generalHotel Dive··1 min·For: GM, Revenue, Marketing, Owner
Holiday Travel Outlook Shows Trade-Offs and Trade-Ups
Despite rising airfare and hotel costs, holiday travel demand remains resilient as travelers balance tighter budgets through strategic spending trade-offs. The market exhibits a clear K-shaped divide, with budget-conscious consumers downgrading accommodations while affluent travelers drive demand for luxury and extended stays.
Key Takeaways
- 1Hopper reports Christmas hotel rates are up 18% year over year to $197 per night, while Thanksgiving rates hold flat at $170.
- 2PwC reports 38% of holiday travelers plan to trade down to budget or midscale lodging, with millennials reducing travel spend by 37%.
- 3KPMG finds high-income demand remains strong, with 34% of holiday travelers intending to book luxury properties compared to 28% last year.
Source: Hotel Dive
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