As the holiday season approaches, Sojern, a travel-focused digital marketing platform, has revealed key trends in traveller spending.
With rising inflation and economic concerns, many consumers are opting for road trips over air travel, though demand for luxury accommodations remains high. Sojern reports a 1.7% and 1.4% rise in upscale and luxury hotel prices, respectively, compared to last year, while economy lodging remains stable.
Noreen Henry, chief revenue officer at Sojern, noted that travellers are returning to popular, often expensive cities. “Unlike the pandemic where travellers chose less crowded destinations, those who are travelling are going back to more popular and expensive cities—and they’re willing to pay a premium,” she said.
In the US, domestic air travel during Thanksgiving is up 4% from 2023, with Orlando being the top destination. However, domestic travel for Christmas is down 15%, while international travel to Europe and Asia is up 2% and 9%, respectively.
Europe remains a prime holiday destination, with cities like London and Paris seeing high demand. While domestic travel in Europe has dropped, flight bookings to Asia and other regions are increasing. London captures 79.1% of flight bookings, and Germany and Austria continue to attract international visitors for their Christmas markets.
Japan has emerged as a top ski destination this year, with hotel bookings up 417%, a shift away from traditional ski destinations in Europe and North America. Meanwhile, the UAE is preparing for the Abu Dhabi Grand Prix, with international bookings up 4%.
These trends reflect a growing focus on immersive, experience-driven holidays, with travellers willing to spend more for personalised, memorable experiences.