During the Black Friday and Cyber Monday week, travel specials tend to get lost in the flurry of deals on smart speakers, tablets, and HD TVs. Over the past few years, the travel industry has quietly stolen a share of consumers’ spending between Black Friday, Cyber Monday, and what the industry is now calling “Travel Tuesday.” Cyber Monday and Travel Tuesday 2018 will likely be one of the biggest travel booking periods . . . of all time. Here’s why:
Black Friday and Cyber Monday travel offers are proliferating. In 2017, travel website Hopper sent more deal notifications on the Tuesday following Thanksgiving than Black Friday and Cyber Monday combined. The company analyzed its historical flight pricing data and found that the Tuesday following Thanksgiving has consistently offered the most significant volume of fare sales that week. This year, Hopper is forecasting deals to destinations such as London (41% off), Paris (32% off), Barcelona (36% off), Hong Kong (32% off), and Turks and Caicos (42% off).
Millennials and Gen Zers prefer experiences over products. In our “The State Of The US Retail Shopper In 2018” report, we found that spending on recreation, travel, and eating out is up as a percentage of total income, while spending on many durable goods and staples such as clothing is down. In 2017, Expedia ran a study that showed that 94% of teens would rather receive a trip as a gift over a new toy or game. Expedia has continued to see increased consumer engagement with its Cyber Monday deals since it started running them in 2015.
Consumer confidence is driving demand for travel and tourism. Low fuel prices, healthy airline competition, strong consumer confidence, and increasing wages are all leading to increased travel demand. Travel to and within the US grew 3.8% year over year in August, according to the U.S. Travel Association’s latest Travel Trends Index — marking the industry’s 104th straight month of overall expansion.