Travelers Are Spending Big This Holiday Season-With Higher Expectations Than Ever

SAN FRANCISCO, Oct. 15, 2024 /PRNewswire/ -- Sojern, the leading digital marketing platform built for travel, today shares its latest travel data ahead of the holiday season and beyond. Travelers are eager to hit the road or skies, but economic concerns and inflation are widening the wealth gap. Compared to 2023, more consumers are opting for road trips over air travel, if they're traveling at all. Sojern data shows upscale and luxury hotel prices have risen by 1.7% and 1.4%, while economy lodging remains steady, reflecting growing demand for higher-end accommodations.

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"Unlike the pandemic where travelers chose less crowded destinations, those who are traveling are going back to more popular and expensive cities–and they're willing to pay a premium," said Noreen Henry, Chief Revenue Officer at Sojern. "We saw this with Taylor Swift's Eras Tour where booking interest traffic to European cities spiked 65% and hotel room prices were up 154%. This holiday season, we're seeing the same trends. From events to festive outings, travelers want  immersive adventures, and the travel brands that deliver personalized, magical experiences will win."

United States Travel Spikes for Thanksgiving and Christmas

With an estimated 4.7 million people flying over the Thanksgiving holiday, Sojern data shows that domestic flight bookings are up 4% in 2024 compared to the same time period in 2023, with Orlando taking the top spot as the Thanksgiving flight destination of choice.

Meanwhile, domestic travel during Christmas is down 15%, while travel to Europe is up 2% and Asia up 9%. Top destinations domestically are Honolulu, New York, which is expecting approximately 7.5 million visitors, and Orlando while the top destinations internationally are Mexico, the United Kingdom, Canada and Dominican Republic. While Mexico has long been a popular destination for Americans, flight bookings from the United States are down 8% this year. Instead, they're choosing the Dominican Republic, where flight bookings are up 14%.

European Cities Delight International Travelers While Europeans Flock to Asia

Europe's festive flair and array of Christmas markets have long attracted travelers from around the world–and this year is no exception. However, while travelers from around the world are packing their bags and jetting off to major European cities, Europeans have other plans. Currently, domestic flight bookings are down 26% and bookings within Europe are down 5%. Interestingly, flight bookings to Asia (14%), Latin America (3%), and non-conflict countries within the Middle East and Africa (3%) are all up, indicating that Europeans either prefer to drive for their holiday experiences or embark on long-distance adventures.

London, with its charming pubs, festive holiday displays, and as the host of World Travel Market, stands as Europe's top destination this season, capturing 79.1% of flight bookings and 89.7% of hotel reservations.

With bustling Christmas Markets, Germany and Austria have long been popular destinations. International travel to Germany is up 7% while travel to Vienna is scooping up 80% of Austria's holiday flight bookings.

Paris, with all its glitz and glamor, is still riding high off the 2024 Summer Olympics as one of the most in-demand destinations in Europe. Overall, domestic travel within France is down 41%, but international travel is only down 1%, with Americans looking to imbibe on French delicacies and stroll the markets. Much like other European destinations, domestic travel within Italy and Spain is down, but international travel is up 13% and 11%, respectively, with visitors choosing major cities, such as Rome, Milan, Florence, Venice, Madrid, and Barcelona.

Travel to Abu Dhabi and Saudi Arabia Spikes Ahead of Major Events and Peak Travel Season

Formula One (F1) events attract significant crowds. For instance, the 2022 Singapore Grand Prix boosted travel to the country by 63%. The UAE is gearing up for the Abu Dhabi Grand Prix (Dec 6-8), with flight bookings from the past 30 days showing a 9% overall increase for December. Regional bookings are up 13%, and international travel is up 4% compared to 2023. Meanwhile, Saudi Arabia is experiencing rising demand as it enters peak travel season, with international flight bookings up 15% and regional travel surging by 38%.

Travelers Skirt Traditional Ski Destinations in Favor of Japan

Holiday skiing has always attracted travelers, but this year their preferences are changing. Traditional destinations, like the German and Swiss Alps, are still in high demand, with hotel bookings up 20% and 42%, respectively. However, American and Canadian ski destination hotel bookings are down between 9% and 18% and European ski tourism is seeing similar patterns. Japan is emerging as a top ski destination, with hotel bookings up 417% compared to last year.

Chinese New Year Bookings are Down, with Three Months To Go

Chinese New Year in 2025 runs from January 28th to February 3rd and is driving travel across Asia Pacific. Singapore is typically a huge draw, but current hotel bookings are down 11.55% overall compared to the same period in 2024, with domestic bookings down 26%. Singapore is China's top destination for the holiday, capturing 14.8% of non-intra-regional Asia Pacific travel. While some Chinese travelers are flying for the holiday, flight bookings are down 18.82%. Hotel bookings are up 10.41% compared to 2023, indicating a higher demand for domestic travel, but likely by rail or car.

The Travel Landscape in 2025 and Beyond
Today's travelers are more experience-driven than ever, investing heavily in attending concerts, events, and major sports like the FIFA World Cup. In 2022, Qatar hosted the FIFA World Cup, spiking international lodging searches by 541% worldwide. Next up, Canada, Mexico, and the United States will host the 2026 FIFA World Cup, drawing travelers from around the world to cheer for their teams.

As travelers increasingly seek out experiences, they are willing to spend more, driving up both costs and expectations. In response, the travel industry is embracing innovative solutions, such as Generative AI, to better understand guests and deliver personalized experiences at scale. This year marks just the beginning, as the adoption of these cutting-edge tools is set to grow well into 2025 and beyond.

*Sojern data pulled as of Oct. 1, 2024

About Sojern

Sojern is a leading travel marketing platform designed to boost growth and profitability for the travel industry. The Sojern Travel Marketing Platform is a set of easy-to-use software and services that delivers unrivaled traveler insight, intelligent audiences, multichannel activation and optimization, and a connected guest experience—all in one place. More than 10,000 travel marketers rely on our platform annually to find, attract, convert and engage travelers. Founded in 2007, Sojern is headquartered in San Francisco, California with teams in the Americas, Europe, Middle East and Africa, and Asia Pacific.