.svg)
In December 2023, Placer.ai released two white papers: How Physical Stores Help DNBs Thrive and East Coast Migration Hubs. Below is a taste of our findings. To read more data-driven consumer research, visit our library.
DNBs – Digitally Native Brands – refer to retailers that began their retail journey exclusively online, selling their product line direct-to-consumers through their owned digital channel. But although all these businesses start out as a pure e-commerce play, many DNBs eventually move offline, choosing to leverage the various benefits of brick-and-mortar channels to grow their business even further.
Analyzing year-over-year (YoY) data for Q3 2023 shows that, while many retailers struggled, DNB leaders such as Vuori, Allbirds, Everlane, and Warby Parker all saw significant growth in quarterly visits per venue. Many of these brands also underwent significant expansions, but the increase in visits per venue reveals that many of the DNBs are seeing more crowded stores despite the increase in number of overall venues. The success of these brands in operating stores that consumers want to keep visiting – even in times of economic headwinds – suggests that DNBs are particularly well positioned to take advantage of the diverse benefits of offline stores.
How Physical Stores Help DNBs Thrive uses location intelligence to reveal the different brick-and-mortar strategies helping DNBs broaden their reach, build their brand, and acquire new audiences. Several DNBs are building massive store fleets, while others focus on a couple well-placed stores – and some focus on temporary pop-ups to reap the benefits of physical stores without the long-term commitment.
Read the full report here to discover the diverse methods that digitally native brands are enlisting to to drive growth through brick-and-mortar expansion.
Much has been written about the recent population outflows from New York, Massachusetts, and other northeastern states. But many states on the East Coast – including Maine, Vermont, Rhode Island, Delaware, North and South Carolina, and Florida – are actually seeing influxes of newcomers.
Each of these states – and each of the metropolitan areas attracting relocators within them – offers its own set of benefits. But those willing to make the move often fit a similar profile – younger individuals or families looking for a more favorable housing market, better schools, or more job opportunities.
East Coast Migration Hubs looks at several states and metro areas on the East Coast to explore the factors driving migration to these emerging hubs. Using location data to understand who is moving, and harnessing Niche’s Neighborhood Grades dataset to identify differences between origin and destination areas, the report seeks to shed light on recent domestic migration trends in the Eastern United States.
Read the full report here to discover the factors driving domestic migration to several popular relocation destinations on the East Coast.
For more data-driven consumer research, visit our library.
Last year was marked by inflation and consumer cutbacks as shoppers adjusted to price hikes across key retail and dining categories. But despite the challenges, many categories and retailers not only weathered the storm but positively thrived under the ongoing headwinds.
Now, with a new year offering fresh opportunities for growth, what are the retail and dining segments positioned for success in 2024? We dove into the data to find out.
Last year’s high grocery prices led to a surge in foot traffic to affordable supermarket chains – but food-away-from-home inflation also seems to have driven visits to high-end grocers. Visits to chains such as New York-based Uncle Giuseppe’s, Illinois-based Cermak Fresh Market, and California-based Lazy Acres saw consistent year-over-year (YoY) visit increases as consumers sought specialty ingredients to recreate restaurant-quality dishes at home. Rising interest in sustainability, natural products, and organic ingredients – especially among Gen-Z – likely helped drive traffic growth as well.
But the success of specialty grocers isn’t just coming from singles willing to splurge on the latest influencer-backed food trend – trade area demographic data reveals that families with children are overrepresented in the captured market trade area of all three specialty grocers analyzed. With restaurant prices likely increasing slightly in 2024, consumers looking to feed their families tasty dishes without breaking the bank – or shoppers feeding the growing demand for natural food products – will likely keep visits to specialty grocers high in the coming year.
