Boomers

Boomers and lowest
among Millennials, and                                                                                                                                              Older consumers
                                                                                                                                                                     by far are most
so too is the ability to                                                                                                                                            concerned about
                                                                                                                                                                    hotel cleanliness
cancel their hotel for any
reason. Using a mobile
device for keyless entry
appealed most to
Millennials and least to
Boomers.

                                                        N=153                       N=465                 N=275                            N=533

                             Q2.7. In general, for your next hotel stay, which of the       Significantly higher/lower in comparison to other
                             following do you expect from your hotel?                       segments at a minimum confidence level of 90%.
                             Base: Total sample n=1426

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About half of American                                                                       Fully available            Partially available           Not at all available

consumers have flexible
expectations about the                        Self coffee-serving areas/stations                            51%                                     33%                  15%

availability of hotel
amenities for their next                                        Restaurant dining                           50%                                      38%                     11%

stay. For example, only
                                                            Free buffet breakfast                           50%                                  33%                    17%
half of future hotel
guests expect that self
                               Grab & go food service (e.g. pre-package food)                               50%                                     36%                  15%
coffee- serving areas,
restaurant dining and                 Contactless (i.e. mobile device) check-in                            46%                                  38%                      15%
free breakfast will be
fully available for their                                                      Pool                      44%                                  36%                      20%
next stay. Further, at least
one-fifth of consumers                                                         Gym                   36%                              37%                          28%
expect a pool or gym not
to be available in time for
their next hotel stay.
                               Q2.8. For each of the following hotel amenities, please rate the level of availability        Note: some differences in amenity availability
                               or degree that you expect them to be provided for your next hotel stay.                       between age cohorts were different, however
                               Base: Total sample                                                                            none had a meaningful impact.

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For the majority of          Total sample                                                   OTA usage by age cohort
consumers, trip planning
will involve using an
Online Travel Agent
(OTA), especially for
hotels. Gen Z and
Millennials are most
likely to want to use OTAs
for hotels and flights,
while Boomers are least
likely to use OTAs for any
travel planning or
research.
                                                             N=1426                         N=153                   N=465         N=275                      N=533

                             Q3. At any point in your trip planning or research are you likely to use an Online Travel Agent        Significantly higher/lower in comparison to other
                             (e.g. Expedia, booking.com, etc. ) for one or more of the following? Please select all that apply.     segments at a minimum confidence level of 90%.

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Nearly half of Americans    Time horizon for next US vacation                                                      2021 Summer travelers
intend to travel at least
once during the summer                                                                                                          Car                                   65%
of 2021. Among these            Do not intend to
                                engage in this activity
                                                              11%

summer travelers two-           More than a year              13%                                                   Flight/airplane                           49%
thirds plan to travel by        from now

car and about half by           6 to 12 months
                                                              13%

plane.                                                        16%
                                                                                                                              Train          12%
                                4 to 6 months                                                                                                          Note: The relatively
                                                                                                                                                       high proportion of
                                                              12%                                                               Bus                    expected/planned
                                                                                                                                            9%
                                3 months                                                                                                               plane travel is likely
                                                                                                                                                      the result of pent-up
                                                                              2021 summer                                                            demand and as a result
                                                              16%                                47%
                                2 months                                                                                                              be an overestimate of
                                                                                travelers
                                                                                                                         Ship/boat        5%            actual consumer
                                                                                                                                                            behavior.
                                Within the next               18%
                                month                                                                                                  N=907       *Among those who intend
                                                                                                                                                   to travel in next 3 months
                                                            N=1931                                                                                 (i.e. summer travelers)

                            Q2. Now, for each of the activities below, please indicate when you next intend to engage in each. /Q4. What mode of
                            transportation will you be using for this next trip? Please select all that apply.

