Last summer, was wild.
Demand surged due to pent-up “revenge travel” and relaxed restrictions. According to NerdWallet, the Travel Price Index, high fuel prices and limited airline capacity caused travel costs to rise 17%.
What about the summer? What about this summer? Will the weakening of demand result in lower prices and fewer people? According to experts, it doesn’t seem likely.
Hayley Berg, Hopper’s lead economist, says that there is no dip in demand. It seems unbelievable that demand could be sustained, but there is no weakness .”
Americans are still hungry for revenge. This could make for a wild summer.
Although prices for hotels, flights and car rentals may have risen last year, they are still high.
January 2023, January 2020: The overall trip price was 15% higher than January 2020. This is before travel plunged due to the pandemic.
Prices could stay high throughout the summer, but they are unlikely to reach the huge year-over year gains last year.
Jamie Lane, vice-president of research at AirDNA (a data platform for vacation rental data), says that prices are not rising as fast this year. He says that while Vrbo and Airbnb rentals are still in high demand, the increased supply has dampened price growth. “The average daily rate for summer .”
A 4% increase in airfares is not a significant amount considering the recent spikes in travel costs. On the other hand, airfares could see a drop in price this summer, compared to last year.
Berg states that domestic airfare will peak at $350 per year on average. “This is about 10% less than last year, but 10% more than 2019 prices span>
According to the U.S. Bureau of Labor Statistics, car rental prices have fallen from their ridiculous heights, but they are still 43% higher that pre-pandemic levels. Food taken away from home (i.e. restaurant meals) has seen the most steady inflation. It now costs 23% more than it did before the pandemic.
Different booking times
Berg states, “What we have seen repeatedly is that people book a lot more last-minute,” Berg adds. “For domestic airfares, it’s usually three to four weeks ahead, whereas it was closer to six to eight weeks before the pandemic span>
We won’t be able to predict how much summer travel demand will rise until the summer. This could mean that lodging and transportation prices will go up in the weeks leading up to departure. This could be a great way to save money on your travel and lodging costs this year.
Lane claims shoulder season saw more than average demand last year and that the trend is continuing this spring. It would be a sign that pacing is becoming less steady in shoulder seasons like April or May. But we aren’t seeing that .” span.
Asia in the spotlight
It’s not about when, but also where travelers book. This year, international destinations that were closed or restricted in 2022 are experiencing a boom.
According to data from the International Trade Administration (a U.S. government agency), the number of U.S. travelers leaving for international destinations increased 75% by January 2022 compared to January 2022, and 8% by comparison with January 2019. The largest shift has been seen in departures to Asia. They have experienced a remarkable 380% increase in departures between January 2022-2023. Experts predict that this trend will continue into the summer.
Berg states that Asia is the most hot region right now. “The problem is that the supply of direct flights from the U.S. is not back at pre-pandemic levels span>
A long-awaited summer vacation to Japan may sound appealing, but it will likely be expensive.
Big questions remain
Travelers might be concerned about money in the summer, beyond adjusting their budgets to reflect changes in travel prices. It seems that travel will slow down with the possibility of layoffs and record-setting credit card debt and government data showing that pandemic savings are decreasing, as well as potential layoffs.
Travelers will likely cut back on their spending in spring, leading to fewer people and lower prices for summer. Or will they continue to pursue revenge travel at any cost, leading to another summer with wild travel pricing
You can avoid last-minute bookings for popular summer destinations, regardless of what happens. Skipping Asia could save them from paying high airfares, especially if there are not many flights available.
Remember to bring snacks, as restaurant food can be expensive.
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