Fri, 26 November 2021 | economy retirement travel
The holiday season started this week with consumers showing they're ready to get back into the air. According to CheapOair, online searches of airline tickets for Thanksgiving and through the holidays are up 72% as compared to searches in August of this year. Comparing the same period, searches for US to International destinations are up 73%, and searches for international origin to US destinations are up 129%.
Travelers who aren't flying are likely to hit the road, with AAA predicting 53.4 million people traveling for the Thanksgiving holiday, up 13% from 2020. This brings travel volumes within 5% of pre-pandemic levels in 2019, with air travel almost completely recovering from its dramatic fall during the pandemic, up 80% over last year.
Consumer travel plans may be buoyed by increasing financial optimism. A recent survey by Mass Mutual found that nearly three-quarters (73%) of Americans are optimistic about their finances and over one-third are “very optimistic” (35%), up from the percentage who reported being very optimistic in July (27%) and February (21%).
Holiday shoppers are considering sustainability this year, with nearly three-quarters (73%) of Millennials saying they will factor sustainability into their purchasing decisions this season. Overall, more than half (54%) of the general population said sustainability factors, such as a brand’s adherence to sustainable practices or offering of eco-friendly products, will also factor into their financial decisions.
Deloitte seconded Mass Mutual's findings, estimating that holiday spend will increase to $1,463 in 2021, up 5% YoY, aided by a return to experiences. However, high-income households are driving the growth in holiday spending while lower-income households continue to struggle. Of those planning to skip shopping, 65% are from low-income households.
Deloitte also reports that in-store shopping bounced back from last year's pandemic low but that online shopping may now be a holiday habit. The firm estimates that holiday spending online accounts for over three-fifths (62%) of average spend for the season.
Shoppers are increasingly moving online for convenience. A new survey by Cloudli Communications found that while 94% of respondents want to support small businesses, 87% of patrons opt to shop online because purchasing locally is too inconvenient. The ability to text with local businesses may help reduce shopper reticence, with three-fourths (76%) of consumers reporting they'd be more likely to frequent a small-to-medium size business that offers text messaging. Consumers ranked phone calls and regular mail as the least preferred methods of business communication.