Recent data from digital marketing firm Sojern shows that travel demand for the 2024 holiday season is on the rise, but economic challenges, including inflation, are widening the gap between affluent travelers and those with fewer resources. While travelers remain eager to hit the road or take to the skies, many are opting for road trips over air travel due to increasing airfare costs.
Sojern’s data reveals that upscale and luxury hotel prices have increased by 1.7% and 1.4% respectively, while prices for economy accommodations have remained stable. This trend reflects a growing demand for high-end accommodations as travelers are more inclined to spend on immersive, premium experiences.
“During the pandemic, travelers opted for less crowded destinations, but now they are gravitating toward popular, often pricier, cities,” said Noreen Henry, chief revenue officer at Sojern. “We saw this trend during Taylor Swift’s Eras Tour, with a 65% surge in booking interest in European cities and a 154% increase in hotel rates. This holiday season, travelers are showing a similar preference for immersive experiences, and brands that offer personalized, magical adventures are likely to succeed.”
U.S. Travel Surge Expected Over Thanksgiving, While Christmas Travel Sees Mixed Trends
According to Sojern, 4.7 million people are expected to fly during the Thanksgiving holiday, with domestic flight bookings for 2024 up 4% compared to last year. Orlando has emerged as the top destination for Thanksgiving travelers.
However, Christmas travel paints a more varied picture. While domestic travel is down 15%, international travel to Europe has increased by 2%, and travel to Asia has risen by 9%. Popular international destinations for U.S. travelers include Mexico, the United Kingdom, Canada, and the Dominican Republic.
Europe Remains a Top Draw for International Visitors, While Europeans Look East
Europe’s festive atmosphere, particularly its renowned Christmas markets, continues to attract tourists from around the world. London leads the way as the top European destination, accounting for 79.1% of flight bookings and 89.7% of hotel bookings during the holiday season.
Germany and Austria are also popular, with Germany seeing a 7% rise in international tourists, while Vienna accounts for 80% of holiday flight bookings in Austria. Paris remains a favorite for international visitors, especially with the 2024 Summer Olympics on the horizon, though domestic tourism in France has fallen by 41%.
Interestingly, while European cities draw international tourists, Europeans themselves are opting for long-haul travel, with flight bookings to Asia up 14%, and travel to Latin America and non-conflict Middle Eastern and African countries up 3%.
Middle Eastern Destinations See Increased Interest Ahead of Major Events
In the Middle East, Abu Dhabi and Saudi Arabia are gearing up for major tourism boosts. The Abu Dhabi Grand Prix, set for December 6-8, has spurred a 9% increase in flight bookings in the past month, with regional bookings up 13% and international travel up 4% compared to 2023. Meanwhile, Saudi Arabia is entering its peak tourism season, with international flight bookings up 15% and regional travel rising by 38%.
Japan Emerges as a New Ski Destination as Traditional Resorts Decline
A shift in vacation preferences is evident in the ski tourism sector. Hotel bookings at ski resorts in the U.S. and Canada have dropped by 9% to 18%, while European ski tourism faces similar declines. Japan, however, is seeing a surge in popularity, with hotel bookings up 417% compared to last year, making it a new favorite for ski enthusiasts.
Declining Lunar New Year Travel in 2025
Looking ahead to the 2025 Lunar New Year, which runs from January 28 to February 3, travel to Asia Pacific is expected to increase, but early data shows some downward trends. In Singapore, hotel bookings are down 11.55% compared to the same period in 2024, with domestic bookings declining by 26%. However, Singapore remains the top destination for Chinese New Year travelers, accounting for 14.8% of non-regional travel within Asia Pacific. While some Chinese tourists are expected to travel, air ticket bookings are down by 18.82%. Despite this, hotel bookings are up 10.41% compared to 2023, indicating a preference for domestic travel via train or car.
The Future of Travel: Experience-Focused and Tech-Driven
As travelers increasingly seek experience-driven adventures, the travel industry is adapting to meet these demands. In 2022, Qatar hosted the FIFA World Cup, which led to a 541% surge in global accommodation searches. With Canada, Mexico, and the United States set to host the 2026 FIFA World Cup, similar trends are expected as travelers from around the world plan to attend.
Related topics:
Bronx Culture: A Comprehensive Introduction