.avif)
Along with the rise in specialty grocers selling natural and organic ingredients, restaurants focusing on whole, healthy foods are also seeing a boost – and the segment is positioned for further growth in 2024. Consumers are flocking to concepts such as Mendocino Farms, honeygrow, and Crisp & Green that boast fresh ingredients and made-from-scratch dishes – and these chains are all expanding to meet the growing demand.
Visits to healthy dining concepts are no longer reserved for special occasions – weekday foot traffic is also on the rise, with all three dining brands analyzed seeing a YoY rise in the share of Monday to Friday visits. With employees slowly but surely returning to the office and looking to grab a nutritious lunch mid-day or meet up with friends for a balanced dinner on their way home, demand for health-focused dining concepts is likely to continue growing in 2024.
Dave’s Hot Chicken was one of 2023’s biggest dining success stories, and the chain was not the only fried chicken franchise attracting significant foot traffic. Raising Cane’s, which has been on a roll for several years, and Huey Magoo’s Chicken Tenders – which serves grilled chicken and other fare alongside its signature fried tenders – are also taking the country by storm.
Foot traffic to the chains surged in 2023, driven in part by aggressive expansions. But zooming into November 2023 data reveals that average visits per venue are also up YoY, despite all three brands’ much larger store fleets – indicating that the fried chicken boom is meeting a ready demand. It seems, then, that while some diners will favor healthy foods in the new year, other consumers are likely to continue driving visits to fried chicken chains in 2024.
.avif)
Fried chicken isn’t the only indulgence positioned to thrive in 2024. Other affordable luxuries raked in visits last year and are likely to continue seeing growth in the year ahead.
Although inflation appears to be cooling, prices across many goods and services still remain elevated, with some shoppers still putting off large purchases. But consumers are willing to splurge on small treats that won’t break the bank, and tasty snacks and food items – from craft doughnuts to gourmet deli sandwiches to specialty coffee concoctions – could provide the perfect affordable and guilt-free pick-me-up. Parlor Doughnuts, Pickleman’s Gourmet Cafe, and Dutch Bros. Coffee are some of the chains that benefited from this trend in 2023 and will likely continue to grow in the new year.
The trade areas of the three chains analyzed all include a larger-than-average share of “non-family households” – people living with unrelated individuals. As high housing costs continue to lead more U.S. adults to live with roommates, the number of consumers looking to escape their daily grind with an affordable indulgence is likely to increase in 2024 – and drive even larger visit surges to chains offering budget-friendly treats.
.avif)
Non-comestible affordable indulgence such as tanning salons, hair-removal parlors, and eyelash salons are also seeing a rise in visits that will likely continue in the coming year. Deka Lash, Tan Republic, Glo Tanning, and LaserAway are some of the chains that saw their YoY visits increase significantly in 2023, and the growth does not appear to be slowing down.
All four chains’ trade areas included a larger share of Gen-Z visitors (aged 18-24) than the share of 18-24 year olds nationwide. And since, despite inflation, younger shoppers tend to spend more than the average American on beauty and self care – and Gen Z’s spending power is only expected to grow in the coming year – personal grooming chains are well positioned to succeed even further in 2024.
.avif)
Another personal care-adjacent segment slated for growth in 2024 is themed fitness. Gyms and studios that focus on a particular type of activity or fitness regimen – such as climbing, yoga, pilates, or HIIT are seeing their visits skyrocket, with both the number of monthly visits and the average visit frequency on the rise YoY.
The rising popularity of themed fitness concepts may be aided by the sense of community fostered by many of these chains. Touchstone Climbing organizes meetup groups geared towards specific audiences, while F45 Training prides itself on facilitating a sense of purpose and belonging among its members. And yoga and pilates classes have long been recognized for their capacity for connection-building.
With loneliness on the rise and many consumers looking to incorporate a fun, social element into their fitness routines, the demand for themed fitness concepts will likely keep on growing in 2024.
