U.S. Travel Demand Holds Strong Despite Inflation, According to OAG Survey

Jul 7, 2022 2:15:00 PM / by OAG

Nearly 30% more consumers are traveling this summer than in 2021; Business travel makes a comeback with 89% of respondents saying they had already traveled for business this year

CHICAGO - July 7, 2022 - The U.S. travel market is holding strong for now despite skyrocketing costs, flight cancellations and growing recession concerns, according to OAG’s latest survey. The report, conducted via OAG’s flight tracking app, Flightview in April and May of 2022, offers timely insights on over 1,400 North American travelers who are eager to fly again following two years of COVID lockdowns, protocols and restrictions.

Twenty-seven percent more people are traveling this summer compared to 2021. Of those traveling, 63% are booking international flights, and nearly 60% are planning to visit a destination they haven’t visited before. Over 50% are booking 2-6 months in advance and 11% are booking with lead times of 6 months or more.

Despite rising inflation, respondents said $50 and $100 ticket price increases aren’t likely to discourage them from booking, but they are extremely less likely to book with $200 and $300+ increases (45% and 68% respectively). And once at the airport, flight delays, cancellations and customer service issues rank among the biggest areas of impact for consumers (52% and 19% respectively).

U.S. business travel is also surging. Eighty-nine percent of respondents said they have already traveled for business in 2022, up 51% from 2021. Ninety percent report that their company plans to travel in the next 12 months, while 50% say their travel plans will return to pre-pandemic levels or above in the next year.

“After lockdowns and restrictions, travelers just want to take their long-awaited holiday, even if it means higher fares, crowded airports and service inconveniences due to shortage of staff. While inflation and concerns of a recession might impact the recovery in the second half of the year, market demand and scheduled capacity for the next three months is at its strongest since 2019.”
John Grant, Chief Analyst at OAG

Other quick takeaways from OAG’s research include:

  • Better Data for Booking Options: The top improvements respondents want from online travel agencies (OTAs) and travel apps include better price predictability on when to book (59%) and real-time travel updates (53%).
  • Biometric Data: Fifty-nine percent of respondents are willing to share their biometric data (via facial recognition, fingerprint, retina scanning or otherwise) to get through security lines faster, including 56% who are willing to use biometrics to streamline customs and immigration.
  • Sustainability: Sixty-two percent of travelers said sustainability does not impact their travel decision-making. Nearly half of travelers admitted that they wouldn’t be willing to pay extra for a more sustainable flight.
  • Self-connecting Flights: Although the majority (69%) said they have not booked a self-connecting flight within the last 6 months, 50% said they want OTAs and apps to offer more non-traditional connecting flight options at better prices.

For the full survey insights, view the report now. To learn more about OAG, visit https:/www.oag.com/.

Contact Information: 

Chrissy Azevedo
Corporate Ink for OAG
pressoffice@oag.com

Topics: COVID-19 Recovery

OAG

Written by OAG