Travel Outlook: Memorial Day 2022

Memorial Day is one of the most popular US holidays to hit the road or take to the air. No matter where you’re heading this May, the travel industry experts at Koddi have the latest data to keep travel marketers in the know.

 

Demand Overview

Travel demand in 2022 has well surpassed peak 2021 levels, and pent-up demand is tied to record growth expectations. In 2022 we’re now seeing over a 50% increase in air travel YoY, per TSA’s accumulated check-in data. Last year, demand shifted from crowded urban areas to outdoor destinations. While demand for outdoor destinations has remained strong in 2022, we have seen significant growth returning to urban markets, as well.

We expect the demand trends we’ve seen so far this year not only to continue, but to strengthen. We’re predicting record demand and booking growth as we approach the summer months, and onward into 2023.

So far in 2022, hotel demand has surpassed 2021 by an impressive 39%. As we approach Memorial Day and the summer travel spike, we expect this YoY growth to reach even higher levels.

 

Top Memorial Day Destinations

Drilling down to see the projected top hotel destinations, major metropolitan areas remain in high demand throughout spring and as we head into summer, with Orlando being the top destination for travelers. Coast to coast, big cities in the United States, along with select landlocked destinations, are among 2022’s most visited.

In the listing above, index indicates top-ranked cities in terms of demand. Orlando, with the highest demand, is positioned at 100 and all other top-performing cities are ranked against it. For example, Atlanta currently has 87% of the demand of Orlando.

 

How to Leverage These Trends for Your Campaigns

So what does all this mean for hoteliers’ marketing strategy? With a few key considerations and strategic adjustments to channel mix, marketers can hit consumers wherever they’re searching to capture maximum demand.

Take a look at some of Koddi’s proven best practices for ad spend strategy:

Be aggressive to be seen – An aggressive bidding strategy will help ensure maximum exposure for your hotel to potential travelers.

Capture the surge – Particularly in the days leading up to Memorial Day weekend (May 24 – 28), demand is projected to be at its highest for the entire month. When possible, adjust your exposure for these check-in dates. 

Target shorter stay lengths – 

  • Single night stays: Outside of the May 28 and 29 check-in-dates, single night stays make up 95%+ of the daily demand for hotel stays during this period. Position yourself to capture this traffic by ensuring you have accurate and up-to-date rates, as well as availability to fill occupancy.
  • Two-night stays: Surrounding May 28 and 29, we see an uptick in two-night stays, with spikes of up to 24% of daily demand. Brief participation here is an excellent chance to maximize holiday opportunity and generate incremental revenue.

Adopt a portfolio mindset – The best way to drive a high booking volume is to diversify your spending – we recommend a mix of 3+ channels to maximize returns (budget permitting).

Implement sponsored channels – Sponsored listings on direct channels, such as Google Property Promoted Ads (PPA) and Tripadvisor Sponsored Placements (TASP), as well as sponsored listing on OTAs (Expedia, Priceline, Booking.com, etc.) are a complementary addition to metasearch strategies and can drive traffic to hotels for users who haven’t decided on a specific property, but have chosen where they want to go.

Test and learn – Try out different channels in your region, with varying combinations, to optimize both ROAS and exposure.

Consider the “always on” approach – It’s important to adopt an always on approach to ensure maximum exposure and reach potential travelers at all stages of the booking funnel. 

 

In conclusion, Memorial Day kicks off the biggest travel period of the year. Demand is already approaching pre-pandemic levels, and we expect 2022 to ultimately surpass travel rates from previous years. Now is the time for savvy hoteliers and travel marketers to adjust their spending strategies to capture this boom in demand to drive bookings and revenue.

Reach out today to get started optimizing your spending with expert insights from Koddi’s leading analysts.

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