To get your full statistics fix, with data from STR, AirDNA, and the Charles M. Schulz Sonoma County Airport, check out the Monthly Tourism Destination Data Dashboard at sonomacounty.com/statistics.
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Today's Takeaways
From SCT's senior research manager, Conrad Braganza
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Although travel remains a priority for many globetrotters, planning for a potential economic contraction is worth preparing for. The travel and tourism sector is expected to remain resilient during the downturn, but we must prepare for and develop ways to navigate the economic tightening this year. The rising costs of goods and services is undeniably impacting our sector, both in the leisure and business segments. According to the latest findings by Longwoods International, about half of American travelers say their personal financial situation will impact their travel decisions in the next six months. While travel intent remains strong, there are a few strategies that can provide a strong tailwind leading to a more robust recovery this year:
- Develop strategic campaigns that convey the many benefits of travel. Studies have found that travel reduces stress and increases physical and mental well-being and quality of life. Designing campaigns with a focus on prioritizing health, connection with family, and marketing to the weddings industry and luxury travelers are still important niches even during tough economic times.
- Prioritize customers and keep them at the forefront. Despite staffing impacts, it’s easy to prioritize operational needs over customer needs. Simple personalization tactics can nurture a positive customer relationship at your business.
- Enhance your value. To provide added flexibility, customers are more likely to choose your business if you offer extended customer support, hassle-free refunds, or even re-evaluate extra fees that are otherwise part of the base price.
- Diversify offerings. Since domestic travelers are likely to take a vacation closer to home, consider creating packages that combine multiple services, offer flexible payment options, or add budget-friendly and luxury offerings as part of the mix.
- Create emotional connection. Part of developing loyalty is also rooted in establishing an emotional touchpoint with travelers. Personalized experiences build trust and sustain long term relationships between travelers and the brands they most connect with.
Here are a few trends that are likely to define the 2023 travel year:
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American leisure travelers plan to spend approximately $3,991 over the next 12 months. While the travel industry continues to recover to pre-pandemic levels, and leisure travel will remain resilient, 45% of travelers say travel is too expensive now. 40% report that their financial situation kept them from traveling, and 62% of American travelers are currently being more careful with their money because they are concerned about an upcoming recession. Travelers are most excited about more authentic, less commercial travel experiences; taking a dream trip to somewhere exciting; and TikTok will rise to become America’s most popular social media channel, and an important tool for travel planning.
International travel is expected to return full force in 2023 led by business and leisure travelers to and from China. The re-opening of China is welcome news to Chinese exhibitors and attendees, and Chinese citizens will also soon travel overseas. U.S. overseas arrivals stubbornly remain 30% below 2019 levels—a trend that is likely to be remedied with the re-opening of several Asian markets. Americans are also more interested in traveling internationally this year. United plans to add 10% more capacity and Delta plans to add 8% capacity to Europe this year. The strength of the dollar continues to drive international outbound travel from the U.S. despite inflation, high fuel prices and increased fares and travel costs.
The final homestretch to a full meetings industry recovery will be achieved through cost leveling, the return to business travel and budget increases. Attendee size is no longer a major challenge. More than 70% of 2022 events had attendance at, or above, 80% of 2019 levels. Fluctuations in the industry service levels and rising costs of up to 50 percent are causing organizers to re-define event strategies and goals, including profitability. Using technology to enhance attendee experience and a focus on equity, diversity, and inclusion and creating a more casual meeting atmosphere are top of mind for planners.
While economists believe a brighter year is on the horizon, cross currents continue to rock the economic boat. Although inflation is still noticeable, it is a receding problem, and the longer-term U.S. economic outlook has improved. While leading indicators point to a global recession, the depth of this downturn appears to be mild, so far. There remains strength in services (travel and leisure), although demand and manufacture of goods has been weakening (rising inventories and slower product sales). The recession will likely roll through different parts of the economy at different times, in contrast to the more systemic recessions of 2020 and 2008-09.
The value of travel continues to be shaped by consumers seeking a change of scenery, enjoying physical and mental health benefits, making up for lost time with friends and family, having new experiences and getting out of the comfort zone. As sustainability continues to rise in priority for the industry, travelers are looking for recommendations for locally owned businesses/restaurants; transportation options with lower environmental impact; information on how to engage with local cultures and communities; environmentally conscious lodging and recommendations for destinations that support indigenous heritage.
Cost-effective but fun experiences are likely to emerge in 2023. Developing a financially savvy itinerary will be paramount this year, with a focus on value, while still being immersed in local culture and experiences that they can talk about for the rest of their lives. Most travelers also believe that a better use of their budgets is opting for one or two long holidays rather than having several short ones. Combining business and leisure travel (bleisure) is also top of the 2023 travel trend, with remote workers who are flexibly open to finding places that are great for team building and attending meetings while also taking in fun and relaxation.
Solo travelers are likely to rank higher as more responsible travelers because they tend to prepare ahead (creating packing lists and checklists) and since they’ll spend a significant amount of time on their own, they’re more likely to focus on minding their mental health. Whether it involves journaling every morning or planning to visit only one or two sights per day, they embrace a more unstructured schedule. To get social, solo travelers are likely to explore many app options or sign-up for a walking tour to meet some friendly faces.
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STR Tracking for Sonoma County
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Things to Note:
- STR is comparing “Weekly Year Over Year.”
- Full County participation is approximately 53% of hotel properties and 78% of rooms
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Total hotel supply rooms in Sonoma County in December 2022: 7,699 rooms.
- The average from other destinations includes Napa, Palm Springs, Monterey, South Lake Tahoe, Vallejo/Napa Valley, and San Luis Obispo.
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STR is the recognized leader in hospitality industry benchmarking around the globe. Powered by the world's largest hotel data sample, they deliver confidential data, accurate and actionable insights, and comprehensive solutions to empower decisions. Discover how STR collects data, how it is calculated, and a glossary of terms, by clicking here.
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Occupancy Data for Hotels & Short Term Lodgings
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*Please note the charts below contain different date ranges. |
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Air Travel Year over Year
At Charles M. Schulz Sonoma County Airport
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Recent Travel by Month
At Charles M. Schulz Sonoma County Airport
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