Datonics Research - Winter Travel

Winter travel in the United States encompasses a diverse range of destinations and experiences, both domestically and internationally. Domestically, travelers are given abundant choice when it comes to destinations. Travelers can flock to snow-covered mountains for skiing and snowboarding, particularly in states like Colorado and Utah. To major cities such as New York and Chicago, who despite their chilly weather, attract visitors with their festive holiday atmosphere, shopping, and cultural events. Or, on the warmer side, states like Florida, California and Hawaii which remain popular for their sunny beaches and outdoor activities.

Internationally, American travelers tend to seek warmer climates or unique winter experiences. Destinations like the Caribbean and Mexico are perennial favorites for their beaches and resorts, offering an escape from the cold. Meanwhile, European cities, with their Christmas markets and historic winter charm, draw those looking for a cultural holiday experience. Additionally, adventure travel to places like Iceland for Northern Lights viewing or to Canada for winter sports is also popular among U.S. travelers during the winter months.  

Behavioral Audience

The winter holidays of 2023 are set to see a significant number of Americans traveling either domestically or internationally. A study by Forbes found that “The vast majority of U.S. households will be traveling in the next few months: 15% of survey respondents indicate they will take one trip between October and December 2023, while another 38% plan to take two trips in the same time frame” (s). Additionally, it was found that during winter 2023 more travelers will be flying (74%) rather than driving (72%) to their destinations with 57% of individuals who are flying doing so both domestically and internationally. Statistics published by the United Nations World Tourism Organization (UNWTO) show that overall, in 2023 travel has reached 90% of pre-pandemic levels with 22% more international tourists in the third quarter of 2023 compared to the same period in 2022 with trends set to continue through the end of the year. 

  • Family-focused Travelers: These individuals prioritize family-friendly destinations and activities. Their travel decisions are heavily influenced by the needs and interests of children, and they seek destinations offering a mix of entertainment, education, and relaxation suitable for all ages.

  • Luxury and Comfort Travelers: Focused on relaxation and indulgence, these travelers are drawn to high-end accommodations and services. They prioritize comfort and luxury, often seeking all-inclusive resorts, spa retreats, or exclusive tours.

  • Social Travelers: This audience travels primarily to socialize, whether it's visiting friends and family or meeting new people. They prefer destinations that are popular and offer a variety of socializing opportunities, from nightlife to group tours.

  • Adventure and Sports Enthusiasts: Winter sports enthusiasts, nature lovers, and adventure seekers fall into this category. They look for destinations that offer skiing, snowboarding, hiking, or other outdoor activities. They prefer locations with natural beauty and adventure opportunities.

  • Budget-Conscious Travelers: Price is a key factor for this group. They look for affordable travel options, including budget accommodations, off-peak travel times, and destinations that offer good value for money. They are willing to compromise on luxury for cost-effectiveness.  

Market Analysis:

Travel Volume: The market analysis for winter travel in 2023 indicates a significant travel volume among Americans. According to AAA and the Deloitte Holiday Travel survey, approximately 115.2 million travelers are expected during the year-end holiday period, a figure that reflects a considerable increase over previous years. 

Travel Destinations:

  • Domestic: Popular domestic destinations continue to include warm weather spots like Florida and tourist hotspots such as New York and Las Vegas. These locations draw travelers seeking either sunny escapes or vibrant urban holiday experiences.

  • International: Internationally, there is a noticeable increase in travel to destinations in the Caribbean, Mexico, South America, and Asia, reflecting a growing interest in both tropical getaways and culturally rich travel experiences. Destinations such as Las Galeras in the Dominican Republic, Fasmendhoo in the Maldives, and Hong Kong are emerging as trendy international travel spots.

  • Spending Trends: Studies have shown that there Americans have shown a significant willingness to invest in their travel experiences, despite various economic factors. According to PwC's 2023 Holiday Outlook, consumers plan to increase their spending by 7% this year, allocating an average of $1,530 for gifts, travel, and entertainment. This includes a robust 12% increase in travel-related spending over the 2022 holiday season. Tripadvisor's Winter Travel Index further supports this trend, showing that 93% of Americans plan to spend the same or more on travel than the previous year, highlighting the importance of travel despite economic concerns.

