56% Drop in Travel Spending

The average American household spent 56 percent less on travel in 2020 than it did in 2019, according to a Bureau of Labor Statistics' analysis of the Consumer Expenditure Survey. The average household spent $2,100 on travel in 2019 and just $926 in 2020. The decline in travel spending in the first year of the coronavirus pandemic is no surprise, of course. Some may wonder why the decline was not even greater. 

Average household spending on travel in 2020 (and 2019)

Total travel spending: $926 ($2,100)

Transportation: $300 ($849)

Lodging: $318 ($619)

Food on trips: $208 ($423)

Entertainment on trips: $64 ($139)

Alcohol on trips: $35 ($70)

Of the two major components of travel spending—transportation and lodging—transportation experienced the bigger decline—a 65 percent drop for the category as a whole and even bigger declines for individual modes of transportation. Average household spending on airline fares fell 69 percent, spending on intercity train fares was down 74 percent, intercity bus fares 85 percent, and local transportation on trips 66 percent. Spending on gasoline on out-of-town trips fell by a smaller 43 percent.

Average household spending on lodging fell 49 percent between 2019 and 2020—less than the 65 percent decline in transportation spending. Consequently, the average household devoted more travel dollars to lodging than it did to transportation in 2020, a break from past patterns.

Source: Bureau of Labor Statistics, Consumer Expenditures on Travel Declined Sharply from 2019 to 2020

How Many Countries Have You Visited?

The 71 percent majority of Americans aged 18 or older have ever visited a foreign country, according to a Pew Research Center survey. Only 40 percent have visited 3 or more countries, however, and just 11 percent have visited 10 or more...

Percent distribution of American adults by number of countries ever visited

None: 27%

One: 19%

Two: 12%

3-4: 15%

5-9: 14%

10+: 11%

Source: Pew Research Center, Most Americans Have Traveled Abroad, although Differences among Demographic Groups Are Large 

144 Million Americans Cancelled Trips in 2020

Have you cancelled your traditional Thanksgiving travel plans because of coronavirus? If so, you belong to the supermajority of Americans who have scuttled 2020 travel plans during the pandemic. 

Because of coronavirus, fully 144 million Americans aged 18 or older report that they cancelled one or more planned overnight trips to a place 100 or more miles from their home. That's 66 percent of the adult population, according to the Census Bureau's Household Pulse Survey. Just 7 percent of those who had planned an overnight trip went ahead with the trip despite the pandemic. The remaining 27 percent of adults had not planned on taking any trips in 2020. 

There is little difference by age in the percentage of people who had to cancel a 2020 trip. There are big differences by household income, however. Take a look...

Percent who cancelled any planned overnight trips in 2020 because of the pandemic

Less than $25,000:         45%

$25,000 to $34,999:       55%

$35,000 to $49,999:       66%

$50,000 to $74,999:       68%

$75,000 to $99,999:       74%

$100,000 to $149,999:   78%

$150,000 to $199,999:   82%

$200,000 or more:          86%

Why the big difference by household income in the percentage of people who cancelled trips? Because those with lower incomes were much less likely to have planned on taking any trips in 2020. Only 45 percent of Americans in households with incomes below $25,000 cancelled any overnight trips in 2020 because an even larger 49 percent had not planned on taking any trips—they had no trips to cancel. Regardless of household income, only 5 to 8 percent of those who had planned a 2020 trip still traveled despite the risk. 

Source: Census Bureau, Household Pulse Survey, Week 18 (October 28–November 9) 

1.1 Million Fewer Children in the United States

The number of children in the United States fell by 1.5 percent between 2010 and 2019, according to the Census Bureau's population estimates, a decline of 1.1 million. Non-Hispanic whites were the only race and Hispanic origin group to experience a decline, however, with 7.8 percent fewer non-Hispanic white children in 2019 than in 2010. Among Blacks, the population under age 18 grew by just 0.9 percent during those years.

Percent change in population under age 18 by race and Hispanic origin, 2010–19

	percent change
Asians	15.7%
Blacks	0.9%
Hispanics	8.8%
Non-Hispanic whites	-7.8%

The non-Hispanic white share of the nation's children fell from 54 to 50 percent between 2010 and 2019.

Source: Demo Memo analysis of the Census Bureau's 2019 Population Estimates

8.6 Trips Per Day Out of the Average Household

Stir crazy may be the best way to describe the American public over the next few weeks. We are accustomed to being out and about. Staying at home will be a new experience for the growing number who are practicing social distancing or in self-quarantine to slow the spread of Covid-19.

