(Bloomberg) -- The busiest travel season of the year is about to begin: Almost44 million people in the US are expected to unofficially kick off their summers by traveling onMemorial Dayweekend, a 4.1% increase over 2019, according to the American Automobile Association. “We haven’t seen Memorial Day weekend travel numbers like these in almost 20 years,” said Paula Twidale, senior vice president of AAA Travel, in a May 13 release. “We’re projecting an additional one million travelers this holiday weekend compared to 2019.”
The Transportation Security Administration alsosaid on Tuesday that it expects—for the first time—to screen more than 3 million passengers nationallyin a single day “at some point this summer.”
Revengetravel may have tapered, but sky-high demandpersists in tourism.
It’s not just in the US. Globally, touristvisitor numbers lookto finally return to pre-pandemic levels this year, according to recent research fromthe World Economic Forum.
If you’re among the millions of people hitting the road in the coming months, here’s a preview of some major industry changes that may affect your journey.
AI Will Continue to Shape YourTravels
Scarlett Johansson may not be playing the part of your Chat GPT-created travel agent this summer, but as generative AI keeps improving, so will travel planning tools that leverage the technology. Look no further thanExpedia Group Inc, which on May 14deployed anAI travel assistant app called Romie that can both craft tailored itineraries and troubleshoot unexpected travel disruptions once you’re on the road.
Invite the Romie chatbot into atext chain with your travel companions, and itcan help find ideas everyone will love; Romie willalsosuggest restaurants, activities and otherplaces to see in areas you’re visiting, as well as answer general travel questions. It’scurrently availableto test on iPhones in the US,but you mustjoin Expedia’s EG Labs program on the app in order to access it. (Find that inyour account settings.)As with any AI chatbot, it’s worth double-checking automatedsuggestions.
Expedia’s product joins an ever-growing landscape of AI travel-planning tools; earlier this year, Booking HoldingsreleasedAsk Kayakand Kayak PriceCheck to helptravelers find vacation ideas and quickly compare flightprices against 100 different websites.
And don’t forget about biometric technology, an additional form of AI being implementedat global airports to hasten checking in or dropping off luggage. The most advanced example so far is aself-service variation on TSA screenings—donewithout the presence of human agents—currently being tested at Harry Reid International Airport in Las Vegas. Later this year, passport-free travel may become a reality: Singapore is preparing to let departing travelers use biometrics in lieu of physical IDto clear border control.
Read More:Can You Use Chat GPT to Plan Travel? It’s Hilarious and Can Actually Work
Five-Figure Trips Will Soon Become the Norm
International trips are averaging more than $9,000 per person this summer, according to Florida-based Squaremouth, a travel insurance comparison engine. That’s higher than ever—a 7% increase over 2023.And as trip costs continue to climb, so does the price toinsurethem; Squaremouth research shows that travel insurance premiumshave increased 22% year-over-year, to more than $600 in 2024.
To bring travel insurance costs down, the company recommends insuring only expenses you’re likely to lose if you should cancel your trip.For instance, if the penalty to cancel a hotel reservation is 50%,insure only that amount versus the full cost of the room; this willultimately reducethe total cost of your policy.
If the rising expenses still have you down, consider this: A growing number of companies arerising up to insure not just against travel delays or cancellations but also against simple disappointment.Take Sensible Weather’sadd-on guaranteeto your reservation, ensuring you’ll get a refundif itrains on your trip when you book with specific hospitality companies. Or the newWeatherPromise,which lets you directly buy rain protectiononline for any existingtrip. Now there’s also Holland America Lines’ out-there glacierguaranteethat promises 15% of your cruise fare in credit for a future sail if you don’t get to see one onyour Alaska cruise.
Read More:How to Know If Travel Insurance Is Worth Buying
Travel Will be More Accessible
The travel industry is ramping up improvementsfor people with physical disabilities—a $58 billion market. Increasingly, it’slooking to meet the needs of drastically underserved neurodivergent travelers, too: According to the travel booking platform Autism Travel, 87% of families with autistic children find traveling so complicated thatthey forgo it. Hotels are finding ways to help.
For example, Virgin Hotels is getting more ofitssevenproperties around the world “Autism Double Checked,” an independent certification that ensures that staff members are trained to properly helpguests on the spectrum. You’ll soon see this service expand to other hotel brands; Hyatt Hotelsrecently announced a push in this direction.
