International Travel is Back on Track . . . and Surging

International trips by U.S. travelers surged a surprising 9.8% during the first 11 months of 2014, marking a full recovery in that critical segment since the economic recession, according to Resonance Consultancy’ s 2015 Resonance Report Portrait of the U.S. International Leisure Traveler.

That growth—and the demographic forces behind it—are directly relevant to travel agents, according to Chris Fair, president of Resonance Consultancy, which works with travel and tourism companies and organizations. (See sidebar).

The government will soon release full-year numbers for 2014, that will show an all-time record for international trips of some 65 million, according to Fair.

The economic recovery is partly responsible for the surge but also, “We are returning to a trend line established previously,” said Fair. “International travel was growing until 2007 when it reached 64 million, but then dropped for several years until it hit a low of under 60 million in 2011.“

Changing demographics
Resonance conducted a study of affluent travelers since 2008 and this year, it surveyed 3,500 of them about their intentions regarding international travel.

Among the findings: 30% of international travelers are millennials (ages 18 to 34).

“The younger generation is much more global; as interested in traveling to Asia as anywhere else,” said Fair. “We asked by generation what people value most over 30 different types of goods and services. For international travelers, exotic travel was number two after owning a smartphone.

“More than half of millennials rated exotic vacations as extremely or very desirable versus only about a third owning an expensive car,” Fair added.

“In fact, the preference for exotic travel over goods is true across all demographics but more dramatic among millennials.”

Where they want to go
According to the survey, the top ten countries Americans plan to visit in the next 12 to 24 months are Canada (29%), Mexico (28%), Italy (27%), England (24%), France (23%), Germany (19%), Spain (15%), Ireland (15%), Bahamas (13%), and Greece (13%).

Europe is the most popular region with 57% of respondents indicating an interest in visiting one or more countries there in the next 12 to 24 months. By age, millennials are the most likely to name Europe as a desired destination (61%) compared to 56% of middle agers (35 to 64), and 54% of seniors (65 and over).

The Caribbean also ranked highly as a region, with 46% identifying it as a destination they plan to visit in the next 12 to24 months. The region appealed more to millennials and middle-aged travelers than to seniors.

Where they want to stay
Despite demographics changes, some things are holding to more traditional patterns, including choice of hotels.  

While 31% of international travelers use sharing services like Airbnb occasionally or regularly – again much higher for millennials – most international travelers still prefer traditional hotels. In fact, only 11% of travelers said sharing is their preferred choice while 55% prefer a full service hotel.

“That tells us that the sharing economy is not about sharing; it’s about being able to travel at all,” Fair said. “Sharing services provide a different price point that makes travel more accessible.”

The top two lodging choices for international travelers were Marriott and Hilton followed by Sheraton and Westin. Sheraton skewed higher for seniors while W Hotels skewed toward millennials.

What they want to do    
Dining and sightseeing remain the two most popular activities for international travelers but the third most popular is now learning new things.

“Learning new things is higher with millennials and the more affluent who are looking for transformational experiences,” Fair said. “It’s not just what they saw; it’s an opportunity to learn something new. We have seen a shift from conspicuous consumption to conspicuous leisure.

“We now articulate who we are through experiences and the trips we take rather than goods we might have at home.”

The millennial factor
Although millennials account for only 22% of total U.S. leisure travelers, both domestic and international, based on Resonance research, they comprise 30% of international travelers.

Having grown up in an interconnected world with global friends, tastes and interests, they are passionate about travel and take more vacations a year than any other age groups, according to the study.

However, their trips are shorter in duration. Seniors, meanwhile, take fewer international trips, but the trips they do take are longer in duration.

And despite all the talk about millennials preferring to spend time in hotel lobbies and bars, they are interested in all the activities enjoyed by their older counterparts.

What’s on their minds
There was consistent agreement by age on the three top criteria for international travel.

Safety is by far the top consideration of travelers when deciding on a destination with 56% across all age groups and net worth considering it equally significant.

Second on the list was favorable climate. Scenery and nature ranked third in importance.