Update on Coronavirus’ Impact on American Travel–Week of March 30th

Update on Coronavirus’ Impact on American Travel–Week of March 30th



Key Findings to Know this Week

  • 66.1% of American travelers report trips affected by COVID-19, essentially flat from last week. While the near-term (March/April) shows the heaviest losses, the percent reporting cancelled and postponed trips in later months is increasing
  • While Americans predominately attach fear to traveling at the moment, they miss it: two-thirds agree they “can’t wait to get out and travel again” #whencoronavirusisover
  • However, nearly one-third of American travelers say they will change the types of destinations they choose to visit after the coronavirus situation is resolved; another 26.0% are unsure if they will
  • In the interim, 55.4% of American travelers have been taking action to support local businesses where they live



As of March 29th, 66.1% of American travelers report having trips affected by COVID-19, essentially flat from last week—and far less dramatic than the 20 percentage point gain between March 15th and 22nd.





While the near-term continues to show the heaviest losses from trip cancellations and postponements, the percent reporting cancelled and postponed trips in later months is increasing as the pandemic wears on.

In considering the ultimate impact of COVID-19 on travel it is critical to note that no data source right now captures the travel volume that never emerged because of the pandemic—the millions of trips that are typically inspired and planned in shorter windows…the lost months of travel.

The good news is that Americans MISS travel. Although when asked the first word they associate with travel right now, expressions of fear dominate (illustrating the excellent sense many Destination Marketing Organizations are demonstrating in their production of beautiful “#stayhomesavelives, we will be waiting to welcome you when it’s safe” content). Nevertheless, two-thirds agree or strongly agree that they “miss travel…I can’t wait to get out and travel again.”

After 9/11, fear was also strongly associated with travel. However, unlike the post 9/11 period, even deep discounts are not motivating Americans to commit to new trips—in fact, 40% disagree that such discounts make them more interested in travel in the next few months. So despite missing going on trips, American travelers appear to be listening to healthcare experts that the virus has the strongest say in their travel fate.

Another sentiment that will be critical to how the travel industry recovers is how Americans feel about the travel they used to do—and if they return to the same set of desires and trip experiences or alter them. As of this week, nearly one-third of American travelers now say they will change the types of destinations they choose to visit after the coronavirus situation is resolved. Another 26.0% are unsure if they will.



While they keep their wanderlust on simmer, American travelers are expressing their appreciation for the people upon whom great culture and experiences are often built. In total, 55.4% of American travelers report taking action to support local businesses where they live.



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Update on Coronavirus’ Impact on American Travel–Week of March 22nd

 

 

As COVID-19 spreads, so does its devastation on how Americans feel about travel. In the latest wave of Destination Analysts’ Coronavirus Travel Sentiment tracking study (collected March 20-22), nearly two-thirds (64.3%) of the 1,200+ American leisure and business travelers surveyed said their travel had been upended by the virus. This is up 20 percentage points from just one week prior and nearly six times what it was on February 22nd.


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Unfortunately, this impact appears to have resulted in more cancelled—rather than postponed—trips. As shown in the graphic below, 63.0% of American travelers who had travel affected by coronavirus have cancelled a trip (up from 55.1% on week prior), while the percent reporting they have postponed a trip has declined from 51.0% to 46.7%. Other reported impacts on travel—such as changing destinations–have not yet been significant.
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One of the most challenging findings from this week’s survey is that the percent of American travelers optimistic the coronavirus situation will be resolved by the summer travel season has declined to 37.5%, down from 52.5% last week. 
What was seemingly a glimmer of hope just a week ago has been diminished.

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One of the key factors in this week’s results are Baby Boomer travelers who, within a few days time, have gone from the generation reporting the least impact to their travel to the generation most impacted.  A week ago, 38.2% of Boomer travelers reported their travel had been affected by the coronavirus situation, a figure that has dramatically risen to 73.1%. And while 51.0% of Boomer travelers agreed last week that the coronavirus situation would be resolved by the summer travel season; now just 28.2% feel that way. 

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We look forward to the time when such results are less sobering. Fellow travel and hospitality professionals, please know our hearts join yours in hope for the speediest recovery of our beloved industry.

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We appreciate your support of this research from our small but mighty team of devoted tourism researchers. If you would like further and deeper insights from the complete study, you can learn more about purchasing here.

Coronavirus’ Impact on American Travel

 

NOTE: An enormous “THANK YOU” to our friends at the Virginia Tourism Corporation for allowing us to share this data from an ongoing American Travel Sentiment study Destination Analysts conducts on the organization’s behalf.

