54% of vaccinated adults planning a summer vacation: Study

Melanie Lieberman, Senior Travel Editor at The Points Guy, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss travel trends for this summer.

Video transcript

- For a lot of people, it's been more than a year since their last vacation. But with vaccines now available to all adults, and the promise from President Biden that all Americans will be able to safely celebrate the 4th of July, it's gearing up to be a pretty big year for summer travel. Here to talk about it now is Melanie Lieberman. She is senior travel editor at "The Points Guy". So Melanie, what are we talking about here? Are people looking to fly more? Are they looking to take more road trips? Where are you seeing most of the interest?

MELANIE LIBERMAN: Yeah, there's going to continue to be a really big push for road trips this summer. We're hearing from travelers that they're still thinking about national and state park getaways, beach trips. Anything where they can stay outside. You know of course, this is pretty standard for summer travel. You know, people want to stay outside and enjoy the nice weather but there's definitely a continuation of some of the trends we've seen throughout the pandemic, a preference for those outdoor getaways and wide open spaces.

- So Melanie, as folks are essentially sitting on a greater amount of money and they've been holding on to those points and those miles for over a year now, I know that your survey is finding that folks are willing to perhaps spend a little bit more or be a little bit more extravagant when it comes to their vacations. Where are they looking to spend that kind of money? Are they going on farther flung destinations? Are they going international? Or are they going to try to do a luxury domestic trip?

MELANIE LIBERMAN: That's a great question. So yeah, we did find that over 40% of people are thinking of spending upwards of $1,000 on their summer vacation. And we can make a few inferences here. We've long suspected that when people hit the road again, they would opt for longer trips. It is still a slightly more complicated travel experience than it was before the pandemic. So when people do travel, they're often looking to stay longer and spend more to have that experience.

We also know that some people are going to spend more to upgrade, and there's going to be definitely, a sense of pent up demand for people who haven't traveled since the onset of the pandemic. They want to splash out. They want a big experience. But a lot of people have actually expressed using that money to have a safer experience. So people might be upgrading to first class, they might be booking a private villa or vacation rental, things that can give them more peace of mind and help them really enjoy that first trip.

- But you know, speaking of spending, I understand from some of your surveys that money continues to be one of the biggest issues or challenges for people looking to plan a vacation. How much is that factoring into things?

MELANIE LIBERMAN: Absolutely and that's the other side of this coin. So for people who said they are not going to take a summer vacation, the vast majority said affordability was the factor. And that's a shift that we're seeing for the first time in a while, back towards money being a driving factor. So throughout the pandemic, we've seen people really prioritizing their health and safety, and that's not to say that that isn't still very important. We know that people are still looking for destinations and travel providers that are enforcing mask mandates, having enhanced safety and cleaning procedures.

But we also know that affordability is really a driving factor. And of course, this has been such a difficult economic experience for so many people. A lot of people have lost their jobs. So we know that as travelers think about getting back into travel, they're looking for deals, they're trying to find a way to make this a more affordable experience.

- So to that point then Melanie, are we seeing anything on the airline or perhaps hotel side of things where they're trying to make it a little bit easier for folks to take those longer vacations or fancier vacations when they do decide to travel? Are we seeing or are you guys seeing a lot of deals perhaps and cheaper plane tickets, for example?

MELANIE LIBERMAN: So the deals are out there but travelers need to be more flexible than ever if they want to book a deal. What we're seeing is so much demand for the same kinds of trips. If you are among those people who are dreaming of a road trip this summer, you are not alone and there's a lot of demand for rental cars. In addition to the demand, there's also reduced capacity. A lot of rental car fleets were slashed during the pandemic. So for people who want a road trip, you're competing for cars that are quite limited in number now. So to get those deals, you're going to have to be really flexible and you might need to think outside the box a little bit.

We're seeing a lot of deals to city vacations, a city hotel might be more affordable than a resort on a beach or near a national park. So we're really encouraging travelers to be flexible with their dates, and the length of their stay, and to also look for value added incentives. Because sometimes the actual rate might not seem as low or as affordable as you were hoping but maybe there's going to be a property credit or some other incentive to improve the value of that vacation.

- What about long-term rentals? Are people looking at an Airbnb? We actually had the CEO of Vacasa on recently, talking about how they continue to see record demand. And that lots of folks seem to be choosing that route versus a regular traditional hotel and, that might have to do with some of the hygiene and safety protocols. But what are you seeing at "The Points Guy"?

MELANIE LIBERMAN: Definitely. There's still a preference for those long-term stays. And of course, booking a vacation rental can give you a little bit more flexibility. But above all, what we're hearing from travelers is that they want to still take things into their own hands. I think that's really clearly indicated by the preference for road trips, the strong preference for vacation rentals. And we're also seeing-- there are a lot of factors that play into this but we're seeing people come together for the first time in a long time after they've been vaccinated. And so a vacation rental can make it easier to gather safely as a family and be in control of your own space. So it definitely seems like there's going to be a continued interest in the flexibility and the space that a vacation rental can make possible, when it might be a little bit more difficult to pull that off at the hotel.

- So Melanie, where are the hotspots right now? I am planning a trip and I know it's to Hawaii. So it's one of the-- I know that is one of the hotspots. I know I've been competing with a lot of folks for those car rentals and those hotels. But for folks that are out there that are thinking about planning a vacation right now and are saying to themselves, I don't want to have to deal with that really high demand, what are the places they should avoid right now? Where is the most popular for some of these travelers and vacationers right now?

MELANIE LIBERMAN: Yeah, so like you said you're not alone. A lot of people are headed to Hawaii. We're continuing to see a lot of interest in national parks, including in the off-season. So it used to be a much safer bet to go to a national park in the shoulder season or off-season. And even as we're gearing up into summer travel, things are already getting really busy. If you haven't booked your accommodations yet near a national or state park, it might be difficult to find something already.

So for people who are thinking about hotspots to avoid, Florida beaches continue to be really popular. And because international travel is still quite difficult and the options are quite limited for Americans at this time, the Caribbean continues to be in high demand. Mexico, the beach destinations in Mexico are also very popular right now. So those are things people should keep in mind if they would like to avoid the crowds, and again, perhaps find a deal or at least more rental car availability by flying or driving elsewhere.

- They all sound great to me. Flying, driving, I'll take it. Melanie Lieberman at "The Points Guy", thanks so.