2021 Travel Trends Report

2021 TravelTrends Report

OverviewIn December 2020, Expedia Group conducted astudy of 2,200 Americans in collaboration with dataintelligence firm The Morning Consult to betterunderstand how the travel industry has evolved sincethe outset of the pandemic, and the way consumersare feeling about traveling in the year ahead.The generations include:Gen ZMillennialsGen XBaby Boomers:1997-20121981-19961965-19801946-1964The purpose of this report is to provide a holistic view of the outlook on travel. We encourage all travelers to makeresponsible travel decisions, including adhering to guidance issued by governments and health authorities.Expedia Group’s 2021 Travel Trends ReportTM2

Looking backat 2020Before we dive into 2021, let’s reflect.Travelers had to endure a change ofplans — but the trips takenwere worth it.34%had a shorterbooking window30%opted to driveover othermethodsof transportationStill, the majority of travelers discoveredunexpected benefits of taking trips for leisure or businessduring the pandemic.78%37%29%25%enjoyed pandemictravel more thananticipatedexperienced lesscrowded restaurants,bars and shopsexplored a newdestination outsidetheir areaparticipated innew outdooractivitiesExpedia Group’s 2021 Travel Trends ReportTM3

Predictionsfor 2021TM

#1Travel will serve as aforce for good.In the year ahead, travel will play an increasingly critical role in strengtheningconnections, broadening horizons, and bridging divides.The majority of Americans agree that travel:63%62%56%Creates greaterculturalunderstandingMakes me feelmore connectedto the worldIs healingExpedia Group’s 2021 Travel Trends ReportTM5

Initiatives to reduce thespread of COVID-19will fuel travelindustry recovery.46%42%are more likely to travel when aCOVID-19 vaccine is madewidely availablesaid positive news surrounding aCOVID-19 vaccine made themmore hopeful about travel,or drove them to book a tripMarried couples and city dwellers will befirst to travel following the wide release ofa COVID-19 vaccine.#239%believe instituting travel bubbleswill help keep communities safeThe graphs below represent thepercent of respondents who report being more willing to travelas soon as a COVID-19 vaccine iswidely a Group’s 2021 Travel Trends ReportTM30 %Unmarried40%6

#3Travelers will embarkon more trips andextend their vacations.After months in relative isolation, the pent-up demand for travel is significant. With theadvent of the vaccine and other treatments, people are starting to believe normal lifeis within reach — and they can’t wait to explore the world and see loved ones.44%will take more trips in 2021compared to 2020.39say their next vacation willbe at least a week.%Expedia Group’s 2021 Travel Trends ReportTM7

Consumer spendingon travel will be high in2021.Among those whoplan to travel,Millennials and thoseon the West Coastand in the Northeastwill splurge the most.Respondents in the followinggeographic breakdown saythey will spend more on travelin 2021 compared to 2020: 3,444saved onaverage for thenext trip in 2021.But, Millenials arespending far more#452%NORTHEAST50%SOUTH35%MIDWEST32%WEST 5,462And travelers are willing to cut back on personal expensesto afford more trips. Here’s what they would give up:43%38%dining out orgetting takeoutalcoholExpedia Group’s 2021 Travel Trends ReportTM25%streaming services8

#5Travelers willuse their savings ona dream vacation.Compared to Boomers, 2x as many Gen Zers have a bucket list tripplanned and hope to take it soon.56%Want a beachvacation51%Would love to take aU.S. landmark tourExpedia Group’s 2021 Travel Trends ReportTM45%Can’t wait to board acruise9

People will travel withthose they’ve beenclosest to throughoutthe pandemic.#6Immediate family outside my quaranteamMost popular travel companions:12Children3QuaranteamImmediate family outside my quaranteamLeast popular travel companions:12Persons at risk ofcontracting COVID-19Those with different viewson the pandemicExpedia Group’s 2021 Travel Trends ReportTM3Friends or family outside my quaranteam10

Here’s a snapshot of whatseveral Expedia Groupbrands are forecastingin the year aheadTM

April to September is themost popular time to travel,and younger generationsare leading recovery.#7An Expedia Group Media Solutions survey of 11,000 individuals across 11 countries found thatMillennials and Gen Z will be traveling the most this year, dependent on restrictions. Allgenerations are hopeful about travel in the spring and summer compared to early in the year.Seasonality plays a role here, but this trend could in part be due to optimism about traveling a bitmore freely and internationally in the latter half of the year.Estimated Future TripsLeisure75%50%25%0%GlobalGen ZQ42020Q12021MillenialsQ22021Gen XQ32021BoomersSilent GenerationView the full report by Expedia Group Media Solutions, Understanding TravelerSentiment & InfluencesExpedia Group’s 2021 Travel Trends ReportTM12

Cities will makea comeback.#8U.S. travelers are already booking their return to cities,according to Brand Expedia 's top arrival destinationsbased on flight demand.H1 Top Fly-To Destinations12345678910CancunOrlandoLas VegasMiamiDenverNew YorkLos AngelesFort LauderdaleChicagoPhoenixH2 Top Fly-To Destinations12345678910CancunOrlandoLas VegasHonoluluKahuluiNew YorkSaturdayBest day of the week to bookair travelThursday/FridayBest days to depart for travelLos AngelesSeattleLondonMiamiView Brand Expedia’s 2021 traveltrends report and resourcesBrand Expedia flight demand data as of Jan. 2021. H1 is defined as Januarythrough June 2021; H2 is July through December 2021.Expedia Group’s 2021 Travel Trends ReportTM13

Families will continueto embark on drivableflexcations together.#9Vrbo discovered many families will still stick close to home and enjoy flexcations — blendingplay with remote work and school. The findings below were sourced from a survey of 8,000 people across 8 countries and Vrbo demand data.In the U.S.:67%65%Across the globe:of families who took aFlexcation this year wouldembark on a similar trip againplan on traveling more thanthey did pre-COVID63%60 %of families say they preferoutdoorsy destinations overurban settingswant to travel to a newdestination rather than onethey’ve been to beforeTop Drivable Destinations1 Broken Bow, OK2 Boone, NC&3 Naples, FL5 GatlinburgPigeon Forge, TN4 Miramar & RosemaryBeach, FLVrbo vacation rental demand comparing Jan. 1 – June 30, 2021 and Jan. 1 – June30, 2020 as of Dec. 2020.Expedia Group’s 2021 Travel Trends ReportTMView Vrbo’s full 2021 traveltrends report and resources14

Parents will planand book tripsearly.#10A recent Travelocity survey of more than 1,000 American parents foundthat parents are 2x more likely than those without kids to have traveledsince the start of the pandemic, and they’re feeling very optimistic abouttaking trips in the year ahead.56%had already started or were aboutto begin planning their nextvacation by the second week ofJanuary.55%report feeling extremely confidentabout 2021 travel.View more Travelocity resourcesExpedia Group’s 2021 Travel Trends ReportTM15

Travel is a force for good.

Best day of the week to book air travel Best days to depart for travel View Brand Expedia's 2021 travel trends report and resources #8 T Expedia Group's 2021 Travel Trends Report 13 Cities will make a comeback. Brand Expedia flight demand data as of Jan. 2021. H1 is defined as January through June 2021; H2 is July through December 2021.