How Holiday Travel and Consumer Spending Trends Are Changing Since COVID
Written by The Clearcover Team | 4 minute read
Each year, the holiday season is marked by exciting plans, family travel, vacations, and increased retail shopping for gift exchanges. Retail stores prep for the rush of holiday spending—decking the halls with cheery decorations and playing seasonal music overhead as shoppers work to check items off their gift-giving lists. And traditionally, Americans plan for increased traffic surrounding the holidays, too, including longer airport security lines and prepping vehicles for winter weather road-trip travel.
However, it’s evident that COVID-19 has changed typical travel and consumer spending trends in 2020. And the holiday season is no exception.
We surveyed Americans across the country* about their 2020 holiday travel plans, holiday online shopping, consumer spending trends for the 2020 holiday season, and planned charitable giving. In this article, we’ll share what we discovered—including insightful holiday spending statistics—and dive into how these shared holiday traditions have been impacted by COVID-19 in 2020.
First, let’s dive into traditional travel trends and how they’ve changed.
‘Tis the season for holiday travel: A snapshot of consumer holiday travel habits pre-COVID-19
In years past, the Thanksgiving through New Year’s period was marked by increased travel in the United States. It’s such a part of American holiday tradition that there are entire film plots dedicated to the shared experience of vacationing during the holidays (think Planes, Trains, and Automobiles, Home Alone, and The Holiday).
Therefore, it comes as no surprise that 85% of the Americans we surveyed stated that, before COVID-19, they typically traveled over the holiday season (which, for our survey purposes and throughout this article, we’re defining as Thanksgiving through New Year’s).
Let’s take a closer look at holiday travel trends.
Thanksgiving travel plans of year’s past
Not many can resist enjoying the traditional Thanksgiving meal and tried-and-true family recipes alongside the warm company, even if it requires traveling over the short holiday. Prior to COVID-19, 89% of survey responders traveled for Thanksgiving—with the majority road-tripping it by their vehicle of choice.
Typically, 79% drove, 20% flew, 1% traveled by RV, with 1% using other travel methods.
December through early January holiday travel plans in prior years
Before 2020, 9 out of 10 Americans traveled during December through early January’s holidays. And transportation methods were similar to those who traveled for Thanksgiving: 71% drove, 28% flew, and 1% traveled by RV.
Holiday travel plans have changed after COVID—here’s how
While past holiday seasons were marked by traveling to visit loved ones, COVID-19 has changed everything: 6 out of 10 Americans plan on staying put in 2020. (We did the math: Based on our research results, Americans were 113% more likely to travel for the holidays pre-COVID-19.)
For the 4 out of 10 who are still planning to travel over the 2020 holiday season, here’s what changed.
Most people won’t travel for the holidays in 2020—but the ones who will are staying within driving distance
Out of the 40% of Americans who are continuing to travel during the 2020 holidays, 84% planned to travel over Thanksgiving—as long as it’s within driving distance. However, after doing a follow-up survey after the Thanksgiving holiday, 56% said that they changed their plans to see family/friends and decided not to, with 78% citing spiking COVID-19 numbers as the reason for them changing their travel plans.
Only 14% who planned to travel during Thanksgiving did so by plane—something they were 43% more likely to do before COVID-19.
For those traveling during Thanksgiving in 2020, 82% planned to drive, 14% planned to fly, 3% planned to travel by RV, and 1% had other travel methods planned.
And for those planning to travel during the 2020 holiday season, Prior to Thanksgiving, 86% plan to travel over the 2020 December and January holidays. After Thanksgiving, 58% of our respondents said they were less likely to travel due to the COVID spikes. Only 2 in 10 respondents who are planning trips in December or for New Year’s in 2020 will opt for air travel—which was 40% more likely to be the travel method of choice in 2019.
For those who are traveling during December holidays and for New Year’s 2020, 77% plan to drive, 20% plan to fly, 2% plan to travel by RV, and 1% have other travel plans.
Holiday spending statistics since COVID-19: Most of us are shopping online
While memories of holiday shopping in pre-2020 years recall visions of Black Friday crowds, long mid-December checkout lines, and parking lots full of rushed shoppers, shopping habits overall have changed since COVID-19.
