WEBVTT - Summer Travel Prices Are Heating Up

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 1>Stenebek on Bloomberg Radio. All right, so we've talked a

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<v Speaker 1>lot about retail, which gives you a great idea in

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<v Speaker 1>terms of what's going on in the consumer world. Another

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<v Speaker 1>thing is travel, and it also tells us kind of

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<v Speaker 1>what's going on in the economy. So let's get to

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<v Speaker 1>it with Haley Berg. She's lead economist at the mobile

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<v Speaker 1>travel app Hopper, and she joins us on the phone

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<v Speaker 1>in New York City. Hailey, good to have you here.

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<v Speaker 1>Tell us what you are seeing when it comes to

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<v Speaker 1>the travel industry. As we head into the summer travel season.

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<v Speaker 2>We're headed into the busiest time of year for travel,

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<v Speaker 2>and really we're expecting this to be the biggest summer

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<v Speaker 2>for travel since pre pandemic. International travel has completely opened

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<v Speaker 2>up since last year, and domestic travel remains very strong,

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<v Speaker 2>especially as prices are down about twenty percent from this

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<v Speaker 2>time last year. All in, it looks like it's going

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<v Speaker 2>to be a busy summer and an extremely expensive summer

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<v Speaker 2>for those travelers who are headed abroad, but they're not

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<v Speaker 2>being held back by fares.

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<v Speaker 1>Yeah.

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<v Speaker 3>We actually heard from Jen bartashas we were talking to

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<v Speaker 3>our Bloomberg Intelligence retail analyst and she said, you know,

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<v Speaker 3>middle class to wealthier people are shopping for food at

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<v Speaker 3>cheaper stores, so they can still afford to spend money

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<v Speaker 3>on discretionary items. I guess travel is one of those.

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<v Speaker 3>You don't see anybody holding back. I mean, is nobody

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<v Speaker 3>balking at the incredibly high prices.

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<v Speaker 2>What we're really seeing Hopper is travelers are taking that

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<v Speaker 2>same or a slightly larger travel budget and trying to

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<v Speaker 2>stretch it further. So maybe previously they've been taking one

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<v Speaker 2>trip a year, Now they're taking two trips on the

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<v Speaker 2>same budget, So that means they're engaging in deal seeking behavior.

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<v Speaker 2>You know, more than fifty percent of our Hopper customers

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<v Speaker 2>are booking the cheapest flight that's available to them at

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<v Speaker 2>the time they're searching. We're seeing them check prices about

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<v Speaker 2>fifty percent more often, even as they plan trips more

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<v Speaker 2>last minute. So though travelers are still spending and taking

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<v Speaker 2>more trips, they are finding ways to stretch that budget

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<v Speaker 2>quite a bit further.

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<v Speaker 1>So talk to U about some numbers. A Bloomberg. We

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<v Speaker 1>love to hear about numbers and percentage changes. So give

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<v Speaker 1>me an idea if you're heading from New York over

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<v Speaker 1>to Europe, pick your city or whatever. What are we

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<v Speaker 1>looking for in terms of airfares?

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<v Speaker 2>Average airfare from the US to anywhere in Europe about

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<v Speaker 2>twelve hundred dollars right now. There are some destinations direct

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<v Speaker 2>from New York City as low as eight or nine

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<v Speaker 2>hundred dollars round trip, But overall that twelve hundred ticket

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<v Speaker 2>price on average, that's about thirty seven percent from this

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<v Speaker 2>time last year, and in twenty nineteen that's about three

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<v Speaker 2>hundred and twenty dollars more per ticket for travelers who

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<v Speaker 2>are headed to Europe, which is the top destination for

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<v Speaker 2>summer vacation.

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<v Speaker 3>AH, Where are they going in Europe? Is it just

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<v Speaker 3>in general the continent or are people going specifically to

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<v Speaker 3>Spain or Italy or Greece?

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<v Speaker 2>Paris we typically see London, Paris and Rome are the

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<v Speaker 2>top three, the ultimate trifecta. They're definite destinations for tourists

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<v Speaker 2>who are just dipping their toe in Europe. But we

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<v Speaker 2>do also see demand some of these smaller cities, especially

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<v Speaker 2>in Italy. Sicily is popular coming off the success of

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<v Speaker 2>the White Lotus, but we've also seen Venice and Milan

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<v Speaker 2>right Lotus.