Between February 19th and 21st, Destination Analysts fielded a survey to a random sample of American travelers which, among other topics related to their travel, inquired about the impact of the coronavirus on their current and future travel plans. During this (now relatively blissful) period, the virus had not yet had such an extensive global reach. There were only a few cases of coronavirus in the United States and no related deaths. With a few exceptions, most international and domestic flight service was near normal levels. Italy was amongst the top foreign countries Americans wished to visit.

Although there has been a rapid change in circumstances (as pandemics tend to do), looking at American travelers’ response to coronavirus at that time gives us some view into the scale of its ultimate impact.

During those few days in late February, 11.4 percent of American travelers said that the coronavirus had affected their travel in some way. Another 8.2 percent felt unsure. Being younger and having children appeared to be key factors in whether one was impacted: 20.1 percent of Gen Z travelers said their travel was affected, compared to just 8.0 percent of Boomers. Those with children under the age of 18 in their household were more than twice as likely to say their travel was affected compared to those without kids (18.4% vs. 7.9%)

 

For those who said their travel was in some way impacted by coronavirus, we asked a follow up question as to how. As shown in the accompanying chart, most commonly a trip that was planned for the subsequent few months had been cancelled, and concerns about traveling had increased. Also note that at the time, one-in-five of these travelers who were affected said a trip that had been planned in the previous month had already been cancelled.

 

 

Interestingly, how an American traveler was impacted varied greatly by age. Millennial and Gen Z travelers were much likelier to say a trip in the coming months had been cancelled compared to Baby Boomer travelers ( 42.4% vs. 15.5%). Older travelers were likelier to express increased concern about traveling (55.6% of impacted Boomers compared to 12.1% of impacted GenZ and Millennial travelers). Well over half of Baby Boomer travelers who felt that their travel had been impacted by coronavirus said they were avoiding certain destinations; comparatively, less than 10 percent of impacted younger travelers felt that way. Millennial travelers also appear largely unwilling to give up travel—just 6.8 percent of those travelers whose plans were affected by coronavirus said they “will not take as many trips as I normally would have.”

The study of the changing extent and impact of the coronavirus on travel and the travel industry is, of course, ongoing. To our clients and industry partners, please be assured we will update you as much and as often as we can.

Travel Demand Post Coronavirus

One of the theories the travel industry is hopeful about is that amidst the current reality of flight cancellations, travel advisories and quarantines, a deep well of wanderlust will be building amongst travelers—and like prisoners in a jailbreak, will rush to express itself once opportune to.

This would be an ideal outcome, given the thousands of tragic deaths and devastation the virus has caused the global economy. Adding salt to this deep wound, prior to the coronavirus unleashing its havoc, the travel industry looked poised to have a good year. Domestically, in our January The State of the American Traveler study, Americans reported a greater number of leisure trips, and their optimism for increased leisure travel in 2020 had inched up from 12-months prior. Findings from our 2020 The State of the Global International Traveler study showed similar enthusiasm amongst travelers across much of the world–and, sadly, demand for Japan and Italy—countries now facing major travel restrictions—were amongst the highest globally.

What might we expect after the pandemic hopefully ceases? Let’s look more deeply at China as a case study on what we might hope for.

Destination Analysts fielded its annual The State of the Global International Traveler survey to a random sample of Chinese international travelers between January 19th and 27th. During these nine days, the first dozen deaths from coronavirus were recorded, Wuhan and 12 other cities were placed on lock down, Lunar New Year celebrations were cancelled and travel restrictions were imposed. The full extent—and consequent impact—of the virus on the Chinese and world’s health systems, travel systems and economies was still yet unknown.

However, at that time, Chinese international travelers expressed increased optimism for their international travel in 2020 (65.5% said they would take more international trips this year than they did the year prior, and 62.5% said they would spend more on their international travel this year than previously), returning to levels in 2016 and 2017—when Chinese arrivals to the United States were in a period of strong growth. One-in-five Chinese international travelers said that their global travels would be an “extremely high priority” in terms of what they choose to spend their financial resources on this year. Another 28.2% said it would be a “high priority.” This sentiment, along with their anticipation to travel and spend more internationally (in fact, the average Chinese international traveler said they would be spending US $3,542 on international travel this year), puts them as among the most aspirational international travelers in the world.

When Chinese international travelers feel a semblance of normalcy again, the United States looks to be a beneficiary. When asked to name—in an unaided format—the top three foreign countries they most wanted to visit in the next year, the United States was written in by 41.1 percent of Chinese international travelers—it was second only to Japan (50.5%) and nearly double the third most written in destination, France (22.3%).

So as we send gratitude and support to healthcare communities across the globe, and wish for healing and recovery soon, as we look to the future, we as the travel industry may have some reasons to feel hopeful.

For more and deeper insights into global travel trends, order the 2020 The State of the International Traveler report by emailing info@destinationanalysts.com.