As the nation emerges from its pandemic-era restrictions, higher-income millennials are leading the rush to get back to traveling, according to a new study published by Tripadvisor Inc (NASDAQ:TRIP) and Accenture Plc (NYSE:ACN).
What Happened: In a March 3 survey of 1,000 adults, 54% of respondents earning more than $50,000 said they were considering domestic air travel for their next trip later this year, with 25% of those earning $100,000 or more are considering flying abroad for their next trip.
Millennials earning above $50,000 were the most eager to be back in the air, with 58% considering a domestic flight and 25% looking to go overseas. Furthermore, 32% of high-earning millennials said they planned to increase their travel spending in 2021, almost double the level of the Gen Z and baby boomer respondents, while 37% of this deep-pocketed demographic said they were looking to spend more than $5,000 on an upcoming luxury trip.
Respondents who traveled during 2020 were more likely to express the urge to travel again this year versus those who sat last year out. One in three respondents said they were selecting a beach vacation as their next spring or summer holiday site while one in four were looking for city destinations.
Why It Matters: "It's fantastic to see U.S. traveler confidence returning, especially to destinations further afield," said Christine Maguire, general manager of global media business at Tripadvisor. "What is also encouraging for brands and destinations is that, among those planning to spend more than $5,000 on their next trip, as many as 62% have not yet made a booking — and they are eager to spend more on travel than ever before."
Furthermore, most of the vacation destinations will have staffing in place to greet the new wave of travelers. On May 7, the U.S. Bureau of Labor Statistics reported the leisure and hospitality industry led the economy in employment during April by adding 331,000 jobs, more than any other industry.