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<v Speaker 1>It's really a thing in terms of travel.

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<v Speaker 2>It absolutely, as we call it, set jetting. It happened

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<v Speaker 2>with Croatia and Iceland win Game of Thrones was released,

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<v Speaker 2>It's happening with Yellow Show and White Lotus.

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<v Speaker 1>I'm just saying it was a little eerie.

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<v Speaker 3>It was great, though I love both seasons. I will

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<v Speaker 3>say pro tip to those looking to travel to Europe

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<v Speaker 3>over the summer. It is extremely hot in southern Europe.

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<v Speaker 3>If you want to go to Sicily in August, I

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<v Speaker 3>don't want to be with you because you are going

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<v Speaker 3>to be pouring with sweat. I would much rather be

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<v Speaker 3>in Scandinavia in August because it's so hot they the

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<v Speaker 3>Spaniards don't even go outside. They just they just sit

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<v Speaker 3>inside and sleep all day and then at night they

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<v Speaker 3>go in the pool.

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<v Speaker 2>That's why September and October are actually the best bet

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<v Speaker 2>for travel to Europe. You'll pay as much as thirty

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<v Speaker 2>percent less than you will to go in June or July.

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<v Speaker 2>Temperatures will be better. And keep in mind Americans are

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<v Speaker 2>on vacation all summer. Europeans often go on multi week

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<v Speaker 2>vacations in August, so if you're going in August, you're

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<v Speaker 2>going to be facing crowds of tourists from around the world.

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<v Speaker 2>September is going to be lighter crowds, less expensive for

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<v Speaker 2>accommodations and airfare.

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<v Speaker 1>So what's your advice for folks who want to travel?

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<v Speaker 2>Plan ahead if possible, So right now you're booking way

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<v Speaker 2>too late. If you want to go somewhere internationally this summer,

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<v Speaker 2>you are going to pay quite a bit MOARM and

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<v Speaker 2>be flexible. So if you can plan ahead to go

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<v Speaker 2>this fall, get lower prices, flive mid week if possible,

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<v Speaker 2>you'll save about fifty to one hundred dollars on domestic airfare,

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<v Speaker 2>one fifty to two hundred on international and flight early

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<v Speaker 2>in the day. Delays cancelations twice as likely to hit

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<v Speaker 2>you if you depart after eight am, So there is

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<v Speaker 2>something to Taking that first flight out of the day

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<v Speaker 2>on a Monday or Tuesday will save you some stress,

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<v Speaker 2>it will save you some money as well.

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<v Speaker 3>What about airbnbs? What's your verdict on You know, we

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<v Speaker 3>went to Austin for the Moto GP a couple weeks

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<v Speaker 3>ago and hotels were like a grand We found an

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<v Speaker 3>airbnb that was less than half the price and it

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<v Speaker 3>was pretty good. I mean they no one comes to

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<v Speaker 3>change your sheets every day, but it was nice and

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<v Speaker 3>you know, with the extra money, we were able to

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<v Speaker 3>go to more expensive restaurants for dinner.

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<v Speaker 2>We can send you out, okay, see rental hose Yes, water.

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<v Speaker 2>Rental homes extremely popular, especially around destinations at the beach

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<v Speaker 2>or Disney. Disney's hugely popular for vacation homes. Often larger

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<v Speaker 2>groups of family members are there, and it really helps

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<v Speaker 2>bring down the cost of maybe getting multiple hotel rooms.

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<v Speaker 2>But keep in mind that those rental homes can book

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<v Speaker 2>out really far in advance, especially in popular destinations, and

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<v Speaker 2>hotel rooms on the other hand, drop in price when

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<v Speaker 2>you book at the last minute, so way your options.

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<v Speaker 2>If you're looking for more space, rental homes can definitely

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<v Speaker 2>be more economical, but at times, if you're booking last

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<v Speaker 2>minute hotels, you can get a fabulous deal, especially in

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<v Speaker 2>big cities.

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<v Speaker 1>All Right, we're going to leave it there. We're'll let

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<v Speaker 1>you go get some water, because I'm a little worried

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<v Speaker 1>about you, Hailey, come on back soon. We'd love to

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<v Speaker 1>continue with you at a future date. Haleyburg lead economist

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<v Speaker 1>Diffred Hopper joining us on the phone in New York City,