The value
driven traveler

Despite economic headwinds for Americans, travel continues to grow. In the US, interest rates have sustained at some of the highest levels seen since the start of the 2007 financial crisis. Though inflation has slowed from highs of 8.5% in 2022, price growth continues at a rate higher than we have seen in the last 10 years. Millions of Americans are struggling with the rising cost of living, compounded in recent weeks by concerns around the impact of impending tariffs on imported goods.

Despite headwinds plaguing the American consumer, global travel expenditure has continued to grow. In 2023, gross travel bookings grew 13% compared to 2022, and are set to grow by 4% - 6% annually through 2027. This is no surprise when you consider that 33% of American travelers say they spend more on leisure travel this year compared to last and a further 53% say they will spend the same as last year.

American travel expenditure displayed a resilience first explained by “pent up demand” after the pandemic, but now better explained by a generational shift in spend prioritization. Americans, many of them younger adults in the GenZ and Millennial age brackets, continue to protect and expand their travel expenditure despite headwinds. In order to compete in a growing and highly competitive travel space, it's key to understand what drives the modern travelers’ purchasing decisions during the shopping and booking process.

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