To help you understand what’s happening in the travel industry, our highly experienced Kiplinger Letter team will keep you up to date on the latest developments and forecasts (Get a free edition of The Kiplinger Letter or subscribe). You’ll get all the latest news first by subscribing, but we’ll publish many (but not all) of the predictions a few days later online. Here are the latest…
The upcoming summer travel season will be extraordinarily busy and exceed pre-pandemic levels, although it will look a little different than the last two summers, when Americans caught the travel bug after years of COVID-19 restrictions. In decline are so-called revenge trips, a post-pandemic phenomenon in which Americans who were desperate to make up for lost time booked exotic, and often expensive, “bucket list” adventures.
This year, the trend has returned to more traditional vacation destinations and cost-conscious practices. But overall travel volume will reach all-time highs this summer. Online travel agency Expedia says flight searches increased 25% overall from June to August compared to the same period last year. And interest in international destinations in Europe and Asia increased by triple digits. The number of Americans who eventually book a trip this summer will be on par with last summer. But globally, 4.7 billion people are expected to travel in 2024, compared to 4.5 billion in 2019, with much of that travel taking place this summer. That means flights, hotels and attractions in the United States and abroad will be full to levels not seen in years.
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Domestic airfares will remain the same or slightly higher than last summer. Rates will begin to rise in May, peaking in late May and early June.
To save money, avoid holiday weekends and travel in late August if possible, when airfares will drop by more than $100.
International airfare will be a mix. Globally, prices will fall in most regions of the world compared to last year, although they will still be higher than pre-pandemic levels. But airfares will fluctuate significantly depending on the destination, so cheap airfares won’t be found everywhere.
Avoid holiday weekends and travel in late August, when airfares will drop by more than $100.
Flight disruptions are a definite possibility this summer as airlines struggle to get enough planes in the air to meet demand. Some carriers will be forced to reduce their schedules to deal with a lack of available planes due to production problems at aircraft manufacturers Boeing and Airbus.
When planning a trip, be wary of large events occurring locally that increase prices and decrease availability of hotels, restaurants and car rentals.
For Europe, avoid Paris during the Olympics in July and August.
The same applies to Germany, from mid-June to mid-July, when it hosts the quadrennial European Football Championship. [soccer] Championship.
And singer Taylor Swift’s European tour this summer will cause pricing and availability issues in every city where she performs.
Domestically, political party conventions in Milwaukee (July) and Chicago (August) mean that accommodations will be at a premium during these events if they are available.
If you’re traveling this summer, U.S. gas prices should be similar to or slightly higher than last year, ranging from about $3.50 to $4 a gallon, although some states are much more expensive. Even so, unforeseen international issues, such as the worsening of the situation in the Middle East, could suddenly increase the national average to well above 4 dollars.
Car rental prices will be slightly higher than last summer, with fleet availability improved compared to last year.
Prices and availability of national hotels will be in line with last year. But also consider short-term rental agencies like Airbnb, as this option can be more affordable and convenient, especially for families and groups.
As for where Americans are headed, interest in off-the-beaten-path places that became popular immediately after the pandemic hasn’t evaporated. A growing trend is “dupe destinations” – affordable alternatives to popular tourist spots. Think Liverpool to London or Quebec City to Geneva.
Another trend is “set-jetting” – traveling to destinations that are filming locations for TV shows and movies. While the concept is not new, the trend gained enormous momentum during the pandemic era when television consumption increased dramatically during lockdowns.
Other summer travel trends are “cool-cations” (summer vacations in destinations with mild climates to avoid potentially record heat) and “tourist trips” (traveling to a concert).
The strength of the US dollar and relatively low inflation are leading more Americans to travel to places where the dollar will go further, such as Southeast Asia. And there is growing interest in Japan, which lifted pandemic travel restrictions only last year.
New York and Los Angeles will top the list of most popular domestic travel destinations this summer, according to Expedia, followed by Seattle, Orlando and Las Vegas.
Internationally, Cancún, Mexico and London top the list. Next: Rome; Punta Cana, Dominican Republic; and Paris. Other destinations that are on the rise: Auckland, New Zealand; Hong Kong; Osaka, Japan; and Da Nang and Hanoi, Vietnam.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s ahead. come to make the most of it. your investments and your money.Sign the Kiplinger Letter.
