Adobe Digital Insights (ADI) recently released its 2017 U.S. Travel Trends Report, shedding light on the current state of the travel industry and highlighting which disruptors could potentially shape its future.
ADI forecasts the travel industry's online revenue to grow this summer.
Based on 16 billion visits to major U.S. travel, airline, hotel, car rental, cruise, and online travel booking sites between March 2015 and March 2017, it projects a 5.1 percent year-over-year increase to $98.02 billion.
Experience is driving much of that spend. ADI surveyed 2,000 working consumers in the U.S. and found that 70 percent of millennials would rather spend on experience than tangible items. Nearly six out of 10 Americans age 35 and up also prefer experience over objects.
The report uncovered other trends as well:
AR, VR and Wearable Tech Are in Demand
Travelers are excited about the idea of having access to augmented reality (AR), virtual reality (VR) and wearable devices. Whether in the comfort of their hotel room, on a long-haul flight or a cruise ship, there's an obvious demand for AR, VR and other technology that can personalize or enhance travelers' experiences.
The good news is that brands are experimenting.
"There's clearly a massive opportunity for brands to take advantage of emerging technologies. Augmented reality, virtual reality and wearables are proving their value with consumer interaction," ADI Principal Analyst and Director Tamara Gaffney told TravelPulse.
"With at least eight of the largest hotels testing some kind of VR experience this year, we found that social mentions for travel and AR/VR experiences have increased 13 percent since last year, and buzz around travel-related wearables is up 44 percent since last year."
A significant amount of that buzz was generated by the upcoming launch of Princess Cruises' Ocean Medallion.
"Consumers are excited about using these types of technology to make their travel experience more seamless, personalized and perhaps entertaining," added Gaffney.
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Cruise Sites More Popular Than Ever
ADI also found that visits to cruise websites have reached a record high, achieving 98 percent growth since January 2014.
"This may be attributed to a number of factors including a draw to an all-inclusive vacation that takes away the sometimes arduous planning process," said Gaffney, who listed affordability, higher domestic hotels prices and higher airfares as other factors.
According to ADI, domestic hotel prices have increased 3.7 percent year-over-year, while prices for international flights to the U.S. have increased by 9.7 percent year-over-year.
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Online Car Rentals Dropping Off
ADI's research shows that online car rentals decreased 14 percent year-over-year in the first quarter of 2017. The dropoff can be partly attributed to the emergence of industry disruptors like Uber and Lyft.
Uber's mentions on social media reached 6 million during the same period of time online that car reservations dropped 14 percent. According to ADI, online car rentals declined by 2 percent for every 10 percent increase in Uber's social mentions.
However, there are other factors at play.
"With higher prices for flights, international travel is down, which in turn is decreasing the need for rental cars," Gaffney points out. "And as cruises and all-inclusive resorts are gaining in popularity, and Uber and Lyft become the new norm, travelers are seeing less of a need to rent a vehicle while on vacation."
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