Travelers are seeking good value.

Travel demand is weaker in 2024 than in previous years, according to a new report by the consulting firm Deloitte. 

The report suggests it could simply be a normalization of the revenge travel trend—instead of focusing on one big, blockbuster trip, Americans are “rightsizing” their summer travel, booking one normal-length “big trip” and then booking fewer or shorter other, smaller trips over the same period. 

Deloitte reports that the average traveler planned 2.3 trips in the summer of 2024, compared to 3.1 trips in the summer of 2023, a number it says is similar to what travelers planned in 2022. The report also noted cost concerns driving some consumers to not travel at all, while consumers who still planned to travel are bumping their budgets up 10% to account for increased costs. 

Travel companies are reporting softer demand, which sent travel stocks into a slump. Disney has noted softening theme park demand, although it’s worth noting that the cost of a Disney theme park vacation has soared, leaving many travelers to shorten their trips or skip them altogether. The Deloitte study found that 34% of travelers who stayed home this summer said travel was “too expensive right now”, a jump from 26% in 2023. 

It’s important to clarify that those travelers who felt travel was “too expensive right now” did so as a reflection of how they perceived the value of travel—not as a result of their personal financial situation. The survey also asks respondents whether they’re not traveling because they personally couldn’t afford it, and that number dropped from 50% in 2023 to 39% in 2024, indicating that consumers who could afford to travel chose not to because they perceived it to be a poor value.

Hotel rates, the survey found, are up 3% vs. 2023 and 22% vs. 2019. Summer airfares from the U.S. to Europe are down 10% since 2023 but still up 10% vs. 2019. 

The Deloitte report also noted that it’s younger, less affluent travelers who are dropping out of the travel marketplace, deferring trips they otherwise might have taken. Consumers with household income lower than $50,000 per year made up just 19% of those who said they planned to travel this summer, compared to 31% last year. High-income travelers are still spending at their normal rates, increasing their share of the total travel population. Travelers in the Baby Boomer generation are also poised to increase their share. 

Still, travelers are seeking good value, Deloitte says, and there’s evidence that travelers across all income levels are looking for a good deal. Travel providers, they suggest, can keep travelers interested in spending money on travel by “delivering the best possible experience” to “pass the value test and remaining a spending priority”. 

Still, travel companies are anticipating a slowdown in travel demand. Marriott, Hyatt, Wyndham, and Expedia all joined Disney in noting demand softness and reduced their outlook for the rest of the year, but David Tinsley, a senior economist at Bank of America Institute told CNN that it’s “natural” that travel revenues would drop as inflation cools. 

High costs could also be shifting demand from Europe to more affordable destinations. Traveler intent to visit Europe was down 8% compared with 2023 (although it was still by far the most popular destination with just under half of travelers interested in visiting). Asia, where travel costs on the ground can be less expensive, saw the biggest jump, but it should also be noted that some Asian countries were among the last to retire pandemic-era travel restrictions that would have dampened travel interest. 

Still, Tinsley told CNN, this doesn’t mean travel demand is evaporating—merely adjusting. “It was always going to be tough to expect travel spending to be showing the kind of momentum it showed 12 months ago. I don’t think the current situation is particularly bleak—it’s reasonable to see more normalization playing out.”