Allianz Survey: More Travel, Less Spending By Americans In 2015
PHOTO: More Americans will travel in 2015, but will spend less than in 2014 according to an Allianz survey. (Photoo by Brian Major).
Although more Americans are confident they will vacation this summer, those who do plan to spend significantly less while on holiday, mainly due to wider utilization of “sharing economy” travel options. Those are among the findings of an Insurance Vacation Confidence Index survey released this week by travel insurance provider Allianz Global Assistance USA.
Americans will spend $85.5 billion on summer vacations in 2015, according to the survey, down 13.5 percent from $98.8 billion in 2014. The decrease comes despite a 0.5 percent increase in the number of Americans they poll identifies as “confident they will take a vacation this summer.”
The average American taking a vacation this summer will spend $1,621, down from $1,895 in 2014. More travelers (19 percent) say they will spend less than $400 on their vacation this year than in 2014, when 13 percent of travelers said they spend under $400.
Allianz officials say the results largely point to one factor: the willingness of travelers ages 18 to 34 to utilize non-traditional travel, transportation and hospitality services including Airbnb, Uber, Lyft, GetAround, and Feastly.
The six percent increase in travelers intending to spend less than $400 on their vacation since 2014 is “a big, big number,” said Dan Durazo, Allianz’ director of communications. “It’s pretty big jump. This is being driven, we feel, by millennials who have told us that they‘re very comfortable with the sharing economy,” he said. “They think the sharing economy is a good way to save money while on vacation.
“Millennials are quite familiar with these services,” said Durazo. “Sixty percent said they trust these services, which is a pretty big percentage compared to 37 percent of all other travelers. Forty-seven percent of Americans are aware of at least one these services but 58 percent of millennials are,” he said.
Nearly 40 percent of millennials said they plan to spend less than $400 on summer travel, twice the number of all other age groups combined. “You’ve got higher awareness and higher trust of sharing economy travel services by millennials,” Durazo added.
Also, while 17 percent of Americans said they’re likely to use a sharing economy service during their summer vacation, 28 percent of young adults under the age of 35 said they plan to book travel and related services with sharing economy providers.
Millennials were also found to be the most confident of any age group in taking a summer vacation, with 50.5 percent saying they expect to vacation this summer, said Durazo.
The survey did include a slim glimmer of light for traditional travel providers: all age groups agreed that established travel providers, including travel agents, OTAs, hotels and resorts, offer “better experiences and services” compared with sharing economy providers.
These Allianz survey findings are based on an Ipsos telephone poll of a nationally representative sample of 1,000 randomly selected adults conducted June 5 to 9, 2015. The results are considered accurate within plus or minus 3.1 percentage points.
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