U.S. Domestic Travel And Road Trips On The Rise
MMGY Global identifies four roadtripper personas and why they’re hitting the road
According to MMGY Global's 2017 Portrait of American Travelers®, domestic vacations now make up 85 percent of total American vacations; and during the past 12 months, 13.9 million more vacations were taken within the U.S. compared to internationally. The rising preference for domestic destinations has also resulted in the increasing popularity of road trips.
Accounting for 46 percent of American travelers, roadtrippers – defined in this study as American travelers with annual household incomes of at least $50,000 who took at least one road trip during the past 12 months – are now a large segment of the American traveler market. These estimated 27.8 million traveling households went on a combined 99.7 million vacations and spent $215.1 billion on leisure travel during the past 12 months. Significantly, 55.6 million of the 99.7 million combined vacations taken by this segment were road trips (56 percent).
From 2016 to 2017, road trip vacations taken by Americans rose from 22 percent to an impressive 39 percent. In terms of economic impact, consumer expenditures on road trip travel increased from $66.6 billion in 2015 to $113.7 billion in 2016. Boomers are leading the growth of road trips with 42 percent of vacations taken as road trips compared to Millennial road trip vacations which only constitute 36 percent.
The primary motivations are mostly convenience and flexibility rather than lower overall vacation costs, and excitement and surprise play a big role in selecting a road trip over other vacation types. The growth of road trips goes well beyond an attachment to the past with only 18 percent of road trippers citing nostalgia as a reason travelers choose this vacation style.
"Vacations focused on a single destination or activity aren't as appealing to roadtrippers," said Steve Cohen, vice president of insights at MMGY Global. "One of the reasons road trips are so appealing to these travelers is their ability to make multiple stops to experience a wider variety of vacation activities and attractions, especially ones that are uniquely local. Destinations that effectively communicate their authentic, unique offerings will go a long way toward attracting more roadtrippers."
With almost half of American vacationers as roadtrippers, the study also recognizes that it is too difficult and expensive to market to these travelers as one large monolithic group. Microsegmentation is essential for any travel marketer to attract the most relevant and profitable slice of this market for their businesses. MMGY Global analyzed roadtrippers and developed the following roadtripper microsegments:
- The Griswolds – Distinctive, younger, and less affluent microsegment of travelers. With an average age of 37, they are the second youngest among the road tripper microsegments – 57 percent are Millennials and 43 percent are Xers. The have discretionary income and want to invest it in life experiences rather than belongings.
- Well-to-Gos – With an average age of 42 and average annual household income of $217,000, Well-to-Gos are the highest earning group among the road tripper microsegments.
- Retired-on-Tires – Made up of Boomer or Mature road trippers who are married or living together, retired, and don't have children 17 or under living at home.
- Freewheelers – The youngest of the road tripper microsegments with an average age of 36, these are Millennials and Xers without children that find hiking, biking, and other outdoor adventures desirable on vacation.
For more information about these insights, or to subscribe to the 2017 Portrait white papers, visit www.mmgyglobal.com.
About the 2017 Portrait of American Travelers®
Now in its 27th year, MMGY Global's Portrait of American Travelers® survey provides an in-depth examination of the impact of the current economic environment, prevailing social values, and emerging travel habits, preferences, and intentions of Americans. It is widely regarded as a leading barometer of travel trends and an essential tool for both the development and evolution of brand and marketing strategy. The nationally representative survey of 2,902 U.S. adults, who have taken at least one overnight trip of 75 miles or more from home during the previous 12 months, includes 2,013 households with an annual income between $50,000 and $124,999; 725 households with an annual income between $125,000 and $249,999; and 164 households with an annual income of more than $250,000. Data was collected in February 2017.
About MMGY Global
MMGY Global is the world's leading integrated marketing firm specializing in the travel, hospitality and entertainment industries. With operating brands across the world, the award-winning organization maintains a global communications practice in all marketing channels, serving many of the world's premier travel and tourism brands. As a company dedicated to the travel industry, MMGY Global strives to create a connected, inclusive and peaceful world by promoting travel as a cultural bridge of understanding. For more information, visit mmgyglobal.com.
Senior account director - NJF, an MMGY Global Company