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Summer 2021 travelers        Household income                                                          Age cohort
are more affluent and
younger than non-
summer travelers. As a           39% ↑
                                                              26% ↓
                                                                                    100K or More
                                                                                                          28% ↓
                                                                                                                           42% ↑      Boomers (57+)
result, this summer
season has the potential                                       32%                  50K to LT 100K         23%
                                                                                                                                      Gen X (41 to 56)
to be a profitable one
                                                                                                                            24%
with more than a third of         34%
                                                                                    25K to LT 50K                                     Millennial (25 to 40)
travelers with household                                      24% ↑                                       36% ↑

incomes of over $100,000         18% ↓
                                                                                    Less than 25K
                                                                                                                           25% ↓
                                                                                                                                      Gen Z (18 to 24)
and likely more                  10% ↓
                                                              18% ↑
                                                                                                          12% ↑             8% ↓
disposable income.          Within the next 3 More the 3 months                                      Within the next 3   More the 3
                                months                                                                   months           months

                                                                                                          44.6              50.3      Average age
                                 Summer 2021 travelers

                                Significantly higher/lower in comparison to other
                                segments at a minimum confidence level of 90%.

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2021 summer trips will       Traveling party size                                                 Traveling with children under 18
have a party size of 2.5
travelers and a third will
include children under
18. Despite the buzz
                                                                      2.6
about alternative hotel
accommodations (e.g.                                                  2.8
Airbnb), hotels still                                                             2.5                              No            Yes
                                                                                 Total
                                                                                                                  68%            32%
dominate share of trip                                                2.6
nights with more than
half of all stays and                                                 2.1
nearly three quarters of
all paid stays.

                             *Among Americans planning to travel in summer 2021. Sample size N=907.

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2021 summer trips will       Share of paid and non-paid accommodation                                 Number of nights away from home
have a party size of 2.5
travelers and a third will                                                Share of paid stays   70%
include children under                                   Hotel                     All stays    59%
18. Despite the buzz                                                                                                                          5.3
about alternative hotel       Hotel alternative - Airbnb, VRBO           10%
                                                                                                                                        4.5
accommodations (e.g.
Airbnb), hotels still                      B&B or guesthouse        4%                                                                        5.2

dominate share of trip                                  Hostel      2%
                                                                                                                                                    6.7

nights with more than
                                          Camper/Recreation                                                                 5.5
half of all stays and                    vehicle/Camping tent
                                                                    4%
                                                                                                                           Total
nearly three quarters of
                               Other paid-for accommodation          6%
all paid stays.
                                   Non-paid accommodations
                                                                          16%
                                        (friends/family)

                             *Among Americans planning to travel in summer 2021. Sample size N=907.

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The average length of       2021 Summer travelers                                               Average number of stay nights among users of each
stay in hotel                                                                                   accommodation type
accommodations was
about four nights
compared to three nights
for hotel alternatives.
Across all paid
accommodations, the
highest number of stay
nights was among
Boomers, especially
among non-hotel
accommodations.

                            Among summer travelers N=907                                        Note: Sample sizes among some accommodation platforms and
                                                                                                age cohorts are small

                           Q10. Of these nights away how many nights will you be staying in the following types of accommodation?

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A majority of 2021           Hotel brand loyalty                                             Hotel brand loyalty by age cohort
summer travelers are
loyal to their preferred
hotel brand with nearly        I am loyal to a
                               hotel brand or
two thirds saying they try     brands and try to
to stay at their preferred     stay at these
                               properties
                                                                4%

hotel brands whenever          whenever possible

possible. This strong          I do not have a
                               hotel brand
                                                        36%                    60%

relationship holds across      preference and
                               stay at properties
age cohorts, which bodes       that meet my
                               needs
well for the branded           Don't know/not
hotel industry.                sure

                              Among summer travelers N=907

                             Q11. For your nights in a hotel on this next trip, which of the following best describes your view about your hotel selection

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Methodology
Consumer survey

 Nationally representative online survey. Data collected
 over a 7 day period. Details of survey waves:

 • May 2020 (n= 1,000)
 • May 2021 (n= 1,931)

 The data in this report is weighted to be
 representative of United States. US Census population
 benchmarks were used in the weighting of the data.

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Contacts at BVA BDRC Americas

           Matthew Petrie
           President
           matthew.petrie@bva-bdrc.com
           +1 202 841 5855

           Liz Healy
           Director

           liz.healy@bva-bdrc.com
           +1 202 550 0051

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