Skift Research: State of Travel 2024
In many ways, 2024 represents the start of a new era for the travel industry. We have broken through to a post-pandemic world. The state of travel in 2024 is strong. Skift Research explored the latest trends reshaping the travel industry that are steadily transforming how travelers plan, experience, and enjoy their journeys.
Consumer Trends
Solo Travel – A Trend That’s Here to Stay:
Solo travel also is increasingly popular among older demographics, with travelers aged 55-65 now comprising 27% of solo leisure travelers.
- The popularity of solo travel has surged, with Google searches for ‘Solo Travel’ doubling in 2023 compared to 2018.
- #solotravel has seen a tenfold increase on TikTok over the past three years and has amassed over 7.9 million posts on Instagram.
- The global solo travel market is set for significant growth:
- Global solo travel market size is likely to expand at a compound annual growth rate of 13.5%
- By 2033, solo travel is poised to reach a valuation of $1,508 Billion.
- Solo travel is increasingly popular among older demographics:
- Contrary to the stereotype of younger solo travelers, travelers aged 55-65 now comprise 27% of solo leisure travelers.
Wellness tourism is poised for remarkable growth:
- Wellness tourism is expected to experience robust growth, with a compound annual growth rate of 36.2% from 2020 to 2022
- Projections indicate continued expansion with a compound annual growth of 16.6% from 2022 to 2027, quadrupling the number of wellness tourists.
- Nature tops the list for wellness vacation must-haves
- 79% of people prioritize accessible nature and outdoor activities
- Other priorities include healthy food options (75%) peace and quiet (60%) and access to spa treatments (59%)
- Wellness tourists outspend non-wellness counterparts, with international wellness tourists spending 41% more, domestic wellness tourists spending 175% more.
Providing a Positive Customer Experience Is Crucial:
- Providing a positive customer experience is essential for tourism businesses
- 21% of guests chose to stay in a hotel primarily for customer service, highlighting its importance over standardized services (17%) and price (9%).
- In the travel sector, particularly with airlines and hotels, there exists a notable gap between consumer experience and expectation.
- Airlines show a 33% gap, indicating significant challenges in meeting expectations.
- Hotels, with a 10% gap, show a comparatively lower disparity, yet there remains room for improvement.
AI powered tech tools will steadily impact travel:
- Data suggests that 37% of people have actively used AI-based apps for travel planning and those numbers are steadily increasing.
- Gen Z and Millennial travelers favor personalized travel recommendations from AI systems. Key preferences include:
- Destination suggestions (17%)
- Activity recommendations (16%)
- Dining options (12%)
Washington County Hotel Performance Continues to Strengthen
According to STR, the overall occupancy rate at Washington County hotels was nearly 80% during the month of July. Compared to July 2023, this represents a 5.9 increase (79.6% vs. 75.1%). The average daily rate (ADR) increased by 3.7% to $148.78, and the revenue per available room (RevPAR) increased 9.9% to $118.42. Compared to other destinations in our competitive set, Washington County’s hotels are outperforming other Oregon counties, with the exception of Marion County, which had an occupancy level of 79.9%. To date, Washington County has 57 hotel properties with a room inventory of 6,035.
Source: STR, July 2024
Short-Term Vacation Rental Overview
According to AirDNA, the short-term vacation rental market in Washington County saw mixed results in July 2024, compared to July 2023. The vacation rental data set analyzes Airbnb and VRBO rental trends.
Throughout the month, there were 842 vacation rental listings in the county, a 5.1% decrease. While the occupancy rate increased 3.2% to 74%, the number of booked listings decreased 5.5% to 813.
The average daily rate was $199, a 6.2% decrease from July 2023. Vacation rentals also saw a slight decline in revenue per available room (RevPAR), which decreased 3.2% from last July to $148.
Overall, when looking at this specific market, the majority of listings are for one bedroom (more than 6,500 listing nights), with three bedrooms behind with more than 4,000 listing nights. The average length of stay in Washington County is 3.8 nights.