Critical Shifts:
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Road Trips Rule: 60% of fall travelers plan to drive versus 28% flying, with Millennials 4x more likely than Boomers to rent a car.
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Prioritizing Experiences: Over 30% of Gen Z and Millennials are willing to spend extra on memorable experiences and structured itineraries.
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SUVs in Demand: Labor Day pickup peaks Sept. 4, with high rental demand for SUVs and minivans reflecting strong consumer preference for larger vehicles.
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Fall travel is shaping up to be another strong season for road trips, with nearly half of U.S. adults planning to travel and driving significantly outpacing air travel, according to new survey data from Hertz.
The survey found that 46% of U.S. adults plan to travel this fall. Nearly 60% of those travelers expect to drive to their destination, compared with 28% whose trips require a domestic flight.
Younger travelers are driving much of the rental-car demand. Millennials are nearly four times more likely than Baby Boomers to use a rental car as their primary transportation this fall, while Gen Z and Millennials combined are using rental cars at substantially higher rates than Boomers.
Value and Experiences
Travelers are balancing costs with the desire to get more out of their trips. About 31% say they are looking for budget-friendly getaways, while an equal percentage are willing to spend more on memorable experiences.
Millennials and Gen Z are particularly focused on experiences. Thirty-three percent of Millennials and 32% of Gen Z travelers say they are willing to spend more on memorable experiences.
Gen Z is also taking a more structured approach to travel planning. Twenty-six percent prefer a fully planned itinerary, while 34% say they are planning trips earlier than in previous years.
Major cities are the most popular destination type, selected by 39% of travelers, followed by beaches at 27% and small towns at 25%. Mountains, national parks and rural destinations also remain popular.
Labor Day Travel
Hertz booking data points to strong demand heading into Labor Day weekend.
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Sept. 4 is expected to be the busiest vehicle pickup date.
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SUVs and minivans remain the most popular rental categories.
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Orlando, Denver, Los Angeles, Las Vegas and Boston are the top destinations based on demand.
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Seattle moved into the top 10 destinations this year.
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Las Vegas, Sacramento, Philadelphia, Portland, Ore., and San Diego are seeing the strongest demand growth compared with last year's Labor Day period.
For dealers and the broader used-vehicle market, the continued preference for SUVs and minivans during a major travel period also provides another snapshot of consumer demand for larger vehicles heading into the fall.
