2024 Travel Trend: Consumers Plan To Spend More On Travel—Despite Rising Costs

26.10.2023 - 16:23 / forbes.com / Kevin Jacobs

As the cost of living continues to put pressure on U.S. households, many are feeling the crunch. However, a new study published this month by Hilton suggests that consumers plan to spend more on travel in 2024. How? By reducing other areas of their personal spending to make leisure travel a priority.

Even as inflation has begun to ease, it is impossible to ignore the impact it is continuing to have on American consumers. As Mark Zandi, chief economist at Moody's Analytics, wrote in a post on X, the platform formerly known as Twitter, "the typical household spent $202 more in July than they did a year ago to buy the same goods and services. And they spent $709 more than they did two years ago".

Despite this, a recent global survey conducted by Hilton and Ipsos shows that travelers intend to reduce their personal spending in order to prioritize travel in 2024.

While 64% of global travelers aim to cut other areas of their personal spending to prioritize leisure travel, Gen Z and Millennials are taking it a step further, confirming that they also plan to spend more on travel in 2024.

"Even with ongoing macroeconomic uncertainty, travel demand has remained strong as consumers continue to prioritize the value of experiences and connections over things," commented Kevin Jacobs, Chief Financial Officer & President, Global Development, Hilton.

So, what kinds of experiences are people looking for when traveling?

Hilton’s study found that personal wellness matters to travelers, with an increased focus on savoring a good night’s sleep while away from home. This has come into focus more than ever after the challenges of the last few years heightened travelers’ desire for rest and relaxation.

In the tech-forward world of 2024, travelers of all ages will be looking for innovative and seamless digital solutions to simplify their travel experience and personalize their stays, from booking to on-property experiences. Eighty percent of the global travelers surveyed by Hilton said it is important to be able to book their trip entirely online, while 80% want to be able to use personal devices seamlessly with on-property technology, from Wi-Fi to streaming apps.

Furthermore, modern travelers are increasingly prioritizing experiences over things. As they budget for 2024, the top focus for those surveyed by Hilton is culinary experiences. Second to that, 47% of travelers will prioritize exploration and adventure, with Gen Zers and Millennials carving out more budget for these types of experiences than the other generations.

While experiencing the destination and local culture will be a top reason for travel in 2024, two-thirds of travelers admit the subject of environmental change can be overwhelming as they consider their