The news is bleeding with travel gloom and discouraging numbers for the hospitality market. Headlines tout softening and consumer spending coming to a halt while exploiting the idea that luxury travel is both thriving and diving. Bloomberg reported that even with deep-pocketed travelers, the word right now is “value.”
Reality: Travel is slowing, but this has been happening, and the news cycle is catching up to reports and trends of 2024. Consumers have been living high in travel mode—living for the experience and not afraid to put the fun on credit for some time.
Spending has caught up with many, and thus, household budgets are tightening. While travelers are still in for the “experience,” they stick a little closer to home. Forbes recently reported on the “staycation” and why it is alive and well. Summing it up, it’s the bang for the buck and the ability to enjoy an experience.
While staycation searches are at their highest level since 2020, these are the top three reasons why the “drive-to” vacation will dominate the next six months.
- Uncertainty
- Cash on Hand
- Hassle of Cancellations
Uncertainty is in the air
The swing month of August begins back-to-school season. The stock market typically has a summer tantrum after the excessive dripping heat. Travel is known to slow every year at the end of summer, but why does this year feel different? A U.S. Presidential election always provides uncertainty, but this year hits differently with waves of breaking news. At home, costs are rising. While the ultra-luxury sector does not necessarily stop spending, caution is setting in. The budget to moderate travelers is 50/50- going all in on getting out there for the adventure but more likely staying home or nearby.
Let’s not forget one very important factor in uncertainty—the Media we consume. Everything is doom and gloom. Facebook feeds are looming with comments about War and Politics. The power struggles in Europe and the Middle East are weighing heavy on the world. Opinions are a dime a dozen, and headlines are downright scary.
So, as we walk the line of the what-ifs, wallets, fears, and travel can terrorize our brains. As hospitality owners, we need to remember that consistency is key. Don’t stop working or give up. An industry icon and colleague, Bashar Wali, had this to say on Hospitality Daily: “Let’s focus on what we can control: Teaching our teams, empowering our people, and delighting our guests,” Bashar Wali.
You can’t spend what you don’t have.
Consumer debt is at its highest level ever, and interest on credit cards is racking up in homes across the country.
The market is doing its best rickety old roller coaster ride of summer. When we were young, we could not wait to get thrown around, embracing the thrills of the downhill slide and anticipating the climb. But it hits differently when it’s dollar bills riding in the fast lane of up-and-down thrills.
The pandemic brought the “experience” of travel to the top of must-do lists. Live for the moment. Self-care. You deserve it. These words enlivened travel. And we all said yes. We drove to wherever we could. We hopped on planes and explored our country. And when the world opened up, we were here for it, ready to take our first or tenth global adventure to embrace what we said we were missing.
Travelers took the leap. Then inflation came. We all kept spending, living, and doing what made us feel good. And now, it’s catching up.
Hotels have been feeling this all of 2024. Airbnb has not been getting the same amount of bookings—taking a nose dive this year in the U.S. This has caused short-term rental owners to force their hand and lower prices in many markets. Consumers who are traveling during this uncertainty want amenities, service, and hospitality. Travelers are getting choosier and choosing to return to hotels and inns where it feels like coming home without the chores involved.
Travelers are taking a breath. Yoga instructors and business coaches instruct people to pause, take deep breaths, and not make an impulsive move but an intentional one. And that is what hotels need to do in the conversation of uncertainty and less consumer spending – be intentional.
The drive-through, drive-to consumers, and hotel guests are there, but give them what they want and keep building your future—because when you stop, you are dead.
Cancelled flights
Hurricanes, CloudStrike, and the damn heat are throwing a wrench in air travel. As an avid cloud surfer (one of the airline’s top travelers), I know the cancellations and delays are hitting home this summer. It’s not an airline issue- I’m still loyal to mine, but they are under fire. No one can control the weather – the uncertainty of it is also not conducive to airline travel. And travelers are over it. Trying to pull magic tricks to get to where they need to go. How many rabbits can you pull out of a hat?
The uncomfortable and unpredictable airline travel is why travelers will choose to drive. So staycations turn into drive destinations that are up to three to four hours from where they live- providing the adventure and experience they crave, but close enough to home if something goes wrong. But don’t forget, the staycation is still about the experience- so off-the-beaten-path, Instagrammable, and within the budget is still a thing.
Hot “Drive-To” destinations
Find Your Beach on the Connecticut Shoreline
Bostonians and New Yorkers (Hamptons year-round residents, too!) are looking for a quieter place to escape. The stretch of Connecticut shoreline from Mystic to Madison offers abundant sea-faring and beach fun. In the middle of it all lies Westbrook, CT, a location that conveniently allows travelers to explore all the shoreline offers. Charming Westbrook Inn provides access to kayaking on the Patchogue River from the property and beach cruisers and carts for beach access that are less than a mile from the property. This hidden gem is easily accessed by many in the Northeast.
The Quiet Side of the Appalachian Mountains- Virginia
Escaping the crowds of other mountain towns such as Asheville, travelers discover and seek quiet, quaint, and refreshing, and why VA is it. Pinterest has dubbed it the “Quiet Life” trend of 2024. As short-term rental growth is expected in north Georgia and the North Carolina mountains due to “zero to no restrictions,” travelers are begging for something quiet and pristine. Enter Pearisburg, Virginia, where U offers one of the best sunrise views in all of Appalachia.
Tell You Why Colorado
Head out from Denver or up from New Mexico and take a drive to Telluride. Escape the Aspen crowds for year-round activities. Boutique Hotel Columbia sits adjacent to the free gondola that transports guests along a soaring 13-minute ride to the base of Mountain Village (and has a ski locker room and fabulous apres ski bites and sips.) Explore the West’s best art galleries and history, along with the shops, eateries, and outdoor concerts. Traveling from Durango, enjoy the scenic drive along the Million Dollar Highway, which passes through historic mining towns.
Y’all Come For Texas Hill Country
Get away from it all and embrace the countryside in the charming towns of Hill Country—best known as the alluring miles between Austin and San Antonio. While Fredericksburg has been on the hot list, up-and-coming Wimberley is peeking at popularity as people discover the local vibe in shopping, restaurants, wineries, breweries, outdoor activities, and the best sunset found at the Inn at Sunset Mill Ranch.
The Hamptons of Iowa
Many Nashvillians have always enjoyed escapes to the Great Smoky Mountains, but the newcomer on the rise is the lakes area of Okoboji, Iowa. With a hot country music scene and down-to-earth vibe, you never know who you’ll discover on stage. The beautiful landscape and vibrant culinary scene, including the undiscovered breakfast for guests of The Oakwood Inn, are worth a good ol’ American country drive- and there is an EV charger, too!
Southwest Shores of Lake Michigan
Drawing visitors from Chicago, Indianapolis, and Detroit, the stretch of Lake Michigan’s coastline from Union Pier to Saugatuck is filled with unique experiences the world is ready for. Visit Saugatuck for a charming coastal town vibe (stay at Hotel Saugatuck), stop for a night in South Haven and experience a vineyard stay complete with a sommelier and chef at The Vintage Inn at Veritas Estate, or complete your road trip in Union Pier. This Hallmark town is home to 600 residents- beaches, a lush landscape, and America’s #1 Brewery – Seedz. Stay at Goldberry Woods, which offers modern farm experiences, including a year-round pool, and is within walking distance of the brewery.
