by Mia Taylor
Last updated: 7:30 PM ET, Fri August 2, 2024
If you pay any attention to the news, its hard to miss the frequent headlines about flight delays and cancellations caused by everything from staffing shortages to IT meltdowns.
Meanwhile, flight prices arent the most budget-friendly theyve ever been.
In the last year, for instance, the consumer price index for airline tickets rose 25 percent. That amounts to the biggest jump since 1989, which is when the Federal Reserve of St. Louis began following such data, according to a report from CNBC.
Amid these kinds of statistics, it wouldnt exactly be surprising if some Americans decided to pause for a minute on travel plans. And thats what new data from travel insurance marketplace Squaremouth seems to indicate.
A recent press release from the company says far fewer travelers are planning Labor Day trips this year, according to their own customer data. In fact, according to Squaremouth, 88 percent of Americans have decided to opt out of Labor Day travel, amid rising costs and flight delays and will instead stay home.
?
The travel industry has struggled recently amid global flight delays, increasing travel costs and a rocky start to hurricane season, and travelers are feeling the effects, says the companys press release.
Squaremouths data dive also revealed that:
- Trip costs are skyrocketing
More than half of Squaremouth travelers reported spending more on travel expenses compared to years past, with the majority attributing the increase to inflation and the rising cost of travel. ??Labor Day Weekend is proving no different, with an average trip cost of $2,696 - a staggering 25 percent increase over last year, says Squaremouth. - Travel delays are a top concern
Of travelers opting to take trips over the holiday weekend, the majority indicate concerns over flight cancellations and delays, while only 24 percent are concerned over heavy traffic and inclement weather.
Traveler awaiting flight at the airport. (Photo Credit: Song_about_summer/Adobe)
What travel advisors are seeing for Labor Day 2024
The experience of travel advisors across the country however, isn't necessarily in alignment with the Squaremouth data. Reached by TravelPulse to discuss Labor Day travel volumes and trends, many said they aren't seeing travelers opting out of the holiday, at all. And in cases where they are, its not necessarily as significant as 88 percent of travelers.
We have not seen any decline over the that weekend per se, but overall leads have definitely slowed down this summer, says JoAnne Weeks, vacation division director at Acendas Travel. We are attributing this to an upcoming volatile election and the cost of travel in general.
Debbie Misajon, founder of Hawaii-based travel advisory The Coconut Traveler, has seen some sluggishness this summer. But the causes in Hawaii may be greater than air travel hiccups and steep prices.
Historically, The Coconut Traveler has September luxury home bookings and itineraries confirmed by mid-June; however, this year September is down, says Misajon. Interestingly, our past September bookings have been largely on Maui, where the Lahaina community and island tourism numbers are still recovering as we near the one year anniversary of the wildfires.
Meanwhile, Alexandra Farrington, founder of Las Vegas, Nevada-based Acera Travel, says shes observed some hesitation around Labor Day travel this year, but many clients still intend to vacation over the popular holiday weekend.
Our experience doesn't quite align with the 88 percent opt-out rate reported in the survey, says Farrington. We're still seeing a significant number of clients planning trips, albeit with some shifts in their travel patterns. Many are opting for shorter, closer-to-home trips rather than completely canceling their plans.?
Where the Squaremouth survey does ring true for Farrington and her clients is around the concerns about flight disruptions. The issue of rising flight costs has also popped up more frequently of late, she says.
Still, the ultimate impact of those things? as irksome as they may be to consumers? varies.
Many travelers are budget-conscious this year, but rather than canceling trips entirely, they're finding creative ways to manage expenses, continues Farrington. This includes choosing less expensive destinations, opting for all-inclusive resorts to control costs, or utilizing travel rewards points to offset expenses.
Travelers are also finding ways to cope with the increasingly common flight disruptions that have been impacting their air travel experience. They're doing this by opting for alternative travel methods, rather than stay home altogether.
Interest in taking road trips is far more commonplace, as is train travel and exploring destinations that are accessible by direct flights? which helps minimize the potential for disruption, explains Farrington.
"While economic factors and flight disruptions are influencing Labor Day travel decisions, we're seeing resilience and adaptability among travelers, says Farrington. The desire to travel remains strong, but how travelers and travel professionals are approaching their trips is evolving in response to current challenges.
Luxury and last-minute travelers less fazed
Though not entirely surprising, it seems luxury segment travelers are even less concerned about the issues impacting the air travel industry.
William Lee, an advisor with Ohio-based Chima Travel says he's seen little to no impact on Labor Day plans among his upscale clients.
The majority of our clientele are baby boomers seeking luxury travel, because of this, we haven't seen a drop in bookings, explains Lee. This is mostly due to them being in retirement age and not needing to rely on holidays for extra vacation days.
And entirely at the opposite end of the spectrum as the Squaremouth data is LaDell Carter, founder and lead lifestyle luxury travel designer at Royal Expression Travels.
I beg to differ, says Carter after reviewing the data. We've seen a surge in Let's just do it before the summer ends and kids are back in school Labor Day travel requests, explains Carter.
What's more, Carter says she's seen a significant uptick in last minute travel bookings, particularly since the COVID-19 epidemic. And that trend continues strong this summer, including for the Labor Day holiday. Clients, she says, are seizing last-minute opportunities to travel and that has meant a steady stream of Labor Day travel requests, from charming domestic retreats to European adventures.
"While our clients do consider rising costs and frequent flight delays, they rely on our firsthand experiences and insights to make informed decisions," says Carter. "Our teams constant travel within the whirlwind of ups and downs provides us with the knowledge to recommend airlines with fewer delays and cancellations. Despite these challenges, our clients continue to travel confidently."
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