Leisure travel falls alongside business travel as delta sweeps country

More than two-thirds of people looking to travel for leisure are planning to scale back their plans because of surging cases of COVID-19, according to new industry research.

A survey conducted last month by Morning Consult, on behalf of the American Hotel & Lodging Association and released Tuesday, found that 69% of leisure travelers are likely to take fewer trips, 55% are planning to suspend travel plans, and 42% are likely to cancel existing travel plans with no intent to reschedule.

AIRLINES BEGIN TO FEEL THE SQUEEZE OF THE DELTA VARIANT


The delta variant, which began taking hold in July, has threatened the country’s economic recovery and has raised new case numbers, hospitalizations, and deaths. At their lowest point this year, average daily infections were hovering above 10,000 nationwide. Now, infections are averaging about 132,000 per day, with deaths up more than 30% from two weeks ago.

The new infections, and the subsequent reaction from those in the United States, have particularly affected the vulnerable leisure and hospitality industry, which bore the brunt from the initial waves of pre-vaccine COVID-19 and is still struggling to claw its way back to normalcy.

Tuesday’s polling on leisure travel buttresses another survey conducted for the American Hotel & Lodging Association that was released last week. That poll found that business travel was also taking a gut punch from the delta variant, which has caused offices to delay reopening plans, mask mandates to go back into effect, and some businesses to enact restrictions.

The survey found that that 67% of business travelers are likely to take fewer trips, 60% are expected to postpone travel plans, and more than half are likely to cancel existing travel plans with no intent to reschedule.

The changes in travel patterns have dented what was expected by many in the travel industry to be a combination of business and leisure travel (particularly leisure) fueled by pent-up demand and savings that were bolstered by successive rounds of stimulus spending.

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Last month, as delta began to take hold, both Southwest Airlines and Frontier Airlines told investors that they expected to be hurt by the virus once again. Southwest predicted its third-quarter operating revenue would drop 15% to 20% compared to before the pandemic in 2019.

Additionally, overall consumer sentiment nosedived to the lowest level in a decade last month, according to the University of Michigan index.

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