  • Travel Frequency: In 2023, the frequency of winter travel among Americans shows a marked increase, reflecting a strong desire to travel more frequently than in previous years. According to a survey by Vacasa about 47% of Americans are planning to travel during the winter season, with 64% of these travelers intending to travel more frequently than they did in the previous winter. The data indicates that, on average, Americans are planning to take five trips throughout this winter season. This trend of increased travel frequency can be attributed to a combination of pent-up demand for travel experiences and a general easing of health-related travel concerns.

Demographic Differences: 

  • The market analysis for winter travel in 2023 shows distinct demographic trends among American travelers. The Deloitte holiday travel survey highlights a broad increase in travel intent across all age and income groups, indicating a general eagerness for travel experiences. Notably, baby boomers, who had shown more hesitancy in traveling since 2020, are returning in significant numbers, accounting for about a third of the traveling public. This resurgence signifies a shift in the demographic makeup of travelers, with older generations now participating more actively in travel.

  • Gen Z, although representing a smaller share due to many still being under 18, is leading changes in travel trends, particularly towards social media and social consciousness in travel. NerdWallet’s report also sheds light on the generational differences in payment methods for travel, with Gen Z being least likely to use credit cards for travel expenses, in contrast to higher usage among millennials, Gen X, and baby boomers.  

Recommendations for Businesses:

  1. Family-Friendly Packages: Develop all-inclusive family vacation packages that cater to the needs of families with children. Partner with popular theme parks, water parks, and family-friendly resorts to offer exclusive deals and promotions. Highlight child-friendly amenities, such as kids' clubs, playgrounds, and supervised activities.

  2. Romantic Getaways: Create tailored packages for couples seeking romantic experiences. Collaborate with luxury resorts, boutique hotels, and wineries to offer intimate settings and special experiences like couple's massages, private dining, and scenic tours. Use targeted social media ads to reach engaged couples looking for honeymoon destinations.

  3. Adventure Travel Deals: Utilize captivating visuals and storytelling in your marketing efforts to attract adventure seekers. Showcase thrilling experiences like hiking, rafting, and wildlife encounters in exotic locations. Collaborate with adventure travel influencers to reach a wider audience and build credibility.

  4. Solo Traveler Packages: Design solo-friendly travel options that emphasize safety, community-building, and cultural immersion. Offer group tours with like-minded travelers or promote destinations known for being solo-friendly and welcoming to solo explorers.

  5. Luxury Experiences: Tailor exclusive and high-end travel packages for luxury travelers. Partner with luxury hotels, private tour operators, and premium travel services to offer personalized itineraries, VIP experiences, and access to exclusive events or locations.

  6. Youthful and Budget-Friendly Offers: Create budget-friendly travel packages specifically designed for young travelers and recent graduates. Promote party destinations and adventurous experiences that appeal to their sense of adventure. Leverage popular social media platforms like TikTok and Instagram to reach and engage with this audience.

  7. Flexible Booking Options: Offer flexible booking and cancellation policies to accommodate uncertainties related to travel during the post-pandemic era. This will appeal to all audience segments as it provides reassurance and encourages early bookings.

 To effectively target and engage with your desired audience in the dynamic travel market, it's crucial to maintain an ongoing and thorough analysis of market trends and consumer behaviors. This proactive approach involves regularly updating your knowledge base with the latest industry insights, which allows you to fine-tune your marketing and operational strategies to align with evolving consumer preferences and market conditions. By staying abreast of these changes and adapting your tactics accordingly, you position your business to better connect with your target audience, enhancing both reach and engagement. This continual adaptation not only helps in anticipating customer needs but also in identifying new opportunities and staying ahead of competitors in the ever-changing travel industry landscape.