2023 TPG Travel Insights Report

We've all heard that "travel is back," with a noticeable shift in how people approach their trips. But what does this really entail? Our team of experts monitors all the developments across the airline, hotel, and cruise sectors — as well as the associated credit cards and loyalty programs — and has put together this groundbreaking report detailing the current evolution of travel.

Access the complete 2023 TPG Travel Insights Report in PDF format here.

From pent-up demand to a new standard

Vacations are extending in duration, and the distinction between business and leisure travel is increasingly blurred. Nevertheless, 2023 began with the scaling back of many "work from anywhere" policies.

Concerns about a recession are surfacing, but so far, they haven't dampened the desire to travel. While Americans may have finally satiated their pent-up wanderlust, they continue to pour significant resources into travel experiences.

Expansion in both luxury and budget-friendly options

The dedication to luxury travel remains robust, with hotels constructing more upscale properties and cruise lines unveiling lavish expedition ships destined for Antarctica and the Arctic.

However, this doesn’t mean that budget-conscious travel is being neglected.

Beyond luxury, cruise lines are constructing larger ships that will break every record we currently have. These colossal vessels will offer something for everyone — but be mindful of the details, as the number of mandatory fees for these predominantly all-inclusive experiences is on the rise.

The preferences of hotel travelers are changing

On land, the once-niche segment of all-inclusive resorts has become mainstream, with leading hotel chains jumping on board. Hilton, Hyatt, and Marriott, which had just 30 of these resorts four years ago, now boast over 150 and are planning to expand further.

In addition, major hotel chains are investing in new brands that travelers may not yet recognize. A decade ago, the five largest hotel chains collectively offered 49 brands; today, that number has surged to over 130. This expansion is fueled by developers' desire for lower construction and maintenance costs, the shift away from full-service restaurants and ballrooms, and the ongoing strength of loyalty programs.

Pricing trends

Regrettably, there appears to be little relief on the horizon regarding prices. Hotel rates and airfares are projected to stay elevated.

Travelers will notice larger aircraft on most routes due to the retirement of the smallest regional jets. However, this change also means that many small towns and cities are losing flights. Some startups are attempting to bridge this gap, but they are unlikely to fully resolve it.

Advance planning continues to be essential

In conclusion, it's important to emphasize the need for thorough planning when it comes to travel today. While there is an undeniable thrill to spontaneous trips, the lessons learned during the pandemic have led many popular attractions to maintain reservation systems that help manage crowd sizes, despite the easing of strict capacity limits.

Advance preparation is also crucial for obtaining IDs and enrolling in programs designed to reduce wait times. We are currently experiencing monthslong delays for passport renewals and Global Entry interviews. Furthermore, starting May 2025, anyone flying domestically will need a specially verified driver's license known as a Real ID, which must be obtained in person at the DMV.

At present, only 53% of Americans possess a Real ID. Although two years may seem like a long time, envision the chaos at the DMV when everyone rushes to get new licenses before their summer travels. It’s bound to be a hectic scene.

We hope you find this detailed overview of the current travel landscape enjoyable. As you embark on your 2023 adventures to both familiar and new destinations, we encourage you to take a moment to uncover something surprising. Explore that hidden local shop or peaceful little park that isn’t featured in travel guides; it will enhance your journey significantly.

Access the complete 2023 TPG Travel Trends Report in PDF format here.