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For U.S. travelers, Mexico remains the most sensitive foreign destination
Florida remains the top popular national destination, but interest declined particularly in the first week of July
The total volume in the United States slowed to 39% in January in mid-June, but fell back in July to 29% of the year’s starting value.
During the peak of the crisis in April, U.S. domestic searches fell to just 11% of January level, while click-outs decreased by nearly 91 percent
At the end of June, the U.S. states rose 13% compared to January
D-SSELDORF, GERMANY July 8, 2020 – As U.S. state borders begin to reopen and cities ease restrictions on the coronavirus pandemic, Americans eagerly await the option of a summer vacation. In mid-June, search for accommodation accounted for 39% of the January 2020 volume, however, this number fell to 29% in early July as COVID-19 instances began to increase. Meanwhile, the total number of clicks recovered and, since mid-May, it exceeded 2019 levels. Signs of recovery are a positive indicator after approximately 90% collapse in the volume of studies in April.
These effects come from recent studies conducted through the control consulting firm McKinsey and Company, which employ knowledge of anonymous studies of the trivago of the hotel’s comparison site. McKinsey evaluated general search requests and booking requests measured through clicks, where the user clicks on a link to a decided offer, using knowledge from January 2019 to July 5, 2020. These studies revealed that considerations of restrictions, distance and congestion play a key role in short-term and probably longer planning. The effects show that americans’ appetite is strongly correlated with the number of COVID-19 instances. As instances increase, vacation home searches decrease.
Based on this analysis, a board was developed to interpret this knowledge and identify trends in habits and critical points of good fortune for brands.
Domestic destinations remain popular The U.S. travel appetite for domestic destinations versus overseas locations was already high prior to the outbreak of the coronavirus, averaging 70% to 80% of search volume. Since June, that figure has increased to more than 90%. Additionally, more Americans are traveling within their home states. Compared to late June 2019, the share of U.S. travel within state of origin (intra-state) is 13% higher this year.
“The need for a family approach is on the rise. This trend will likely continue after the pandemic,” said Axel Hefer, CEO of trivago. “In addition to travel restrictions, regional travel provides more control at an affordable price, while providing the ability to escape. Since restrictions vary by jurisdiction, it makes sense that we see an accumulation in travel within the state.”
“Especially in the United States, it’s vital to take a look at individual progress at the state level. The market is heavily focused on the domestic matrix and we can see that the recovery behavior varies by state, mainly because demand depends heavily on the local epidemiological situation.” Understanding regional advances day by day is key to the success of industry participants,” says Nina Wittkamp, partner wife and expert at McKinsey and Company.
The five most sensitive domestic destinations for AMERICAN lers have remained largely consistent since the start of the COVID-19 crisis. Florida is the most popular place, followed by California, Texas and Nevada. South Carolina replaced New York State at the height of five. In general, significant accumulation in COVID-19 instances over the past 3 weeks has reversed the trend of resumption of searches, i.e. in the southern states. When analyzing trends in Arizona, South Carolina, Florida, and Texas, click progression is strongly correlated with COVID-19 outbreaks. After the first wave of March, the number of clicks began to accumulate. However, with significant accumulation in new instances starting in June, clicks decreased in those states, with decreases ranging from 30% to 53% compared to mid-June. Proximity is equivalent to the popularity of foreign destinations. Knowledge analysis also revealed that the popularity of a pre-pandemic destination continues to play a vital role and that Americans stand firm in their classic foreign destinies in Mexico and Canada. Knowledge of pre-pandemic studies showed that the UK was the third most popular country in terms of searches and clicks, followed by Italy, France and Spain. However, as blocking measures were implemented, the Dominican Republic replaced the United Kingdom. In the first week of July, the five most sensitive foreign click destinations are Mexico, Dominican Republic, Canada, Puerto Rico and Cuba.
The Dominican Republic, Puerto Rico and Cuba have gained particular preference. While these countries accounted for approximately 7% of all search queries between January and July 2019, they accounted for 13% of all searches between April and the first week of July 2020. Knowledge implies a preference for destinations very close to the continent. United States. Compared to last year, the total distance driven decreased by 37%, indicating a further shift to the national matrix.
Preference for longer tripsInterestingly, trips of 7-plus days took longer to be affected and were less severely impacted overall than shorter trips. However, data shows that trips of more than 14 days did not recover as quickly as shorter trips. By mid-June, planning for longer trips returned to 39% of January volume, but has since dipped to 32% of the January level. Search volume for trips up to six days decreased by 90% compared to the beginning of the year. In the first week of July 2020, searches for shorter trips (1-6 days) were back at 37% of the January level.
“Given the tendency to move faster in cars, longer journeys are more desirable for apparent reasons,” Hefer said. “We hope this will continue; longer trips where lers can spend more time living their vacation while staying closer to home.”
Changing customer expectations will drive change for the industryAccording to McKinsey consultant Wittkamp, the travel industry – including tourism associations, event organizers, hotels and tourist attractions — faces completely new challenges: “They need to ensure that demand and expectations for a destination match the realities and opportunities available. If this is not the case, measures need to be taken to ensure travelers still enjoy a good experience. Hotels, for example, need to know when capacities can be ramped up or need to be scaled down.”
Hefer adds: “Tourism agencies need to weigh the risks of opening attractions against the danger of a new COVID-19 outbreak. Questions and answers are changing daily, requiring greater flexibility.”
About Trivago Trivago is a world-leading hotel search platform aimed at redesigning the way travelers search and compare hotels and other hotels. Incorporated in 2005 in Dusseldorf, Germany, the platform allows travelers to make informed decisions by customizing their hotel search and giving them a complete diversity of hotel data and prices. Trivago enables its advertisers to grow their business by offering a broad audience of travelers through their internet sites and apps. As of March 31, 2020, trivago has established 54 localized platforms connected to more than 4.5 million hotels and hotels of choice in more than 190 countries. Media Contact: Stephanie Lowenthal [email protected]
Forward-looking statements This press release includes certain forward-looking statements. Words and diversifications of words such as “believe,” “expect,” “plan,” “continue,” “want,” “should,” and similar expressions are intended to identify our forward-looking statements. These forward-looking statements involve threats and insecurities, many of which are beyond our control, and curtain points that can also cause actual occasions and effects to differ drastically from forward-looking statements. For more information on the points that may be our forward-looking statements, please see our threat points, which may be replaced from time to time, filed in our public submissions to the Securities and Exchange Commission. We do not assume or assume any legal responsibility to update or revise any forward-looking statements in this press release, unless required by applicable laws or regulations.