Eight in 10 Consumers Choose Travel as Their Top Budget Priority

New market research commissioned by travel subscription company eDreams revealed that the majority of consumers (84 percent) are prioritizing travel within their household budgets in 2024. Only 5 percent of U.S. respondents said they didn’t think it was important to budget for travel.

The data also revealed how travelers’ priorities and values are likely to change over the next 25 years, in line with generational shifts such as the rapid development of new technologies. For example, the survey revealed that younger people are far more likely than older generations to make decisions about how and where they travel based on digital connectivity or social inclusiveness, shedding insight into what will matter most to travelers in the decades to come.

Health and safety are a top priority for U.S. travelers. Half of respondents across all age brackets in the U.S. said this was a key consideration. Notably, this was even more pronounced with the older age group (over 55 years old), which ranked safety considerations (63 percent) almost on par with the cost of travel (69 percent).

Cost-effectiveness also remains a key concern for travelers across all age groups, with an average of 42 percent prioritizing it in the U.S. Notably, Baby Boomers exhibit a greater inclination towards prioritizing cost in trip planning, with 64 percent focusing on this aspect. In contrast, responses from younger generations indicate a decreased emphasis on cost as other considerations take precedence in line with changing generational priorities. Specifically, 32 percent of those under 34 years old in the U.S. prioritize cost as a key factor in their travel decisions.

Worldwide, 27 percent of respondents aged 18 to 24 highlighted brands and destinations that offer socially inclusive experiences as a top consideration when planning their trips compared to only 17 percent of travelers over 65. In the U.S., 29 percent of Baby Boomers prioritize social inclusivity and values when considering their travel choices, while this rises to 44 percent in the case of Millennials and Gen Z.

Similarly, 35 percent of Gen Z travelers highlighted the importance of digital connectivity for communication and work while traveling as a top priority, compared with 7 percent of those over 65. This suggests an increased prevalence of flexible and remote work among the younger generations, as well as the importance of sharing their travel experience on social networks.

The research from eDreams ODIGEO and OnePoll indicates that the global travel sector is likely to witness significant shifts over the next few decades, particularly regarding consumer preferences. That said, this anticipated period of change follows directly on from a quarter of a century which has seen the travel industry “evolve beyond all recognition,” according to eDreams ODIGEO.

Over the last 25 years, the travel industry has witnessed significant and continued growth. According to the International Civil Aviation Organization (ICAO), 1.56 billion passengers flew on airplanes worldwide in 1999. This number increased to 4.9 billion in 2023, representing a growth of 157 percent.

The biggest game-changer for the global travel industry in the 21st century has been the rapid evolution of technology. According to a report by IATA, only 5 percent of travel bookings were made online in 1999; in 2023, this figure increased to 70 percent, representing an increase of 650 percent in 25 years. Similarly, in 1999 the share of mobile bookings for travel was virtually zero. Mobile internet was still in its early stages of development, and few people had access to it. In 2023, this figure increased to 75 percent.

The latest revolution in the travel industry is the emergence of subscription-based travel retailing. Millions of travelers have shifted from a traditional transactional approach to embracing a subscription-based model for their travels.

That is all to say, travel is constantly changing. The above findings are intended to provide insight as to what the next 25 years could look like.

Source: eDreams ODIGEO

Related Stories

“Revenge Travel” Gives Way to Reprioritization of Travel

World Travel Holdings Details Multimillion-Dollar Tech Upgrades

Travel Agency Air Sales for 2023 Fall Just Short of 2019 Record

WeTravel Expands Platform Capacity With Multi-Product Launch