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US holiday budgets have dropped by 20 percent
Posted on 09/06/2017

EconomyUnited Kingdom

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According to data recently published by the annual Generali Global Assistance consumer survey tourists around the world are tightening their belts and reducing holiday spending. The survey found that people are taking shorter holidays and prefer to travel within their own country.

European holiday spending down by 14 percent

European holiday spending down by 14 percent
haveseen/123RF

Budget constraints are having an impact on holiday consumer spending. There is a 5 point increase in Americans planning to go on holiday this summer, however the 66 percent who responded yes, will on average take a shorter 1.4 week break as opposed to 1.7 weeks taken last year.

Moreover, in line with shorter holidays, travelers' budgets have decreased by 20 percent, to an average of 2,679 dollars. The same goes for Europeans, who are downsizing their holiday spending by 14 percent to 1,989 euros.

In an official statement, Generali Global Assistance North America CEO Chris Carnicelli said "This is significant because budget once again ranked as the No. 1 factor for travelers when deciding on a summer vacation location."

Perhaps the most telling evidence that consumers are more financially constrained this year are the findings pertaining to travel destinations. In fact, only residents of Belgium and the Switzerland where planning on taking their summer holiday abroad.

In contrast, 63 percent of French respondents and just over half of Italians (52 percent) and Spanish (56 percent) are all choosing to stay within their country over summer.

For the majority of Europeans (63 percent), a summer spent tanning and swimmig on a beach holiday is their priority. However, perhaps somewhat surprisingly, the top destination for U.S. travelers' was urban locations, followed by the beach, the mountains, the countryside and touring.

The survey also concluded that the British are best at separating their work and social life with 70 percent saying they'd will completely disconnect from work while on holiday and the average for Europe was 68 percent. However, the Americans stay connected to their work life and only 56 percent will unplug.

The reduced consumer spending is a worry for the tourism industry which could face financial losses as a result.

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