Holiday travel remains steady: PwC

In addition, Gen Z and millennials are driving holiday travel spending. Millennials are planning to spend $751 (+12% from 2023), while Gen Z is planning to spend $639 (+42% from 2023). Gen X is planning to spend $481 (-21% from 2023) and Baby Boomers are planning to spend $321 (+2% from 2023).

Here’s a summary of PwC’s findings:

Holiday travel remains steady, with 46% planning to travel this season (compared to 47% in 2023).

• 39% of consumers who plan to travel within the U.S. and 50% who plan to travel internationally during the holidays also plan to spend more overall – on gifts, travel and entertainment – throughout the season compared to all other consumers.
• Domestic travelers plan to spend $2,500, while those planning to travel internationally have budgets topping $4,300. Non-travelers are expected to spend ~$900.
• A striking 55% of men plan to travel this year, compared to 42% of women. Men also lead 2024 holiday spending, increasing their budgets by 13% compared to last year. Men are expected to spend $2,018, $714 being spent on travel.

People are generally less stressed about travel disruptions this year.

For consumers, levels of concern around the following have dropped compared to 2023:

• Rising travel costs (61% in 2024 versus 68% in 2023)
• Gasoline prices (58% versus 65%)
• Rising hotel costs (54% versus 61%)
• Flight cancellations (51% versus 60%)
• Long delays at check-in/security (50% versus 58%)

Though concerns about travel disruptions have eased since last year, costs and budgets remain top of mind.

• 85% of consumers are cutting back on discretionary spending, including 31% planning to cut back on trips and vacations compared to last year.
• 56% of travelers are opting to stay with friends and family this year, an 11% increase compared to 2023. This cost-effective option is particularly popular among those feeling the economic pinch, with 63% of consumers who plan to spend less this holiday season choosing this accommodation.

Shifting travel trends signal new opportunities for airlines and hotels.

• Gen Z and millennials are driving holiday travel spending. Millennials are planning to spend $751 (+12% from 2023), while Gen Z is planning to spend $639 (+42% from 2023). Gen X is planning to spend $481 (-21% from 2023) and Baby Boomers are planning to spend $321 (+2% from 2023).
• This growing pool of Gen Z and millenials who are driving travel spending reveals a critical opportunity for airlines and hotels to enhance mobile offerings as they’re looking for tech to increase efficiency and convenience. Contactless hotel check-in, keyless room entry and online booking are high on traveler wish lists, streamlining their journeys from start to finish.
• Sustainability remains important to millennials and Gen Z, with 75% of millennials and 67% of Gen Z saying sustainable travel is important, compared to 56% of Gen X and 35% of Baby Boomers.