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FMI Analysts view: Which are the best staycation spots in 2023?

Milos island, Greece

As per newly released data by Future Market Insights, the staycation market is estimated at US$ 338.3 million in 2022 and is projected to reach US$ 758.1 million by 2033, at a CAGR of 8% from 2023 to 2033.

As per the latest findings of Future Market Insights, global staycation market revenue is expected to be US$ 363.6 Million by the end of 2023. In the long-term, the staycation market is estimated to reach at around US$ 758.1 Million in 2033.

2018 to 2022 Staycation Market Outlook Compared to 2023 to 2033 Forecast

As per newly released data by Future Market Insights, the staycation market is estimated at US$ 338.3 million in 2022 and is projected to reach US$ 758.1 million by 2033, at a CAGR of 8% from 2023 to 2033.

Vacation can be defined as a period in which one takes a break from their daily routine and engages themselves in activities of their interest that provide them some pleasure, such as resting, recreation, and travelling or holidaying among many other activities. The world is slowly adjusting to the aftermath of covid-19 and there is still a lot of uncertainty pertaining to international travel which has led to an influx of search volumes for staycations. Staycation is a holiday which is spent in one’s home country or around one’s hometown instead of travelling abroad. It has slowly become the biggest holiday trend.

The staycation concept was globally recognized during the financial crisis that hit the US during the period 2007–2010. It was carried forward by the UK and many western European countries that also got hit by the financial crisis. The concept quickly became even more popular when the pandemic led the world to cancel vacations, reunions, business trips etc. The idea of a safe, comfortable and affordable trip to enjoy scenic views was the perfect one.

Core activities of a staycation are usually the use of a backyard pool, visits to any local parks or museums, and participation in local festivals, carnivals, and amusement parks. To make full use of staycations and not to spoil the vacation there are some set rules that vacationers need to follow. This includes setting a time frame, planning, and scheduling staycations in advance, and evading routine, with the aim of building a sense of a traditional holiday. Key countries that practice staycations are the USA, the United Kingdom, India, United Arab Emirates(UAE), Thailand, Singapore, Germany, and France, among others.

People have Started to Look for Value for Money Holidays Post Covid-19

The Pandemic forced a lot of lifestyle changes upon everybody which continue to influence consumer decisions even today. It has been found that people are now willing to spend less than they did prior to the pandemic. They are looking to find more value for money while planning their vacations. Consequently, a large number of people are preferring to spend their holidays within their country than going on international trips.

Hybrid Work Models have led to a Boom in Staycations

Many organizations are rethinking their approach to the workplace after the pandemic and the hybrid work model has gained a lot of traction. This model allows the employees to make the best use of time without being restricted to their office desks thereby guaranteeing a better work life balance.

This has enabled the people to work from anywhere and hence, ‘working with a view’ has now become the new trend. Staycations are best for people who want a change in their environment without having to take any days off from work.

Factor Affecting Staycation Market Adversely

Insufficient or No Vacationing Places in the Localities of Some Regions
One of the major limitations in the Staycation market is the insufficient tourist spots in various localities. Due to this, there is no holiday feeling as people often have to be in the same environment that they wanted to escape from.

Another reason for dissatisfaction on staycations can be getting official work calls since people have not left their hometowns and are therefore considered available for any work that might come up.

Best Staycation spots: Region Wise Insights

United Kingdom
From research, it seems people want to visit more rural, scenic locations which shows a shift in staycation priorities away from urban areas and into natural beauty spots. According to a survey, Cornwall and Devon were the most in-demand staycation spots of summer 2021, and in 2022, Devon lost its title to more northern competitors such as Yorkshire and Lancashire.

United States of America
Cities like Atlanta, Chicago, Seattle, Portland, Tampa, among others are the most popular staycation destinations in the USA. With sandy beaches, various cuisines and coffee shops, and numerous budget friendly activities, staycations here have become the perfect way to take some time off from the hustle and bustle of normal life

People in India look forward to staycations as a way to spend more time with nature and usually choose mountains to reconnect and rejuvenate. Places like Kasol, Manali, Shimla are always packed on the weekends with everyone wanting to spend a few days in the hills.

Positano in Italy, Isle of Skye in Scotland, Lindau in Germany, Milos in Greece, among others are leisurely destinations to enjoy geothermal spas along with wine and food regions. One can indulge in relaxation while also absorbing the local culture of that place

Category-Wise Insights

Millennials are the Major Drivers of Staycation Demand
People between the age group of 25 to 34 are most likely to choose staycation as their main holiday. New research showed that 70% of the people wanted a ‘digital detox’ and an overwhelming majority of 91% cited ‘escapism’ as their main reason for a staycation. This might be due to increased stress levels in their work and personal lives which further gives rise to the need for a change of environment.

There will be a Surge in the Number of Independent Travellers

Rapid technological advancements in the last few years have made a large number of people quite comfortable with emerging technologies and they are now well equipped to adapt to change. Consequently, this has led to an increase in the number of independent travelers and is forecasted to only increase further.

Online Booking Channels Lead the Booking Channel Segmentation

Tourists enjoy taking holidays, but for many, planning the trip is also a big part of that enjoyment. It usually takes a lot of time and effort to research and make a decision before purchasing travel tickets, accommodations, tours, or any other supplementary services or modes of transportation. However, the existence of online travel agencies has unquestionably both sped up the procedure and offered clients access to more choices.

People who book their vacations online prefer to compare travel on booking portals and hotel websites. Offline, however, arranging a trip is carried out with the aid of a travel company or a tour operator. The “Hashtag Generation,” which includes Millennials and Generation Z, is more likely to try new things and seek out new experiences.

Competitive Landscape

  • Cancellation policies are the most important factor when choosing a holiday company to book with. Therefore, companies having good reviews are overtaken by those having cancellation policies giving the latter a competitive advantage.
  • Leading travel agencies like Agoda, AirBnb.com, TripAdvisor, and booking.com have also managed to gain a major market share by making it convenient for the travelers to safely book at the best prices.

These insights are based on a report on Staycation Market by Future Market Insights.

Co-Founder & Chief Editor - TravelDailyNews Media Network | Website | + Posts

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.