For the average household, a household member walks out the door 8.6 times per day. That's 3.37 trips a day for each household member. Here's how those person trips break down...

Person trips per day (and average miles traveled per person) by trip purpose
Total per person: 3.37 trips (39 miles)
Going to work: 0.59 trips (7 miles)
Shopping/errands: 1.3 trips (10 miles)
School/church: 0.37 trips (3 miles)
Social/recreation: 0.93 trips (11 miles)

The number of person trips per day does not vary much by age, ranging from a low of 2.8 trips for children under age 16 to a high of 3.7 for people aged 35 to 65. The number of miles traveled per day ranges from a low of 25 for children to a high of 45 for people aged 21 to 65.

Source: Federal Highway Administration, National Household Travel Survey, Summary of Travel Trends: 2017 National Household Travel Survey

Average Household Spending on Travel Tops $1,800

Americans are spending more on travel than ever before. The average household spent $1,852 on travel in 2017, according to the Bureau of Labor Statistics' Consumer Expenditure Survey. This is 7 percent more than it spent in 2007, after adjusting for inflation. A 7 percent increase doesn't sound like much, but consider this: travel spending fell 15 percent between 2007 and 2010, in the aftermath of the Great Recession. Between 2010 and 2017, average household spending on travel grew 26 percent.

Average household spending on travel, 2007 to 2017 (in 2017 dollars)
2017: $1,852
2010: $1,468
2007: $1,735

The single biggest item in the average household's travel budget is lodging, which accounts for 27 percent of total travel spending. Airline fares are second at 24 percent of the budget, and restaurant meals (17 percent) are third. Together, these three items account for two-thirds of household spending on travel. The remaining one-third of the budget is accounted for by a range of items listed here in rank order: recreational expenses on trips, gasoline on trips, alcohol on trips, ship fares, groceries purchased while traveling, local transportation on trips, train fares, luggage, vehicle rentals, parking fees and tolls on trips, and intercity bus fares.

Between 2010 and 2017, average household spending increased on all but two travel budget items, after adjusting for inflation. Average household spending on gasoline fell 18 percent because of lower gas prices. Spending on vehicle rentals fell by a larger 30 percent because of competition from ride-sharing services such as Uber and Lyft.

One of the biggest gains in travel spending was experienced by the category "local transportation on trips," which includes spending on ride-sharing services. Between 2010 and 2017, average household spending on local transportation on trips climbed 45 percent, after adjusting for inflation. In 2010, the average household spent 52 percent more on rented vehicles than on local transportation when traveling. Ride-sharing has reversed this pattern. In 2017, the average household spent 36 percent more on local transportation than on rented vehicles when traveling.

Source: Demo Memo analysis of the Consumer Expenditure Survey

Boomers with Travel Bucket Lists

How many travel destinations are on your bucket list? For Boomers, the magic number is 8, according to an AARP survey of Boomers who have traveled for leisure in the past two years.

Overall, 46 percent of Boomers have a bucket list, with travel being the most popular item on those lists—83 percent of Boomers with a bucket list name travel as an item on their list.

For Boomers with a travel-related bucket list, 47 percent of destinations are international and 53 percent are domestic. Australia is the top international destination, followed by Italy and UK/Ireland. Hawaii, Alaska, and California are the top three domestic destinations.

Source: AARP Travel Research: 2017 Travel Bucket Lists

Navigating by Smartphone

Two out of three (67 percent) smartphone owners use their phones for turn-by-turn navigation while driving, according to a Pew Research Center report. Here is the percentage of smartphone owners who do so by age...

Aged 18 to 29: 80%
Aged 30 to 49: 72%
Aged 50 to 64: 52%
Aged 65-plus: 37%

Source: Pew Research Center, The Smartphone: An Essential Travel Guide

Americans Are Traveling Less

Americans are traveling less than they did before the Great Recession, according to data collected by the Consumer Expenditure Survey. The number of domestic trips taken by American households fell 14 percent between 2006 and 2013, from 230 million to 198 million. The number of international trips fell 25 percent during those years, from 17 million to 13 million. Neither domestic nor international travel show recovery from the Great Recession.

