While many people are downsizing their vacation budgets or delaying trips for a less expensive future, others have decided to go all out with opulent or extended vacations.
Despite inflation concerns, a World Travel & Tourism Council and Trip.com report found that 31% of travelers said they intend to spend more on international travel this year than in 2022, and a Flywire survey found that 84% of luxury travelers are preparing to take longer vacations this year than they did over the past 18 months.
Here’s why some Americans are taking more luxurious and extended vacations in 2023 — and how you may be able to enjoy a similar experience without overpaying.
Closing the Business Travel Gap
When companies were picking up the tab for flights, food and accommodations, employees were able to see the world in style. As remote work became the norm in many industries and areas, though, business travel deeply declined from 2020 though 2022.
Corporate travel has rebounded to some degree after COVID-19 but a 2023 Deloitte Insights corporate travel study shows corporate travel might remain smaller than it was pre-pandemic.
Employees who depended on company reimbursement to supplement their expensive travel experiences have been faced with a gap they are now trying to close.
“Historically, our guests have largely been business travelers but post-pandemic travel has shown a decrease in the frequency of business travel compared to 2019 levels,” Stuart Evans, director of sales and marketing at Hyatt Regency San Francisco, says.
“However, those who do travel on business frequently extend trips to add on a leisure experience, resulting in a longer stay,” he adds. Evans says that pure leisure travel is on the rise as well.
Dedicated travelers will find a way, whether or not it’s on the company’s dime. The travel app Hopper reported 80% percent of its customers will spend the same or more on travel in the upcoming year — even with budgets tightening — so, interest is definitely there.
Filling a Waiting Bucket List
Plenty of people fantasize about visiting exotic locations but have put those plans on hold for when they are free to roam. Today, people are returning to their bucket lists and are booking those vacations, even in notoriously expensive cities like San Francisco, Evans says. It’s a “now or never mindset” born from the restrictions of the pandemic era.
Brett Keller, CEO of Priceline, agrees. “Travelers aren’t waiting to take their bucket list or luxury vacations anymore,” he says. “Think heritage travel to learn about their family roots, Alaska cruises or tours of Europe. In 2023, consumers are splurging to take these trips now.
“After several years limited to domestic travel, consumers want to experience the world,” Keller says.
According to Priceline data, the most popular overseas destinations this summer are Tokyo; Manila, the Philippines; Lima, Peru; Paris; and Tel Aviv, Israel. So much for cheap staycations and van life excursions that became popular options for Americans when travel was restricted.
Escalating Airfare Is Inspiring Longer Trips
Prepare for sticker shock when booking flights: Flying is more expensive than ever. Hopper reports that 2023 airfares are nearly 20% more than last year.
[Read: 9 Best Apps for Finding Cheap Flights]
With such daunting prices, it would make financial sense to take one long vacation instead of multiple shorter trips. Extending travel days is especially compelling when destinations are far and require extra travel time.
“We believe that because airline prices are so pricey at the moment, when travelers decide to venture somewhere more off-grid they will spend the extra dollars to have a longer stay in luxury,” Ariel Barrionuevo, managing director of La Coralina Island House in Bocas del Toro, Panama, says.
“For this reason, we see travelers coming to our resort and region for up to two weeks, as it is their main trip of the year and they want to make sure the travel costs have been worth it,” he adds.
Guests are also adding days to their vacations by working from the hotel instead of rushing back. Remote work may have put a dent in business travel opportunities but has helped millions stay on the clock no matter where they are.
[Related:Remote Work Is Here to Stay. Remote Workers Need Better Internet]
How to Travel Deluxe for Less and Longer
For some, luxury means flying first or business class, while for others it’s dining out for every meal or simply doing things that feel indulgent.
In fact, Barrionuevo says they’ve been surprised by what guests are seeking post-pandemic. Rather than lavish perks, they’re valuing little luxuries.
“They look for products that offer them more comfort, wellness and well-being activities related to good gastronomy, adventure and longer stays in the hotel,” he says.
If you’re ready to plan your version of a luxury vacation but also need to economize, try these strategies:
— Book off peak season. “Don’t travel when the world travels,” Keller says. “Sure, there may be a few rainy afternoons sprinkled in here and there but luxury travelers are getting the five-star product and treatment for a lesser cost,” he adds. Always wanted to go to Rome? You’ll find the best deals November through February. If Thailand is on your list, and you don’t mind the heat, plan to go during April or May.
— Bundle up. Keller says customers who combine first-class tickets with high-end luxury properties can save hundreds of dollars on their trips by accessing package discount rates. Some of the best properties in the world in top destinations offer deals like this.
— Go for high-end. all-inclusive resorts. If you’re not keen on moving around much once you arrive at the destination, consider a five-star resort that includes dining, drinking and activities. You can keep to your budget and avoid surprise bills at the end of the trip while you receive premier service and amenities.
[READ: Surprisingly Cheap Tropical Vacations]
— Consider countries where your dollar goes furthest. Want the best of the best but also need to keep spending to a minimum? Research countries with favorable currency exchange rates or where you just get more for your money. “We notice that many Americans are seeking luxury in Argentina, especially when looking at summer 2023 bookings,” Nicolás Etcheverrito of Visit Argentina, says. He explains it has a lower price point than most European destinations but the same level of luxury. For example, a room at the Four Seasons in Buenos Aires might be $700 compared to $2,000 in Paris.
— Find out if the hotel is offering time-sensitive packages. Whether you’ll be traveling in or out of the U.S., go directly to the hotel’s website to see if there are any well-priced packages available. They can dramatically elevate your vacation without greatly increasing the cost. For example, to celebrate the Hyatt Regency San Francisco 50th anniversary, the hotel is offering a package with an upgraded room, complimentary club access, two signature cocktails at check-in and two cable car tickets. Details like these can give you the VIP experience you’re craving.
Luxury Travel: Plan Now
With a little preparation you might be able to take the trip of a lifetime before the start of 2024. Your vacation may involve most of the luxuries you’ve only hoped to try, and places that have been in your dreams. Once you’re back home you can decide which fabulous destination is next on your list, then follow these tips to make it a reality.
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Why Are Americans Taking Longer and More Luxurious Vacations in 2023? originally appeared on usnews.com