On the tech side, Alphabet Inc’s Google has continued expanding accessibility features intoGoogle Maps, including wheelchair accessible place listings. Also new arescreen reading and voice guidance for blind or low-vision travelers, whichtellusers when say, they’re going the wrong way.
Accessibility is also becoming more important for airports and the aviation industry, though this summer you’re more likely to hear about what’s coming thansee actualprogress. In the US, legislation is in the works to amend the Air Carrier Access Actto guarantee better services for air travelers who use wheelchairs. The comment period on proposed amendments will closeon June 12, so expect related headlinesover the summer. Similarly, Zurich Airport is currently getting ready to roll out autonomouselectric wheelchairs, from Swiss startup DAAV,bythe end of the year.
Read More:The Five Most Exciting Innovations Coming to an Airport Near You
You’ll Book at the Last Minute
Last-minute bookings are on the rise, saidglamping hospitality company Autocamp,which attributedthe pattern to a growing share of Gen Z travelers. It’sa global trend: Some 78% of international travelers surveyed by American Express this year indicated a preference forlast-minute tripsand leaving room in trip itineraries for unplanned experiences.
Flexibility isn’t the only pandemic-era trend that’s back and staying strong. The desire to vacation in nature and visitnational and state parksis driving outdoor hospitality companies to tap in:Think upscale lakeside treehouses, tents, cabins and domes in locations ranging from New York’s Catskill Mountainsto Wyoming’s plains and Colorado’s ranges, with limited inventoriesheightening demand.
It seems as if every week a new property announces anopening; right after our preview of new glamping lodges was published, we caught wind of this stunning new propertythats bringingbubble domes to Bryce Canyon National Park in Utah.
Read More:Seven Exciting Glamping Lodges That Are Opening in the US This Year
Road trips in the US—another pandemic era favorite that allowed for more flexible summer travel in one’s backyard—are predicted to hit a record over Memorial Day weekend, according to AAA. Some38.4 million people are expected to travel by car,1.9% morethan in 2019.
All-Inclusive Resorts Will Push Further IntoLuxury
Marriott Hotels International Inc, Hilton Hotels Holdings Corp.andHyatt Hotels International Inc.have been betting large on the all-in-one vacation model, with new openings in such hotspots as Mexico’sRiviera Maya and the Dominican Republic’s Punta Cana. At these places, the standards associated with all-inclusive resorts are trending strongly upward. Expect more than lavish suites and miles of white sand beaches. Think of amenities that range from a 10,000-square-footspa and farm-to-table chef menus to rooftop bars with panoramic sea views.
Two all-inclusive resortswe’re excited about on the horizon: Set to open in August isAlmare on Isla Mujeres in Mexico, making it the first location of Marriott’s Luxury Collection brand to go all-inclusive. The distinction here is less about endless inclusions and more about not having to worry about what you’re spending at an intimate, highly luxurious resort—it’s got just 109 rooms, and they’re all suites. Guests will be able to tuck intotheir beach reads on daybeds that float along the edges of a palapa-shaded pool; just beyond the white-sand beach is one of the largest coral reefs in Mexico.
Andthen there’s the 30-roomSCP Corcovado Wilderness Lodge, just opened in Costa Rica’s Osa Peninsula and accessible only by boat. Its luxurious bungalows dot forested trails, with secluded terraces and outdoor tubs that lookout over the ocean and adjacent Corcovado National Park.
Read More: An All-Inclusive Resort for $2,000 per Night? People Are Paying It
Hotels Won’t Get Any More Affordable
Hotel priceswere forecast to risein most major citiesthis year, according to American Express Global Business Travel’s Hotel Monitor 2024 Report. At the start of the year it predicted rates would jump by 10-17% year over year in the most affected markets. That seems to be an accurate assessment.
We’re not just talking about the luxury sector, wherethe $1,000 entry-level room has become the norm. When looking more broadly at hotels—meaning everything from budget motels to five-star stays, globally—Hopper says Memorial Day weekend prices have hit an average of$212 per night,a 30% increase over rates during the same period in 2022.
In the most-searched cities, you’dbe lucky to be able to book for $212. In both London and San Juan, Puerto Rico, Hopper says theaverage rate is right around $370, which represents an increase of 6%-10% year-over-year. Andas Airbnbcontinues getting pushed out of major cities like New York and Amsterdam, the price pressure onsuch rooms will only continue to grow.
©2024 Bloomberg L.P.