In an analysis of the CES travel data, BLS economist Geoffrey D. Paulin finds a surprise. Although the number of trips has declined, the length of trips has increased a bit. On domestic trips in 2013, households spent an average of 4.1 nights away from home—up from 3.8 nights in 2006. On international trips in 2013, households spent 12.6 nights away, up from 10.5 in 2006.

Households spent an average of $583 on each domestic trip in 2013—about 4 percent more than the $568 spent in 2006, after adjusting for inflation. Not surprisingly, households spent more on international travel—an average of $3,273 per trip in 2013. This is 16 percent more than the $2,830 spent in 2006.

Source: Bureau of Labor Statistics, Monthly Labor Review, Travel Expenditures, 2005-2013: Domestic and International Patterns in Recession and Recovery

Travelers 50-Plus

The average household spends about $1,500 on travel each year, according to the Consumer Expenditure Survey. The biggest spenders on travel are older Americans. The AARP recently surveyed Americans aged 50-plus to examine how frequently they travel for nonbusiness purposes and how they make arrangements for their trips. Some of the findings...

• Number of trips per year of more than 250 miles: 3.32 
• Most frequent travelers: 60-to-69-year-olds (3.81 trips per year)
• Percent using the Internet to book trip arrangements: 84%
• Top two reasons for travel: spend time with family (59%) and vacation (44%)

Source: AARP, AARP Online Travel Study

Summer Vacation

Nearly two-thirds of Americans (64 percent) plan to take a summer vacation, according to a Harris Interactive survey. The most popular vacation destination is--no surprise--the beach, with 38 percent of those who plan to take a vacation going to the beach. The number two vacation destination is more surprising--a city center. Twenty-seven percent of vacationers say the downtown of a city is their vacation destination. The city is a more popular vacation destination than the countryside (23 percent), national or state park (23 percent), or theme park (21 percent).

Source: Harris Interactive, One-Third of Americans Less Likely to Travel This Summer Due to Economic Outlook

Frequency of Flying

Percent distribution of American adults by the frequency with which they fly commercial airlines for business or personal reasons...

Never: 33%
Less than once a year: 31%
About once a year: 18%
Two to three times a year: 12%
Every two to three months: 5%
Once a month or more: 2%

Source: Harris Interactive, American Flyers Willing to Pay More for Personal Space

Visitors from Abroad

When travelers from abroad visit the United States, most do not venture beyond a single state, according to the Office of Travel and Tourism Industries. For visitors from selected countries, here is the number who flew into the United States in 2011 (and the percentage of travelers who visited only one state)...

Australia: 1,038,000 (39%)
Brazil: 1,508,000 (60%)
China: 1,089,000 (48%)
France: 1,504,000 (63%)
Germany: 1,824,000 (61%)
India: 663,000 (57%)
Italy: 892,000 (67%)
Japan: 3,250,000 (87%)
Spain: 700,000 (65%)
United Kingdom: 3,835,000 (72%)

Source: Office of Travel and Tourism Industries, International Visitation in the United States, 2011 U.S. Travel and Tourism Statistics (Inbound)

Americans Abroad

In 2011, more than 27 million Americans traveled abroad by air, according to the Office of Travel and Tourism Industries. Thirty-nine percent were traveling on vacation, 35 percent were visiting friends or relatives, and 18 percent were doing business.

Among U.S. residents who traveled abroad by air, 84 percent visited only one country. The most popular destinations (excluding Mexico and Canada) were the United Kingdom (9 percent), France (7 percent), Italy (6 percent), and Germany (6 percent).

Americans who traveled abroad had an above-average median household income of $96,500. The average traveler spent $1,351 on airfare and $1,320 at their destination.

Source: Office of Travel and Tourism Industries, Profile of U.S. Resident Travelers Visiting Overseas Destinations: 2011 Outbound

Heavy Traffic

The worst part about traffic congestion is not the stop-and-go, delays, or wasted gas, but the unpredictability of it all. If you need to be somewhere at a certain time, you don't know how long your trip will take, forcing you to add extra travel time to your schedule.

That's called Planning Time as opposed to Travel Time, according to Texas A & M Transportation Institute's 2012 Annual Urban Mobility Report. The Transportation Institute has not only named this annoyance, but also measures it using the Planning Time Index or PTI. If your trip has a PTI of 3.00, that means you have to schedule 60 minutes for a trip that would take 20 minutes in light traffic if you want a 95 percent chance of getting there on time.