In fact, nearly 9 out of 10 Americans we surveyed agree they have changed their shopping habits since COVID-19, and 84% told us they shop more online now than at in-person retail stores.
Overall, people are shopping in-person significantly less, with 86% going to retail stores less and 76% relying on delivery more frequently.
What percentage of holiday shopping is online?
This sweeping shift to online retail directly affects traditional holiday shopping plans, too.
Out of those surveyed, 8 out of 10 plan on doing more online holiday shopping than at in-store retailers. We also discovered through our research that shoppers were 26% less likely to shop on Black Friday in 2020—with only 37% of those surveyed planning to shop in stores that day—and the likelihood to shop on Cyber Monday hardly changed, showing only a 1% increase.
Let’s take a closer look into holiday consumer spending trends we discovered through our survey.
Seasonal holiday shoppers plan to make a list and check it twice—but significantly earlier
Noticed any shipping delays lately? You’re not alone. We found that 74% of those surveyed have started ordering things with increased advance notice than they did before COVID-19 to allow for possible delays.
In fact, nearly 8 out of 10 respondents plan to start their shopping earlier in 2020 due to COVID-19 (with 2 out of 10 starting before October)—while only 23% will keep their normal shopping routine.
In 2020, 20% of people started their holiday shopping before November 1, compared to only 8% starting before November 1 in 2019.
Here are the most popular reasons for earlier holiday shopping:
75% are concerned about delivery times
50% have extra time at home due to COVID-19 and will spend it organizing and starting holiday shopping
35% have taken advantage of early online promotions (such as Amazon Prime Day) to begin shopping early
Spending less is really popular for the 2020 holiday season
It’s no surprise that most shoppers are trying to spend conservatively during the 2020 holiday season. Truly, 2020 has been a challenging year for all, and many people have felt financial impact in their households.
The majority of the Americans we surveyed (64%) are planning to spend less on individuals during the 2020 holidays as well as less overall on holiday shopping. While economic stability is one contributing factor, social distancing is, too. We found 67% of responders are shopping for fewer people in 2020.
For those spending less in 2020, the reasons included the following:
63% are spending conservatively due to the uncertainty surrounding their economic future.
44% aren’t attending events and parties that they’d normally purchase gifts for
42% aren’t seeing as many friends and family as they normally would, so they’re purchasing fewer gifts
39% have experienced COVID-19-related economic loss and have a lower budget
14% are buying fewer gifts due to lost connections with family and friends due to social distancing
And 9% were laid off or furloughed, and this lowered their budget for holiday spending
But some of us are spending more on the holidays, due to spending less overall in 2020
While overall holiday spending plans have lowered, some households have more funds to put toward holiday gift-giving, due to reduced 2020 spending due to social distancing, stay-at-home orders, and more.
For the 36% of our panelists who plan on spending more during the 2020 holidays, nearly 5 out of 10 admit to doing so because they spent less overall in 2020 and have a higher holiday shopping budget.
Because many traditional holiday gatherings have been canceled, 1/3 of survey responders also plan to reallocate holiday party spending toward individual gifts. Those who are spending more in 2020 plan on spending close to $350 more than they did in 2019, a notable increase in a year with unexpected challenges.
Tis the season of giving—even during a pandemic
Here’s some good news: While holiday consumer spending habits and travel plans have certainly changed in 2020, the spirit of gift-giving has not. Each year, in addition to buying holiday gifts for friends and family, Americans determine how they’ll allocate any year-end charitable giving.
While nearly 6 in 10 aren’t able to increase their charitable giving during the 2020 holiday season due to economic concerns, surprisingly, 41% plan on giving to charitable causes more than they did in 2019.
Even during such an uncertain year, Americans are still making room to connect with loved ones, swap gifts, and charitably give in ways they’re able to—even if it’s on a reduced scale.
No matter how you celebrate the holidays or whether you decide to travel over the holidays or stay put, know that Clearcover is here to protect drivers across the country with reliable, trustworthy car insurance. (And switching to Clearcover could save you money while securing better coverage, making more room for your financial goals and giving you peace of mind in the year to come.)
Discover if Clearcover can provide you more coverage for less money here.
*We polled 653 U.S. residents about their holiday travel plans. The survey was conducted at 95% confidence, with +/- 4% margin of error.
