Holiday Plans, Financial Outlooks, and Influences on Destination Choices

As the holiday season approaches, American travel plans are slightly lower than 2023, although the financial sentiment and travel outlook remain steady. In a recent survey, nearly 30% of American travelers reported visiting destinations featured in movies and TV series. However, the influence of marketing platforms like TikTok appears to be more significant for the younger generation.

The survey indicated that about 32.9% of American travelers feel that their financial situation has improved compared to the previous year, marking 13 consecutive months of this sentiment. Despite this, optimism about their financial future has decreased slightly, with 48.1% expecting their household to be better off in the next year, a decline of about 4 points compared to the previous year.

Expectations of an economic recession are at a historic low, with only 34.5% of American travelers anticipating a recession in the next six months. This is an 18-point decrease from the previous year and a 29-point decrease from 2022. The impact of travel costs and gas prices as deterrents to travel are also at two-year lows, at 33.3% and 32.3%, respectively.

American travelers perceive that now is a good time to spend on travel and that travel will be a high budget priority in the near-term are steady at 34.2% and 57.1%. More than three in ten American travelers (31.4%) expect to spend more on travel in the next 12 months, reflecting a strong anticipated travel budget of $5,697 for the next year, a 50.5% increase compared to the previous year.

Overnight leisure travel rates remained flat in the past month, with 49.2% of American travelers reporting one or more overnight trips. Interestingly, overnight travel rates are nearly 10 points higher among Millennials than Boomers. Similarly, 51.2% of American travelers reported taking a leisure day trip last month. Expectations for travel volume to increase next year also remain stable, with 28.8% of American travelers saying they expect to travel more for leisure in the coming 12 months.

Holiday season travel plans are tracking slightly below 2023. Just under a quarter of American travelers (22.8%) have a trip planned for Thanksgiving, led by Gen Z (28.1%) and Millennial (26.1%) travelers. The current share of American travelers with a planned Thanksgiving trip is slightly lower than last year. The percentage of American travelers who have a trip planned for Christmas has remained unchanged compared to last month at 29.0%.

Movies and TV series significantly impact travel decisions, with nearly 30% of American travelers visiting destinations featured on screen. Marketing channels for reaching American travelers vary by generation, with TikTok ranking highly among Millennial and Gen Z travelers but significantly lower among Gen X and Baby Boomer travelers.