31 January Revenge Travel & Why Experience Spending Could Be a New Normal January 31, 2024 By Melisa Rana Commercial Real Estate News, Property Investment hotel, real estate trends 0 REVENGE TRAVEL & WHY EXPERIENCE SPENDING COULD BE A NEW NORMAL January 31, 2024 | Commercial Real Estate News, Property Investment | real estate trends, hotel Since international lockdowns during the pandemic caused millions to delay or cancel vacation plans, people have flocked to airports. A trend known colloquially as “revenge travel” has resulted in a surge of people reconnecting with family and friends, seeking out adventure, and pursuing “payback” for lost opportunities. This fad has proven to be a boon to the recovering post-pandemic hospitality and travel industries, but as time goes on, many are beginning to wonder if the benefits of revenge travel may be coming to an end. So, let’s look at the facts and factors at play. Is 2024 the year we finally say goodbye to revenge travel, or is there evidence to suggest a new normal in travel and hospitality? Factors Putting Revenge Travel to Bed While the term “revenge travel” was born on social media, the impact felt by hotels and airlines everywhere has been very real and tangible. According to a recent Deloitte study, the percentage of Americans who planned to stay in paid lodging during summer travels increased for the third straight year, and the average number of trips increased in 2023: from 2.3 trips in 2022 to 3.1 in 2023. The steady climb of vacationing since 2021 may finally be coming to an end, according to some. This is due to a combination of factors that put a strain on leisure travelers: Inflation continues to limit general spending from all consumers as supply chain issues and pandemic-era stimulus spending have caused nearly everything to rise in price. In particular, families are having to spend more at the grocery store and at the gas pump, which means many are beginning to rethink their travel plans. Student loan payments have also resumed, which disproportionately impacts travel-hungry millennials and Gen Zers. The end of the student loan pause may leave an impact across many commercial real estate sectors, namely multi-family properties and clothing retailers. Travel into North America is slowing down from markets like Europe and Southeast Asia. While there are a number of factors affecting international travel plans, reporters at CNBC suggest that revenge travelers are losing steam, with those waiting to take their trips having finally gotten the desire out of their systems. The recent increase in travel interest may simply be running its natural course and soon return to a pre-pandemic status quo. However, other signs should encourage hospitality and travel investors that new priorities and modern lifestyles just might mean we’re heading into a new normal. Why Revenge Travel Might Not Be A Passing Fad We’ve spoken previously about the rise of competitive socializing with activities like Topgolf and pickleball among millennials and Gen Z. In short, market trends are showing that young people are increasingly choosing to spend money on experiences and “adventures” rather than on paraphernalia (see more from the Seattle Times to learn about the trend towards leisure time and travel). In addition, the ongoing tug-of-war between corporations and their workers about heading back into the office continues to send ripples throughout every sector of CRE. While the hesitation from workers to give up their remote work freedoms is bad news for office space investors, hotels and destination businesses are capitalizing with new amenities targeting “work-from-anywhere” travelers. The post-Covid revenge travel trend might be over, but hotels could continue to see high traffic despite this. Inflation is impacting everyone’s spending today, but once that cools, consumers will have more freedom to spend on whatever they prioritize most. For the next generation, this might mean great news for the travel and hospitality sectors. For more on the latest commercial real estate news and trends, you’re in the right place! For experienced, quality commercial inspection services nationwide, speak with our National Accounts team. Comments are closed.