CGA Sees Bev/Al Opportunities in Hotels Soaring as Domestic Travel Grows

As the appetite of US consumers continues to shift in favor of domestic leisure travel, CGA by NIQ’s latest Hotel BevAl Opportunity Study explores the wealth of opportunities for drinks suppliers to supply to increasing demand in this growing sector.

Almost two in five U.S. On Premise visitors expect to take more domestic trips in 2023 versus 2022, with only 6% expecting to travel domestically less often. Plus, around 3 in 5 are planning to do so in the next 3 months. This creates formidable opportunities for brands to capitalize on the US domestic market.

In addition to volume of domestic travel, the data around frequency is also compelling:  37% of US On Premise visitors are planning to travel domestically more often (+26pp versus 2022), compared to a lesser 22% planning international trips on a more frequent basis. Similarly, 20% are expecting to travel internationally less often, compared to just 6% planning less frequent domestic trips, (-31pp versus 2022*).

So, what are the hottest Stateside destinations igniting staycation rates? The research uncovers that some of the most enduringly iconic US leisure attractions, cities and coastal states are continuing to capture the public imagination and dominate domestic tourism markets, with Florida, California, New York, Nevada and Texas ranking as the top five states.

The majority of consumers have already planned or are currently planning their next visit to a hotel, with almost two in five having booked their next stay. This level of proactive forward planning demonstrates the importance of strategic engagement with hotels on the part of suppliers intending to leverage the buoyant domestic leisure tourism sector.

Three quarters of consumers are expected to lean more towards hotel chains, underscoring the potential prize represented by these big brands compared to 2022.

Matthew Crompton, regional director – North America said:

“The global hospitality industry continues to recover and stabilize following an extended period of turbulence, with around three in five US On Premise visitors planning to travel domestically in the next three months.​ A key element to succeeding in this area is by exploring how consumers wish to engage with different touchpoints within the hotels space. This will enable hotels and beverage suppliers to tailor strategies to ensure they are meeting the needs of visitors. With both sides equally as keen to optimize in this area, it’s an opportune time to join forces in order to come up with powerful strategies for mutual wins.” ​

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