Travel Trends and Insights

With COVID-19 still hanging in the air and over our heads, a majority of Americans say they’re not going home to see family -- and a third say they’re not planning to celebrate the holidays at all.

But they’re not staying home, either. A just-released Travelocity 2020 Holiday Outlook survey found that a quarter of consumers are opting for a personal vacation before the end of the year instead. For travelers with children under 18, that number shoots up to 45 percent, 

"It's going to be a nontraditional holiday season this year, so families are gearing up to make the most of it by planning a holiday away from home and using their vacation days to travel," says Katie Junod, General Manager at Travelocity. 

"Our survey found that 80 percent of travelers who have taken a trip since the start of COVID-19 rated their experience as excellent or good, and that's given them the confidence to plan that next vacation at a time when they need a break from at-home school and work."

The forecast

Survey respondents who will travel during the holidays are trying to plan ahead because of the uncertainty related to the pandemic. Nearly 66 percent of holiday-goers say they've already booked lodging and transportation for Thanksgiving or the December holidays. Another 20 percent plan to book their holiday travel before October ends.

Based on survey results and demand data, Travelocity is predicting the following holiday travel trends:

• Holiday hoteling: More travelers say they plan to stay at a hotel or a vacation rental over the holidays, with hotels being a slight favorite.

• Road ready: Nearly 80 percent of Americans plan to jump in the car and drive wherever they’re going versus 20 percent who plan on flying.

• The long weekend option: One in four holiday travelers say they'll stay through the long weekends of Thanksgiving and Christmas (on Friday this year) rather than planning shorter day trips. 

• Celebrate close to home: Two-thirds of holiday-makers plan to travel 250 miles or less to mix and mingle.

Doing holiday away from home the right way

In all likelihood, Santa is not bringing anyone a coronavirus-free Christmas, but Travelocity says there are some sensible tips travelers can use to venture out with confidence.

• Keep travel plans flexible: Because COVID-19 hot spots change like the wind, Travelocity says travelers should make sure that they look for flights and rooms that come with a free cancellation policy. 

• Look for hotels that do enhanced cleaning: One-third of travelers say that safe accommodations play a big part in whether or not they will travel this holiday season. Some travel search engines have a search filter that allows consumers to look for hotels that have proactive sanitization plans. Airbnb also mandates that its properties adhere to certain cleaning procedures.

• Search for flights with safety in mind: Fifty-three percent of travelers who have already booked flights this holiday season admit they are worried about flying right now. Some travel search engines have a filter that tells consumers what airlines expect from them in the way of mask requirements and temperature checks. However, travelers should also look into at-airport tests, on-board sanitizing procedures, and other health and safety measures to make sure they’re comfortable with everything the airlines are doing or not doing.

Even though Travelocity's survey found that this holiday season will be different than in years past, Junod says travelers’ holiday spirits are still high. 

"Two-thirds of respondents said they've been able to travel to see friends and family since COVID-19 started, and almost half say they're feeling happy and calm about the upcoming holiday season," she said.

Despite some businesses reopening offices for employees and a steady rise in gasoline demand, rush hour traffic still isn’t what it used to be. A new survey by ValuePenguin found around 30 percent of consumers with a car aren’t using it to commute to work.

But as of August, 26 percent of employed Americans are back to their daily commute, including essential workers and those whose employers reopened their offices. That said, some are using their cars more than others.

People with children are more likely to be on the road at least once a day. And oddly, people who live in New England are driving more daily than people in other regions of the country.

The older you are, the less driving you’re likely to do. Only 22 percent of baby boomers and nearly the same percentage of the silent generation said they were using their cars daily in August.

The decrease in traffic that began in late March has affected consumer behavior and had an impact -- mostly favorable -- on consumers’ pocketbooks. Twenty-six percent of drivers said they no longer fill up with gas on a weekly basis, compared to before the pandemic.

Buying less gasoline

In January and February, 43 percent of drivers said they filled up at least once a week, but just 32 percent said they did in August. At the same time, the number of drivers who gas up less often than once per month doubled from 4 percent to 8 percent.

That probably means very stable gasoline prices heading into 2021. The Wall Street Journal reports that after rising in the early summer, gasoline demand has begun to drift lower again.

Because people were expected to drive less during the economic shutdown, just about every car insurance company temporarily cut insurance rates for drivers, expecting to pay fewer claims because of fewer accidents.

Those discounts are beginning to expire, but the survey found that many consumers have taken the opportunity to shop around for even less expensive insurance coverage. More than a quarter of drivers made changes to their auto insurance during the pandemic to save money. 

Changes to insurance policies

Of those, about half switched to another provider to get a better rate. The other half reduced the amount of coverage since they are driving less.

"Some savvy consumers are using their decreased driving to their advantage and are paying less for gas and auto insurance," said Matt Timmons, a research analyst at ValuePenguin.com. "While they may need to roll back those changes as driving returns to normal, most consumers don't expect normalcy to return anytime soon -- meaning it may be worth drivers' while to assess their auto insurance and other car use related expenses and consider making changes."

The pandemic has also reduced the use of ridesharing services like Uber and Lyft. About one in six consumers who had been using ridesharing before said they’ve stopped completely because of the pandemic. Another 13 percent said they’re still using those services but a lot less frequently.

Ever been hurt while you’re on vacation? Most people have, but it’s usually no more than a twisted ankle or a trip to an immediate care center to fix you up after you impaled your hand while you were loading marshmallows on a stick.

