The summer holidays present a seasonal change in demand for individuals and families as they increase spending in typically discretionary sectors. For example, travel and tourism expenditures soar as people embark on vacations, both domestically and internationally. This includes transportation expenses, accommodation costs, and various activities and attractions. Additionally, dining and entertainment expenses tend to rise as people dine out more frequently and participate in leisure activities such as concerts, festivals, and theme parks. Outdoor and recreational equipment sales also see a surge as individuals engage in outdoor pursuits like camping, hiking, and water sports. Lastly, retail sectors such as fashion and beauty witness increased sales as people refresh their wardrobes and seek products for their summer adventures.
Behavioral Audience:
Summer is by far the most popular time for Americans to leave their homes and explore the world. Traveling during the summer allows many Americans to escape from the heat to locations with either milder weather or that provide a better environment to ride out the heat. In a recent study, “59% of respondents said that they have or will take a vacation during this summer. 46% of those respondents said they will take their summer vacation during July, making it the most popular month for summer travel.”
Surveys show that during the June to August period, people are willing to spend more at bars, restaurants, and hotels. A recent study from Bank of America showed that 68% of Americans plan to take a vacation this year. The upcoming summer months might “set a record or be close to it” in terms of room occupancy, according to Chip Rogers, president and chief executive of the American Hotel & Lodging Association. Hotel chains such as Marriott, Holiday Inn, Hampton Inn, Hilton, Holiday Inn Express, Hyatt, and many more have all seen near-total, if not complete recoveries from the pandemic in the last couple of years, with many even surpassing their pre-pandemic successes.
“The U.S. hotel industry is projected to achieve 1.3 billion occupied room nights in 2023, slightly exceeding 2019's total. The 2023 projection is a 56.9% improvement over 2020's low of 831.64 million occupied room nights. From 2021 to 2022, U.S. hotel demand improved by 11.1%.” - American Hotel and Lodging Association.
Summer travel has always been a significant segment of the travel industry. With the impact of the pandemic, the landscape of travel has changed significantly, with consumers not only eager to get back out into the world but also willing to spend more on their vacations. This surge in spending is a clear indication that Americans are eager to make the most of their vacations, possibly making up for the time lost during the pandemic. It's expected that the average American household will spend $2,830 on their summer vacation in 2023. This figure is 7% higher than in 2022, 33% higher than in 2021, and a whopping 50% more than in 2020.
According to Google Flights search data, the most popular destination for Americans in summer 2023 — specifically, June through August — is London, followed by Cancun, Mexico; Paris; Orlando, Florida; Rome; and New York City. During the pandemic, the popularity and frequency of flights were all cut back. In 2023, however, compared to pre-pandemic spending in 2019, the projected average household spending for 2023 represents a 39% increase. This dramatic upswing suggests a robust recovery for the travel industry, which was hit hard by the pandemic.
Market Research:
Families with children: Families with children are a significant target audience for summer travel. They are looking for destinations that offer a variety of activities for children, such as theme parks, water parks, and beaches. In 2022, there were an estimated 2.7 billion family travelers worldwide. This number is expected to grow to 3.2 billion by 2023.
Couples: Couples are another major target audience for summer travel. They are looking for destinations that offer a romantic atmosphere, such as secluded beaches, mountain getaways, and wine country. Honeymoon travel is also a significant market within the couples segment. The Wedding Report states that around 2.3 million couples get married in the United States each year, and many of them embark on honeymoons to celebrate their newlywed status.
Adventure Seekers: Adventure seekers are thrill-seekers who crave excitement and adrenaline-inducing experiences during their summer vacations. The average age of an adventure-seeking traveler is 35 with 51% women and 49% men. Some popular adventure travel destinations include Nepal (hiking in the Himalayas), Costa Rica (whitewater rafting and surfing), New Zealand (hiking, skiing, and kayaking), Tanzania (climbing Mount Kilimanjaro), and Peru (hiking the Inca Trail).
