This is Bloomberg Business Week with Carol Messer and Tim Stenebek on Bloomberg Radio. All right, so we've talked a lot about retail, which gives you a great idea in terms of what's going on in the consumer world. Another thing is travel, and it also tells us kind of what's going on in the economy. So let's get to it with Haley Berg. She's lead economist at the mobile travel app Hopper, and she joins us on the phone in New York City. Hailey, good to have you here.
Tell us what you are seeing when it comes to the travel industry. As we head into the summer travel season.
We're headed into the busiest time of year for travel, and really we're expecting this to be the biggest summer for travel since pre pandemic. International travel has completely opened up since last year, and domestic travel remains very strong, especially as prices are down about twenty percent from this time last year. All in, it looks like it's going to be a busy summer and an extremely expensive summer for those travelers who are headed abroad, but they're not being held back by fares.
Yeah.
We actually heard from Jen bartashas we were talking to our Bloomberg Intelligence retail analyst and she said, you know, middle class to wealthier people are shopping for food at cheaper stores, so they can still afford to spend money on discretionary items. I guess travel is one of those. You don't see anybody holding back. I mean, is nobody balking at the incredibly high prices.
What we're really seeing Hopper is travelers are taking that same or a slightly larger travel budget and trying to stretch it further. So maybe previously they've been taking one trip a year, Now they're taking two trips on the same budget, So that means they're engaging in deal seeking behavior. You know, more than fifty percent of our Hopper customers are booking the cheapest flight that's available to them at
the time they're searching. We're seeing them check prices about fifty percent more often, even as they plan trips more last minute. So though travelers are still spending and taking more trips, they are finding ways to stretch that budget quite a bit further.
So talk to U about some numbers. A Bloomberg. We love to hear about numbers and percentage changes. So give me an idea if you're heading from New York over to Europe, pick your city or whatever. What are we looking for in terms of airfares?
Average airfare from the US to anywhere in Europe about twelve hundred dollars right now. There are some destinations direct from New York City as low as eight or nine hundred dollars round trip, But overall that twelve hundred ticket price on average, that's about thirty seven percent from this time last year, and in twenty nineteen that's about three hundred and twenty dollars more per ticket for travelers who are headed to Europe, which is the top destination for summer vacation.
AH, Where are they going in Europe? Is it just in general the continent or are people going specifically to Spain or Italy or Greece?
Paris we typically see London, Paris and Rome are the top three, the ultimate trifecta. They're definite destinations for tourists who are just dipping their toe in Europe. But we do also see demand some of these smaller cities, especially in Italy. Sicily is popular coming off the success of the White Lotus, but we've also seen Venice and Milan right Lotus.
It's really a thing in terms of travel.
It absolutely, as we call it, set jetting. It happened with Croatia and Iceland win Game of Thrones was released, It's happening with Yellow Show and White Lotus.
I'm just saying it was a little eerie.
It was great, though I love both seasons. I will say pro tip to those looking to travel to Europe over the summer. It is extremely hot in southern Europe. If you want to go to Sicily in August, I don't want to be with you because you are going to be pouring with sweat. I would much rather be in Scandinavia in August because it's so hot they the Spaniards don't even go outside. They just they just sit inside and sleep all day and then at night they go in the pool.
That's why September and October are actually the best bet for travel to Europe. You'll pay as much as thirty percent less than you will to go in June or July. Temperatures will be better. And keep in mind Americans are on vacation all summer. Europeans often go on multi week vacations in August, so if you're going in August, you're going to be facing crowds of tourists from around the world. September is going to be lighter crowds, less expensive for accommodations and airfare.
So what's your advice for folks who want to travel?
Plan ahead if possible, So right now you're booking way too late. If you want to go somewhere internationally this summer, you are going to pay quite a bit MOARM and be flexible. So if you can plan ahead to go this fall, get lower prices, flive mid week if possible, you'll save about fifty to one hundred dollars on domestic airfare, one fifty to two hundred on international and flight early
in the day. Delays cancelations twice as likely to hit you if you depart after eight am, So there is something to Taking that first flight out of the day on a Monday or Tuesday will save you some stress, it will save you some money as well.
What about airbnbs? What's your verdict on You know, we went to Austin for the Moto GP a couple weeks ago and hotels were like a grand We found an airbnb that was less than half the price and it was pretty good. I mean they no one comes to change your sheets every day, but it was nice and you know, with the extra money, we were able to go to more expensive restaurants for dinner.
We can send you out, okay, see rental hose Yes, water. Rental homes extremely popular, especially around destinations at the beach or Disney. Disney's hugely popular for vacation homes. Often larger groups of family members are there, and it really helps bring down the cost of maybe getting multiple hotel rooms.
But keep in mind that those rental homes can book out really far in advance, especially in popular destinations, and hotel rooms on the other hand, drop in price when you book at the last minute, so way your options. If you're looking for more space, rental homes can definitely be more economical, but at times, if you're booking last minute hotels, you can get a fabulous deal, especially in big cities.
All Right, we're going to leave it there. We're'll let you go get some water, because I'm a little worried about you, Hailey, come on back soon. We'd love to continue with you at a future date. Haleyburg lead economist Diffred Hopper joining us on the phone in New York City,