After two years of pandemic-related restrictions, the demand for travel is finally being met. As domestic and international travel levels recover and maintain balance, industry insight points to an optimistic outlook for this summer. Breaking down this return, several key trends are emerging from the landscape, including the rise of domestic travel and “workcations.”
The tourism industry as a whole is expected to benefit from these trends, and Legendary Capital is well-positioned for the upcoming market. Industry forecasting from STR, a leading provider of data benchmarking, analytics, and marketplace insights for the global hospitality industry, offers analysis. Occupancy in the U.S. hotel industry is expected to reach 67.5% in summer 2023, slightly surpassing the 65.5% of summer 2022, with ADR and RevPAR also expected to increase. This positive movement indicates healthy performance for the hospitality sector across the board, and points to a strong demand for travel.
Forecasted Tourism Trends
Increased demand for domestic travel: According to STR data, domestic travel is projected to experience a 7% rise during summer 2023 compared to the previous year.
GROWING POPULARITY OF ECO-TOURISM
Activities such as hiking, camping, and visiting national parks are growing in popularity. This trend reflects a shift towards more environmentally friendly travel choices.
AUTHENTIC EXPERIENCES
Authentic experiences and cultural tourism are also on the rise. Travelers are seeking opportunities to immerse themselves in local cultures and communities, aiming to create meaningful connections during their trips.
FOCUS ON WELLNESS
The focus on wellness and relaxation is also expected to shape summer tourism in 2023. Leisure travel remains a resilient market, and travelers are increasingly seeking opportunities to unwind and rejuvenate during their vacations. This has led to a growing demand for wellness-focused experiences, such as yoga retreats, spa treatments, and access to healthy dining options.
WORKCATIONS
The concept of workcations is gaining prominence due to the increasing prevalence of remote work. Workcations allow individuals to blend work and leisure, enabling them to explore new destinations while fulfilling their professional commitments. This trend aligns with the changing work dynamics brought about by remote work, offering individuals the flexibility to travel and work simultaneously.
As summer 2023 approaches, the tourism industry is poised for a robust and promising season of travel. The projected increases in occupancy, ADR, and RevPAR indicate a strong demand for travel experiences. Additionally, the popularity of workcations has soared, enabling individuals to combine work and leisure seamlessly, drivenby the flexibility of remote work. With an emphasis on domestic travel, a focus on wellness and relaxation, and a quest for authentic experiences, the summer of 2023 is promising.