The recent decline in gas prices is a positive indicator for travel for the rest of the summer and into the fall, according to the latest Longwoods International tracking study of American travellers.
While 31% of travellers said gas prices would greatly impact their decision to travel in the next six months, that is down dramatically from the 43% of travellers who expressed the same sentiment just a month ago.
“Falling gas prices is an automatic plus for the travel industry,” said Amir Eylon, President and CEO of Longwoods International. “And if fuel costs continue to decline as expected, more Americans will have more money in their pockets and will be hitting the road.”
The tracking study also reported that 9 in 10 travellers have trips planned in the next six months.
Despite staffing challenges, 8 in 10 travellers reported the level of service they received from tourism and hospitality businesses was equal to or higher than pre-COVID-19 levels.
Combined with an Expedia Group study this week that said American searches for Canadian travel were up 20%, the gas price news is encouraging for Canadian tourism operators who want to attract visitors from the U.S.
Other key Longwoods findings:
– The mid-summer decline in gas prices is having a significant and positive impact on sentiment as now only 31% of American travellers say that the higher gas prices will greatly impact their decision to travel in the next six months – down 12 points in just one month.
– Longwoods said it is also seeing significant declines in those indicating that they will stay closer to home, take fewer trips, and reallocate/reduce their spend in key categories such as retail, dining, lodging, recreation, etc …
– Longwoods reports a slight dip in pent up demand as 88% indicate plans to travel in the next six months — down four points from July — but still very high.
– A strong end to summer travel ahead as 49% indicate plans to travel in the next 60 days.
– 19% of respondents said COVID is greatly impacting travel plans, which is about the same as it’s been for the past few months. Forty three per cent say COVID-19 has had no influence on their travel plans at this point, a number that also has held steady.
