News Summary
As summer approaches, South Carolina’s lodging market remains strong, with a projected rise in travel activity and a growing interest in short trips. Despite economic pressures and declining consumer confidence, a significant portion of Americans plan vacations, favoring budget accommodations. Hotel companies are responding to changing consumer behaviors by enhancing offers for extended stays and budget options. The state’s tourism industry is gearing up for renewed travel enthusiasm, highlighting a resilient market despite ongoing financial uncertainties.
South Carolina is witnessing a robust lodging market as the summer of 2025 approaches, despite ongoing economic concerns. A 2% tax is applied to all rental accommodations in the state, with revenue collected in the fourth quarter of 2024 being distributed to Upstate communities.
According to data provided by the South Carolina State Library, STR, LLC, and the Colliers | South Carolina Research and Forecast Report for Q3 2024, the resilience of the lodging industry is underscored by a significant rise in travel activity. A record-setting 45.1 million Americans are projected to travel at least 50 miles from home during Memorial Day weekend in May 2025. This figure marks an increase of 1.4 million travelers compared to the previous year.
The trend of prioritizing travel is expected to extend well into the summer 2025 season, as the percentage of Americans planning paid lodging stays increased to 53% this year, up from 48% in 2024, according to a Deloitte survey. Hotel experts anticipate a strong demand for summer travel, despite facing economic challenges, including a year-over-year decline in total spending on lodging with debit and credit cards from January 1 to May 3, 2025.
Consumer confidence has noticeably dropped since the start of 2025. Nevertheless, a report from the Bank of America Institute reveals that 70% of respondents intend to vacation this summer, which is a 3 percentage point increase from the previous year. Average spending on the longest summer trips is projected to be around $3,471 in 2025, reflecting a slight increase compared to 2024.
In a shift towards budget management, many travelers are opting for shorter trips and more affordable accommodations. Notably, there is a rising popularity of “micro-cations,” defined as trips that last four nights or fewer that cover over 100 miles. About 43% of travelers are planning to reduce aerial expenses by taking shorter vacations, primarily due to affordability concerns.
Economic pressures, stemming from a weaker dollar, have notably affected travel preferences, particularly among lower-income households. Interestingly, travelers with an earning capacity exceeding $100,000 are expected to make up nearly half of the summer travelers in 2025. The number of international travelers to the U.S. is projected to decline, leading to an anticipated loss of $12.5 billion in international spending for the country throughout 2025.
In response to these changing consumer behaviors and evolving economic conditions, hotel companies are preparing for an increase in demand driven by over $1 trillion in public and private infrastructure spending. There has been a significant increase in demand for extended-stay and budget hotel brands, aimed at accommodating traveling workers. As a result, hoteliers are adapting by focusing on enhancing accessibility and providing budget options for guests.
As South Carolina’s lodging revenue trends demonstrate, the state’s tourism industry is gearing up for a summer of renewed travel enthusiasm, showcasing a resilient market that holds promise despite the current economic climate. The collective data highlights a shift in consumer behavior, revealing a decisive focus on travel in spite of the financial uncertainties that persist.
Deeper Dive: News & Info About This Topic
- Upstate Business Journal: Accommodations Tax Revenue Distribution
- Wikipedia: Lodging Industry
- Hotel Dive: Summer 2025 Travel Preview
- Google Search: Travel Trends 2025
- Upgraded Points: Airbnb vs Hotel Cost in US Cities
- Encyclopedia Britannica: Hotel
- Business Insider: Price Gouging Complaints Surge
- Google News: Hotel Industry News