But there’s some folks -- we’ll call them “adventure seekers” -- who tend to take things further than a casual walk in the woods. A new survey finds that nearly half of those adventure seekers have been injured while on a trip (or know someone who has.) Another 20 percent of them have felt like they were actually going to die at one point during one of their adventure-prone getaways.

Going somewhere over the holidays?

If you’re someone headed for the slopes of Colorado or the hills of Costa Rica over the holidays, it might be smart to check out some new findings gathered by The Guardian Life Insurance Company of America® (Guardian Life). The survey results could save you from paying some unexpected expenses.

The findings show that 60 percent of American travelers qualify themselves as adventure seekers. Unfortunately, that title could come with some consequences. Seventy-five percent of the injuries that happened while respondents were on vacation required medical attention; however, only 20 percent of participants felt they were financially ready to cover any out-of-pocket expenses related to those injuries -- whether it was a trip to the emergency room or an immediate care center.

"As more Americans pursue adventure travel, accidents are likely to happen, so they should be prepared for unplanned expenses from injuries requiring medical attention," said Marc Costantini, Executive Vice President, Commercial and Government Markets, Guardian Life.

"The high cost of medical care, particularly for those with high deductible health plans, can be offset with accident insurance and help people reduce financial stress."

Forewarned is forearmed

You might be thinking, “Oh, nothing like that would ever happen to me,” but if those findings raised an eyebrow, it would be smart to take some time to ask yourself these expense-related questions before you take your next vacation:

• Do you have an accident policy that would cover -- at least partially -- extra, out-of-pocket expenses if you get injured while on vacation?

• If you do have an accident policy, are you aware of everything that the policy covers? This could include unexpected injuries, deductibles, rental or personal vehicle problems, accidental death, emergency evacuation, or pre-existing conditions. It’s also important to know if your policy covers only you or everyone in your family. 

One of the more important “what if’s” concerns driving. With some 22 percent of all Americans’ vacations being road trips, and taking into account the sheer volume of traffic on U.S. highways, there’s a heightened possibility that something might go wrong while on the open road.

With holiday travel season quickly approaching, ConsumerAffairs recently researched which states are the best and worst to drive through (sorry, South Carolina).

While it’s not necessarily cause for alarm, it would be smart to double-check your insurance policy to see if the things that make a road “bad” -- debris, potholes, illegible street signs, etc. -- are actually covered if one of those winds up as the cause of an accident.

August is only just coming to a close, but already consumers have their sights set on the impending holiday season.

A survey conducted by Princeton Survey Research Associates International (PRSAI) shows that 8 million U.S. adults have already made hotel reservations for the holidays, while another 6 million have purchased airline tickets for the same period, according to Bankrate.com.

Still, findings show that millions more will need to make plans soon if they want to ensure their accommodations. The researchers say that 35 million consumers anticipate that they’ll be staying in a hotel over the holidays and 31 million are planning to fly.

How to save

In the past, experts have hammered home that booking your flights early will save you money, but airfare tracker Hopper says that isn’t necessarily true. It says that the best time to buy plane tickets for Christmas is in October, while the best Thanksgiving prices will last until around Halloween.

For consumers looking to save even more, Bankrate.com suggests using a credit card that rewards holders with points/miles. Experts point out that many consumers who travel infrequently might not realize how many points/miles they have accrued just by using their credit card to pay for everyday expenses. Consumers can often redeem these rewards for hotel and airline accommodations, or for cash back, so don’t forget about them.

And, if those savings aren’t enough for you, Bankrate.com analyst Robin Saks Frankel says that consumers can also take advantage of lucrative credit card sign-up bonuses.

“This is basically free money,” the analyst says. “The best current offers are worth up to $1,000 in free travel – just for signing up for the card. You can also get other perks like free checked bags, airport lounge access, Global Entry and TSA pre-check.”

Consumers can browse some of 2017’s best credit card options by visiting Bankrate.com’s site here.

This summer, consumers are more likely to take a long weekend trip, perhaps a sign of growing consumer confidence and an improving economy.

A survey by travel publisher Travelzoo shows nearly three quarters of consumers are planning an extended getaway -- longer than a two-day weekend but shorter than a vacation. Many of those said plans are likely to be made, and a destination chosen, at the last minute.

About half the consumers in the survey said they were likely to make more long weekend "mini vacations" than they did last year.

And while a trip to the beach is one of the most popular long weekend destinations there's increased interest in a long weekend to Europe. Only 9% are planning a vacation to Europe this summer but half the consumers in the survey said they are considering taking advantage of low air fares for a long weekend getaway to someplace like Paris.

Getting the price under $500

The threshold appears to be around $500. Consumers say if they get get round trip airfare under that amount, their bags would be packed. WOW Air and Norwegian Air have low cost flights well within that ball park. As we reported back in February, Norwegian Air plans to start service this summer between the East Coast and Ireland and Scotland for $65 one-way.

"Long weekend trips are in, and the good news is that there are more options now with lower fares to Europe and the increasing availability of last-minute deals," said Mike Stitt, Travelzoo's president of North America. "Even with the ongoing headlines about safety and security, Americans are still eager to get out of town this summer."

The beach is still a favorite

But not everyone is headed for Europe, or someplace exotic. The Travelzoo survey find more than half of consumers surveyed expressed a preference for the beach, preferably one not too far away. Still, a majority said they would be willing to drive three hours.

Why more long weekends instead of vacations? The research doesn't answer that question. However, if could be that consumers don't feel they can take the time away from jobs and other responsibilities.

Stitt says other research shows Americans increasingly don't use all their vacation time. Research by Alamo Rental Car shows 59% of Millennials felt "shamed" for taking extended vacations from their jobs.