‘Too Many Hours Waiting for Gelato in Capri.’ America’s Affluent Travellers Head Home. - Kanebridge News
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‘Too Many Hours Waiting for Gelato in Capri.’ America’s Affluent Travellers Head Home.

By SHIVANI VORA
Mon, Mar 11, 2024 9:19amGrey Clock 5 min

Affluent U.S. travellers may be sticking closer to home for their big trips this year, travel industry experts say.

Blame it on the soaring cost of travel, unease about the war in the Middle East, or a desire to avoid the headache of sold-out hotels and crowds in popular tourist destinations..Whatever the reason, numerous signs indicate that more Americans with an eye toward luxury travel are opting for domestic vacations this year compared with last, when they ventured abroad in the wake of pent-up demand following the pandemic.

The Arhaus Lounge on courtyard at the White Elephant in Nantucket.
Chi-Thien Nguyen/Elkus Manfredi Architects

Lindsey Ueberroth , the CEO of Preferred Travel Group, comprising more than 1,000 high-end hotels, says that while the group’s international business remains strong, domestic stays have grown so far in 2024, with bookings for the months ahead showing the same rise.

“Airfare is pricey, and some people are avoiding international travel because of the uncertainty in the world,” she says. “As a result, they’re spending their money on pricey resorts in the U.S. instead.”

Ueberroth noted that Brush Creek Ranch in Wyoming’s scenic North Platte River Valley and Montage Kapalua Bay in Maui are two Preferred Travel Group properties that are proving to be top choices among its clientele.

The Harborview room located at the White Elephant in Nantucket.
Chi-Thien Nguyen/Elkus Manfredi Architects

Travel advisors also report a rise in bookings of domestic getaways.

Erica Neher, an advisor with Altour in Paris, is also seeing a renewed interest in domestic getaways from her U.S.-based clients. She says she thinks that the prohibitive cost of top hotels abroad is partially a cause. “I’m hoping the hotel prices start to come down because [uber luxury] travel is becoming unattractive to even those with no or unlimited budget,” she says.

Michael Holtz, the founder and CEO of the global travel firm SmartFlyer, says that its business is up 25% so far this year compared to last.

“Our U.S. bookings are robust. Domestic travel is easier than going abroad, and it can also be less expensive yet more luxurious,” he says.

Holtz cites the all-inclusive Twin Farms in Barnard, Vermont, as an example of a coveted U.S. hotel and says that it’s a scenic resort with great accommodations, cuisine, and service—a place where “the staff accommodates every guest need or want, plus more.” Destination-wise, he says that SmartFlyer’s clients are favouring Hawaii, Jackson Hole, Charleston and Nashville for their stateside forays.

The most significant evidence that affluent travellers have returned to domestic escapes comes from luxury properties themselves, many of which saw a wane or decline in business because their usual guests chose to go abroad as the world opened up from pandemic shutdowns.

Take Post Ranch Inn, a scenic 40-room oceanfront resort in Big Sur, California, where room rates start at US$1,625 a night. Co-owner and managing partner Mike Freed says that occupancy has consistently averaged about 80% a year since the property opened in 1992. Last year was the exception when the number softened.

“There’s no question that many of my regular guests over the years opted for international travel in 2023. Most went to Europe—Italy, France, Spain, and Portugal,” Freed says. “However, they’re back in 2024. Bookings are ahead of last year and already solid for our peak summer season.”

The living room of the Park suite at the White Elephant in Palm Beach.
Chi-Thien Nguyen/Elkus Manfredi Architects

Bill Hayward of Pebble Beach, California, and the president of a lumber company is among the return clientele. He has been staying at Post Ranch Inn since the early ’90s with his wife and says that they usually check in three times annually for between two and three nights each. “Last year, we changed it up by taking several trips to Europe,” he says. “It was catch-up travel after not doing it for so long, but now, we’re back on the Post Ranch Inn bandwagon.”

International air travel can be aggravating, Hayward says, and the couple agreed that it’s more convenient to take a break that’s closer to home.

“We pay around US$7,000 for a three-night stay. It’s cheaper than going to Europe and so much less hassle,” he says, saying the inn is their “happy place.”

Similar to the Big Sur hotel, White Elephant Resorts, inclusive of several properties on Nantucket in Massachusetts and one in Palm Beach, Florida, also saw a dip in demand in 2023, according to president Khaled Hashem . “2022 was a killer year for us with a 20% to 30% increase in business across the resorts, but in 2023, that number stayed flat depending on the property or rose marginally to 3%,” he says. “That is historically low for us as we usually go up between 7% and 8%, even during times of economic distress.”

Fast forward to today, and occupancy is up again at all resorts—Hashem says that the White Elephant in Palm Beach, where nightly room rates average US$1,200, is currently seeing 92% occupancy compared with 78% during the same period last year.

More evidence of this pattern is everywhere.

Brian Honan, the sales and marketing director for Ocean House, set on the water in Watch Hill, Rhode Island, says that currently, confirmed business on the books for the peak months of July and August is almost double what it was last year at this time. And booking pace is up approximately 40% compared to last year. “We are seeing not just increased demand but also that business is being confirmed nearly twice as fast,” Honan says.

At Baccarat New York, demand is growing even further after levelling out in 2023, says director of sales and marketing Rafael Nader. “For 2024, we may be seeing a return to 2022 levels, with our booking pace up nearly 10%,” he says. “This could be tied to a softening of the demand for European destinations, which saw hotel and airfare price points that were tremendously high, even for the luxury traveler.”

