Andrew Sharpee’s articles from AlixPartners are most popular:
AlixPartners are most popular:
- with readers working within the Retail & Leisure industries
AlixPartners’ annual Global Consumer Outlook provides
insight into how companies can take advantage of changing behaviors
expected to drive the U.S. travel market in 2026.
Growth opportunities have shifted from the broad post-pandemic
boom to a more selective and value-disciplined market. Travel
growth in the U.S. has lagged that of other major markets, and
AlixPartners’ survey shows that more consumers expect to spend
less on travel in 2026 than the prior year, resulting in a negative
net spend intention of 17 points for 2026.
The primary driver of this lowered intention is economic, and
while consumers still overwhelmingly say they will trim spend by
reducing trip frequency, we are now seeing their behavior further
compress with more planning to travel closer to home, take shorter
trips. In particular, affluent travelers are increasingly seeking
discounts, signaling a potential shift in the luxury market.
Consumer perception of affordability continues to override the
reality of air fares that have fallen in real terms over the past
three years – and down 1.1% in December 2025 – according to
government data. Simply stated, the perceived erosion of value is
rising faster than actual affordability pressures, mirroring trends
in other discretionary categories such as eating out.
For operators, this moves differentiation away from headline
rates alone toward transparency, packaging, and a clear value
ladder across offerings.
The survey also highlights fresh drivers at play, notably an
increased focus on safety and reassurance among younger travelers.
Direct booking continues to gain share, especially among older and
more affluent travelers, and it’s becoming tougher to charge
extra for sustainability-friendly features.
This raises the stakes on execution quality, reliability, and
communication, especially during this time of heightened
disruption. Travel leaders should:
- Localize growth. Prioritize regional, repeat, and short stay
demand to stabilize volume and protect yield - Rebuild value. Tackle affordability concerns with defensible
offerings that avoid discounting and fee proliferation - Streamline execution. Standardize services and processes to
mesh lower labor intensity with improved consistency of
delivery - Monetize the relationship. Distribution and loyalty strategies
built on acquisition cost, lifetime value, and margin
contribution - Declutter corporate spend. Eliminate low ROI programs and
complexity to refocus spend on demand and margin drivers
Compression is the new reality. Bags are still being packed,
just more economically and for shorter stays closer to home.
Affluent behavior is converging on mass market consumers faster
than expected, and inbound international travel remains depressed.
All provide opportunities for operational excellence and
execution.
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