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2021 Travel Plans

WASHINGTON–Credit unions that issue cards with travel-related rewards programs may see a mild rebound in 2021, but the volume will remain down significantly from pre-pandemic levels.
Travel Plans

A new survey conducted by Morning Consult and commissioned by the American Hotel & Lodging Association (AHLA) shows consumers are optimistic about traveling again in 2021, with 56% reporting they are likely to travel for vacation this year.

“That represents a significant decline from pre-pandemic levels, when approximately 70% of Americans took a vacation in any given year, according to OmniTrak (TNS) data,” reported the AHLA. “Since the onset of the pandemic, just 21% of survey respondents reported traveling for vacation or leisure, and only 28% reported staying in a hotel. Prior to the pandemic, 58% of survey respondents said they stayed in a hotel at least one night per year for leisure, and 21% stayed at least one night per year for work.”

Other Findings
The survey also found that while consumers remain optimistic about travel, consumer confidence about staying in hotels is tied to widespread distribution of the vaccine: 11% say they will feel comfortable staying in a hotel when vaccines are available to the general public; 20% when a majority of Americans have been vaccinated; and 17% when they are personally vaccinated.
According to the trade group, the recovery of the travel industry is anticipated to take place in three phases: leisure travel, small and medium events, and group and business travel. While recovery will begin in 2021, full recovery is not expected until 2024.

While business travel itself will remain below 2019 levels for some time, business travelers express greater comfort in traveling for any reason compared to adults overall, and they are more likely to say they will travel more in 2021, the AHLA reported.

Role of Vaccines
“Leisure travel demand is projected to begin increasing in Q2-Q3 of 2021 as vaccine distribution increases across the country and consumers can connect with family and friends,” the organization said. “In the year ahead, Americans say they are most likely to travel for a family event such as a wedding or family reunion (51% likely to travel), while many are likel
y to travel over summer holidays, led by the Fourth of July (33%) and Labor Day (28%).”

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