Irrespective of prices, Karon Cullen, a marketing consultant who lives in Savannah, says that travelling in America has made her recognise how “varied, beautiful, and rich” the country is. Her domestic trips have also been more enjoyable and leisure-filled. “My husband and I learned our “stay in the U.S.A.” lesson last year after too many hours in the past waiting in lines for gelatos in Capri, museums in Paris, even for the fishmonger at a tiny town in Croatia,” she says.

Cullen and her husband recently stayed in a suite at Ocean House where they savoured long beach walks and has more local escapes in the works for the months ahead.

“The more we travel in the U.S., the more we appreciate the relative ease and diminution of stress,” she says.



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AI-powered travel agents are challenging online booking platforms, but Airbnb’s exclusive listings and direct customer relationships could give it an edge. Its next challenge: turning repeat guests into loyal customers through stronger rewards and innovation.

By David Wainer
Tue, Oct 13, 2026 3 min

AI agents like Muse can already find you the cheapest hotel room in Paris. But they can’t locate a cheaper version of that Catskills cabin you’ve been eyeing, because it might only be available on Airbnb ABNB -1.43%decrease.

Investors should pay attention to that distinction. When Meta Platforms META 3.38%increase launched its Muse agent last month, travel stocks including Booking Holdings BKNG -1.19%decrease, Expedia and Airbnb all fell sharply.

Airbnb, though, has a real chance to emerge as a winner from the upheaval. The catch: Its stock already reflects above-industry growth. To justify its valuation, Airbnb will need to turn repeat customers into loyal ones.

Online travel companies make much of their money by simplifying search and collecting fees on bookings. AI agents threaten that model.

But not all travel marketplaces are equally exposed. Booking and Expedia largely sell hotel rooms that travelers can also book directly or through competing sites. If an agent can find the same room elsewhere, it has little reason to favor either Booking or Expedia.

Booking and Expedia also sell sponsored listings that steer travelers toward particular properties. Wells Fargo estimates those will account for about 8% of Expedia’s revenue and a much higher percentage of profit next year.

Airbnb has more ways to adapt. More than half its listings are available only on its platform, and more than 90% of its traffic comes directly to its app or website.

The customer relationship doesn’t end after booking, either. Bernstein analyst Richard Clarke notes that 90% of Airbnb guests go on to message their hosts about arrival times, keys or local taxes, giving Airbnb a connection to both sides of the transaction.

How the companies have responded to the possible agentic future is telling.

Expedia quickly signed on as a Muse partner. Airbnb hasn’t, and Chief Executive Brian Chesky says AI chatbots have so far been a boon, sending customers to Airbnb’s website.

Chatbots might work for buying paper towels, he quipped at a Skift conference last month, but people enjoy planning trips. He argued that browsing dozens of homes isn’t something a text-based chatbot is well suited for.

Still, the AI jitters arrived just as Airbnb was persuading investors it deserved its pricey multiple. For years after its 2020 initial public offering, the stock—which trades around 25 to 30 times forward earnings—went nowhere. Investors saw a mature operator trading at a growth premium.

This year, Airbnb growth seems to be accelerating. The stock jumped in August after the company raised its full-year revenue-growth guidance with its second-quarter results. Wells Fargo analyst Ken Gawrelski credits a run of product improvements under a revamped leadership team.

Among the changes: letting guests reserve now and pay later, adding hotels, and a redesigned home page and app. Investors were also betting on what comes next, including thousands more hotels, car rentals and, eventually, advertising.

The irony is that some of those growth drivers push Airbnb closer to the kind of business Booking and Expedia run—the kind of business AI agents could threaten. Even if AI agents capture a large share of travel planning and booking, Airbnb would capture the demand. But it and others would slowly lose control over how customers find and choose properties.

That would undermine the advertising opportunity investors are counting on. The bigger point for Airbnb and other marketplaces is that losing control of customer acquisition could mean surrendering some of their pricing power and margins.

To bulletproof itself, Airbnb might look to another e-commerce giant that has so far kept AI agents at arm’s length: Amazon.

Like Amazon, Airbnb has a loyal customer base and hard-to-match supply. But it has nothing like Prime membership to make customers think twice before taking their business elsewhere.

That is where loyalty comes in. Business travelers stick with Hilton or Marriott because enough nights earn them perks. Leisure travelers rarely accumulate stays with one chain. Airbnb has millions of listings and plenty of repeat customers, but no broad rewards program. It has begun experimenting with credits on hotel stays, but it should make loyalty a priority, not just a promotion.

Airbnb also plans to launch its own AI agent next year. But travelers using an agent might still want it to search Airbnb, Vrbo, Booking and hotel websites alike, rather than limit itself to one company’s inventory.

Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski. Such deals, along with rewards for loyal guests, could over the long term eat into the company’s roughly 13% take rate, he adds. But if they bring in enough additional bookings, the trade-off could be worthwhile.

History offers a reason not to panic. The shift from desktop to mobile unsettled investors in Alphabet and Amazon, but both emerged as major beneficiaries. Companies with valuable assets can come out of a platform shift stronger, if they adapt quickly enough.

Airbnb has homes the bots can’t easily replace. Now it needs to give guests a reason to insist on booking them there.