People are traveling less, more cautiously and more domestically. But will it be this way much longer? Maybe not. Recent findings from Berkshire Hathaway Travel Protection offers insight into how travelers are feeling about hitting the road again.
Americans Are Taking Fewer Trips
Researchers at Berkshire Hathaway have been doing these studies for six years, and this is the first time they’ve seen such a high rate of cancelled trips and so few trips taken.
Family travel was the most common type of trip taken, and the most common trip cancelled, in 2020. Travel spending is down 23 percent from 2019 to 2020. More than 60 percent of respondents said they spent $5,000 or less on travel in 2020; it was 40 percent in 2019.
Millennials and High-income Travelers are Spending Twice as Much
Millennials and high-income travelers (earners of $100,000 or more) have spent between 64-188 percent more on travel than the average person in 2020. Millennials say they will spend an average of $15,964 on travel in 2020—63.9 percent more than the typical traveler. High-income travelers say they’ll spend $20,649 on travel—118 percent more than the average traveler.
While the data isn’t clear on the type of travel being favored by Americans, the boom in RV and domestic travel makes it is likely that a significant portion is being spent there.
High-income travelers and millennials are also much more ready to travel. According to the research, more than half of high-income travelers and millennials are ready to cruise in the next six months, as compared to 1/3 of all travelers.
People Want to Travel, but Aren’t Sure Where
Ninety-two percent of respondents plan to travel in the coming year. Most people plan on road-tripping (82 percent) or camping (79). Right now, less than 1/3 feel comfortable taking a road trip, and more than 2/3 feel they’ll have to wait 18 months or more before feeling safe enough for a cruise.