Skip to content

Search

Latest Stories

Study: Most U.S travelers plan to vacation this year

Income level affects spending, less populated locations preferred

TRAVELERS ARE SETTLING into the new normal as the U.S. has started a slow recovery from the COVID-19 pandemic, according the third in the series of the Fuel’s COVID-19 Consumer Sentiment Study. Short road trips will be most popular at first, and for lower-income consumers will be choosing to have shorter stays.

The Fuel survey was sent out on April 30 and received more than 10,000 responses. As many as 62 percent of respondents said that they will take a vacation in 2020 and 16 percent said they would in 2021. Only 3 percent said that they had no desire to take a vacation.


Respondents said that they would go to less densely populated locations within a few hours drive from home during the first three months of restrictions being lifted. The study also found that 60 percent of respondents have either canceled or rescheduled a trip, down from nearly 70 percent two weeks ago.

“A large number of people have yet to cancel a future trip. Being proactive with these guests by reaching out and offering to reschedule for free would potentially reduce the risk of losing these guests altogether,” the study said. “We have also seen success from properties that call the canceled guests and offer to rebook them with added incentives and no-risk cancellation policy.”

Millennials will be more willing to travel sooner than Gen X and Boomers and are less risk-averse. They will also spend less compared to other generations, the study said. Respondents also said that discounts could persuade them to book for holidays now. Around 28 percent of Millenial travelers said that they will stay at a more affordable property. So, any type of added value which can be included in a stay will help persuade these potential guests.

“Younger people, in addition to those in lower-income brackets are going to be more price-sensitive. Providing value-added packages will increase the chance of persuading those who are in the more price-sensitive category,” the study said. “Gift cards for gas, 2 breakfasts included per stay, Starbucks gift card or free coffee from your on-site coffee shop are examples of a few low-cost items.”

The two-hour drive market is the most confident for traveling sooner rather than later, with 36 percent ready to travel within a month of restrictions being lifted, and 31 percent from 1 to 3 months. Travelers in lower-income brackets also are likely to spend less than they have in the past, with shorter stays to more affordable properties.

Another finding from the study is that more than 75 percent of all travelers would like to receive communications from hotels.

“Proactively messaging your guest database with important information on their safety provides value to them and shows empathy. Being in communication with your guest during this time increases your chances of earning bookings as recovery picks up,” it said.

Hotels should begin to market themselves now to cash in on the new business, Fuel said.

“With more than 60 percent of consumers saying that they are intending to take a vacation in 2020, keeping your property top of mind now is imperative so that people will think of you when they are ready to make travel plans,” according to the study. “Many people are feeling the financial strain this pandemic, with unemployment filings reaching astronomical levels for the last few weeks. Keeping in mind that money will be tight for people for some time, there should be a focus on adding value to your packages. Look at incorporating things like free upgrades and food and beverage credits to encourage people to stay with you and help their pennies stretch further.”

In late May a study from research firm Arrivalist found travel over Memorial Day weekend increased 48.5 percent over the prior weekend.

More for you

Gen Z Shifts Hotel Shopping: Tech, Experiences & Values

Survey: Gen Z redefines hotel shopping

Summary:

  • Younger consumers are redefining hotel discovery through platform-hopping and peer input, according to SOCi.
  • Fragmented search and discovery are reshaping how trust is built.
  • About one-third of consumers aged 18–34 report less brand loyalty than a year ago.

GEN Z IS RESHAPING hotel shopping through multiple platforms, peer input and real-time research, according to SOCi, a marketing platform for multi-location businesses. Unlike previous generations who relied on a single search engine or map app, the younger consumer moves through a series of smaller decisions - starting on TikTok, checking Reddit or Yelp and ending with a Google Maps search.

Keep ReadingShow less
Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less
Peachtree Group's Residence Inn by Marriott under construction in downtown San Antonio, topping out milestone reached, June 2025

Peachtree tops out San Antonio Residence Inn

Peachtree Hotel to Open in Summer 2026 with 117 Extended-Stay Rooms

PEACHTREE GROUP HELD a “topping out” for its Residence Inn by Marriott in downtown San Antonio, Texas, marking completion of the structural phase of the 10-story, 117-room hotel. The property, co-developed with Austin-based Merritt Development Group, is scheduled to open in summer 2026.

The extended-stay hotel will be owned by Peachtree and managed by its hospitality management division, the company said in a statement.

Keep ReadingShow less
Air India plane crash 2025
Photo by Sam PANTHAKY / AFP

Air India reducing flights after deadly crash

AIR INDIA WILL reduce international service on widebody aircraft by 15 percent through at least mid-July, according to media reports. The decision comes less than a week after the June 12 crash of an Air India airliner carrying 230 passengers and 12 crew members in Ahmedabad, India, that killed 246 but left one survivor among the passengers.

The airline said the reduced service due to the safety inspection of aircraft and ongoing geopolitical tensions in the Middle East, which have disrupted operations, resulting in 83 flight cancellations over the past six days, according to ABC News. Passengers can either reschedule their flights at no additional cost or receive a full refund.

Keep ReadingShow less
hihotels executive team honored for long-term service and loyalty in hospitality

Hihotels recognizes eight company leaders

EIGHT LEADERS OF hihotels by Hospitality International, Inc. are being recognized by the company for their combined 121 years of service. The company was established in 1982 as an alternative to other, established brands.

The honorees include Paul Vakharia, hihotels’ senior director of franchise development for the Northeast Region who has been with the company for 25 years. Chhaya Patel, franchise development coordinator, also has been with the company for 25 years.

Keep ReadingShow less