Average PTI varies by size of metropolitan area from a high of 4.08 in metro areas with populations of 3 million or more to 2.09 in metros with fewer than 500,000 residents. The most unpredictable commute is in Washington, D.C., which has a PTI of 5.72. In other words, when traveling the freeways around Washington, D.C., you have to multiply the estimated commute time in light traffic by six (!) to have a 95 percent chance of getting to your scheduled appointment on time.

Travel Spending, 2005 to 2011

Because of the Great Recession and slow economic recovery, Americans have been less likely to travel and consequently are spending less on it. A new analysis by the Bureau of Labor Statistics shows how much they've cut.

Overall, 29 percent of households spent on travel in 2011, down from 32 percent in 2005. This decline may seem trivial, but as the BLS notes it represents a 10 percent decline in the number of traveling households. Every travel subcategory from airline fares to lodging, restaurant meals, and gasoline on trips, experienced a decline in household spending. The average household spent $1,372 on travel in 2011, down from $1,489 in 2005 after adjusting for inflation. Among the 29 percent of households that spent on travel in 2011, the average amount spent was $4,700.

Source: Bureau of Labor Statistics, Travel Expenditures, 2005-2011: Spending Slows during Recent Recession

Flying Demographics

Percentage of Americans who have flown on a commercial airliner in the past year by age...
18-29: 60%
30-49: 56%
50-64: 53%
65-plus: 33%

Source: Gallup, Americans' Views of TSA More Positive than Negative

Retirement Dreams

When workers are asked which one activity best describes how they dream of spending their retirement, the largest share say travel (41%).

Source: Transamerica Center for Retirement Studies, The 13th Annual Transamerica Retirement Survey, Redefining Retirement: The New 'Retirement Readiness'

Where Do the French Go on Vacation?

Glad you asked. Thanks to a study by Eurobarometer, the survey arm of the European Commission, we know the answer. Among the French who plan to take a vacation in 2011, the 57 percent majority say they will spend their main vacation in France. A distant second in popularity is Spain (6 percent), followed by Italy (3 percent).

What do the Italians say? Seventy-one percent say they will spend their main holiday in Italy. France is their second choice (4 percent), followed by Spain (4 percent).

You can get this information for 32 European countries here (click on Survey on the Attitudes of Europeans towards Tourism).

Wouldn't it be nice to have this kind of information for each state in the United States? How many people in New York plan to vacation in Florida? How many from South Carolina will vacation in North Carolina? Yes, it would be nice.

Real Estate Industry Is Aging--Fast

The collapse of the housing market is transforming the National Association of Realtors, the professional association of the real estate industry. According to demographic research produced by Nikolai Kolding, a partner in the real estate consulting group REAL Trends, the median age of NAR members is rising rapidly, climbing from 51 to 56 between 2006 and 2011. Behind the aging of NAR is its changing demographics. Not only is total membership shrinking, but the biggest declines are occurring among younger members.

Overall, NAR's membership fell 21 percent between 2006 and 2011, says Kolding, from 1.36 million to 1.07 million. By age group, the changes look like this...

under age 35: -50%
35 to 44: -45%
45 to 54: -32%
55 or older: +4%

Kolding comments: "The industry is very rapidly aging in part due to the fact that younger sales agents appear to be leaving the business in droves....this may be greatly hurting an industry that is trying to relate to an ever-younger pool of potential buyers."

As a profession, the real estate industry is not alone in coping with enormous demographic change as younger adults look elsewhere for economic opportunity. According to unpublished tables from the Bureau of Labor Statistics, the median age of the overall labor force climbed from 40.8 in 2006 to 42.0 in 2010 (the latest data available) because of the aging of the baby-boom generation. Some occupations are aging more rapidly, however, as younger adults shy away from uncertainty. The median age of bookkeepers, for example, climbed from 45.2 to 47.7 between 2006 and 2010. Postmasters aged from 51.5 to 53.5, travel agents from 46.0 to 48.5, and bridge and lock tenders aged by nearly 10 years--from 46.7 to 56.6. Bottom line: The age composition of occupations can change rapidly depending on perceived economic opportunity.

In his monthly newsletter, Kolding offers advice to the real estate industry: "We believe brokers would be well served building the rental and property management businesses to prepare for the growing proportion of the population that will rent rather than buy. Many of the companies we deal with that have strong rental and brokerage units tell us that the rental division often attracts a younger professional who, in time, moves on to the brokerage side. It would seem that expanding your rental business could potentially address two challenges at once."