Solo travelers: Comprising individuals who embark on journeys by themselves, are a growing and diverse target audience for summer travel. Seeking independence, self-discovery, and adventure, solo travelers embrace the freedom to explore the world on their own terms. With a wide range of motivations and interests, they value opportunities for personal growth, cultural immersion, and connecting with like-minded individuals. 72% of American women are now planning to go on solo trips. Online searches for terms including ‘solo travel’ have increased by more than 267% since December 2020.
Luxury Travelers: Luxury travelers and business professionals seeking summer travel experiences represent a discerning and affluent target audience. With refined tastes and a desire for exclusivity, they prioritize comfort, convenience, and exceptional service. Whether they are jet-setting executives or high-net-worth individuals, this audience seeks sophisticated destinations and memorable experiences that align with their status and professional aspirations. According to a recent survey conducted by Flywire Corporation, a leading global payments enablement and software company, it was found that 83% of luxury travelers intend to increase their travel expenditure in 2023 compared to the previous year. Moreover, the survey highlighted that 84% of these luxury travelers plan to extend the duration of their upcoming vacations, demonstrating a continued preference for immersive and distinctive travel experiences.
Young Travelers (Students or recent graduates): Comprising students and recent graduates, form a dynamic and adventurous target audience for summer travel. Eager to explore the world, they possess a sense of freedom and curiosity that makes them ideal candidates for exciting and immersive travel experiences. Firms can target young travelers by utilizing travel influencers on TikTok to advertise budget-friendly holidays with other young people at party destinations like Prague, Budapest, Krakow, and Belgrade. Even though young people prefer cheaper holidays, however, they are the highest spenders when they travel spending around $3,500 per trip and $60 a day. This could be due to younger people preferring to spend more on parties which can be very expensive.
The summer travel market during July and August presents a promising landscape with opportunities for businesses in the travel and tourism industry. With an increase in discretionary spending, individuals and families are eager to embark on vacations, both domestically and internationally. By understanding the behavioral audience, including their preferences, spending habits, and travel trends, companies can tailor their offerings and marketing strategies effectively. Key target audiences for summer travel include families with children, couples seeking romantic getaways, adventure seekers, solo travelers, and luxury travelers. Some ideas to engage with your target audience include:
Family-Friendly Packages: Develop all-inclusive family vacation packages that cater to the needs of families with children. Partner with popular theme parks, water parks, and family-friendly resorts to offer exclusive deals and promotions. Highlight child-friendly amenities, such as kids' clubs, playgrounds, and supervised activities.
Romantic Getaways: Create tailored packages for couples seeking romantic experiences. Collaborate with luxury resorts, boutique hotels, and wineries to offer intimate settings and special experiences like couple's massages, private dining, and scenic tours. Use targeted social media ads to reach engaged couples looking for honeymoon destinations.
Adventure Travel Deals: Utilize captivating visuals and storytelling in your marketing efforts to attract adventure seekers. Showcase thrilling experiences like hiking, rafting, and wildlife encounters in exotic locations. Collaborate with adventure travel influencers to reach a wider audience and build credibility.
Solo Traveler Packages: Design solo-friendly travel options that emphasize safety, community-building, and cultural immersion. Offer group tours with like-minded travelers or promote destinations known for being solo-friendly and welcoming to solo explorers.
Luxury Experiences: Tailor exclusive and high-end travel packages for luxury travelers. Partner with luxury hotels, private tour operators, and premium travel services to offer personalized itineraries, VIP experiences, and access to exclusive events or locations.
Youthful and Budget-Friendly Offers: Create budget-friendly travel packages specifically designed for young travelers and recent graduates. Promote party destinations and adventurous experiences that appeal to their sense of adventure. Leverage popular social media platforms like TikTok and Instagram to reach and engage with this audience.
Flexible Booking Options: Offer flexible booking and cancellation policies to accommodate uncertainties related to travel during the post-pandemic era. This will appeal to all audience segments as it provides reassurance and encourages early bookings.
Remember, successful campaigns require continuous monitoring and analysis of market trends and customer behavior. Stay up-to-date with industry insights and adapt your strategies accordingly to maximize reach and engagement with target audiences.