.avif)
Cost-effectiveness does not necessarily mean cheap. And while some retail segments to watch in 2024 stand out for their low price points, other segments that offer consumers a particularly strong value proposition also appear well positioned to thrive in the coming year. Chains such as Theory, Anthropologie, and Marine Layer all saw YoY increases in monthly visits every month of 2023, perhaps aided by the “quiet luxury” trend that drove demand for high-quality, non-ostentatious fashion. And while these brands may not offer the cheapest price, the focus on good craftsmanship and premium fabrics may help consumers feel better about shelling out a little more for each item.
All three brands analyzed have a significant presence in California. Diving into their captured market in the Golden State reveals that visitors to these upscale apparel retailers tend to be wealthier and are more likely to live alone when compared to the average California resident. So even as many companies look to cater to the increasing share of budget-conscious consumers, other retailers willing to invest in quality materials and offer a premium customer experience can still thrive in 2024 by meeting the needs of more affluent audiences.
.avif)
From healthy foods to fried fare, and from affordable treats to higher-priced apparel, the diversity of retail and dining segments to watch in 2024 highlights the many opportunities for success in the coming year. Where will visits skyrocket? Which brands will hit it out of the park?
Visit placer.ai/blog to find out.
Streets adorned in holiday lights, bustling Christmas stores and pop-ups, and local festivals all make the holiday season a truly magical time of year. So with Christmas in the rearview mirror, we dug into the data to explore some of the most beloved holiday spots throughout the country. Who visits Christmas stores? How do holiday events affect foot traffic to local hangouts? And what impact do annual parades have on major retail corridors like Chicago’s Mag Mile?
We dove into the data to find out.
Bronner’s Christmas Wonderland in Frankenmuth, MI is the biggest Christmas store in the country – nay, the world. Spanning some 27 acres, the store carries everything from personalized holiday ornaments to Christmas trees. And the venue, which is open 361 days a year, has emerged as a true destination, where visitors can enjoy a taste of the holiday spirit and load up on all their Christmas essentials.
People visit Bronner’s all year round – but foot traffic to the store really picks up during the holiday season: Between November 1st and December 21st, 2023, the holiday wonderland drew a stunning 438.0% more daily visits, on average, than it did between January and October of this year.
Drilling down deeper into the data shows that much of this visit bump is driven by locals, who flock to Bronner’s during the Christmas season. Throughout the year, Bronner’s draws tourists from all over the country – and in the summer, most visits to the shop are by shoppers living more than 100 miles away. Individuals living within 100 miles of Bronner’s tend to visit closer to Christmas, when the time comes to stock up on supplies for the holiday. And as the holiday approaches, the share of true locals in Bronner’s visitor base – i.e. those living less than 50 miles away from the store – increases significantly.
As the Yuletide season kicks into gear, special holiday-themed pop-ups and happenings also spring up throughout the country, with bars, malls, and restaurants all hosting special events filled with holiday cheer.
One venue that goes all out for the holidays is Mozart’s Coffee Roasters, the lakeside Austin, TX coffee shop that’s been a local landmark since 1993. With free wifi, expansive seating, and bottomless coffee, Mozart’s is the perfect place for remote employees to get some work done. And with hundreds of artists performing at the venue each year and a weekly open mic night, it’s also a great place to go out in the evenings. In the run-up to Christmas, Mozart’s hosts its famed annual holiday lights show, replete with a Bavarian Marketplace, a silent disco, and this year, an actual piece of Taylor Swift’s dance floor.
During the light show, Mozart’s is positively teeming with customers: Since the start of the event this year (November 9th), the coffee shop drew 104.3% more daily visitors, on average, than it did between January 7th (the end of last year’s show) and November 8th, 2023. And unsurprisingly, foot traffic data shows that most of this visit bump is driven by evening customers: During most of the year, the majority of visits to Mozart’s take place before 6:00 PM, with 24.4% concentrated in the morning hours. But when the festival kicks off, this pattern reverses – with 66.7% of visits taking place between 6:00 PM and midnight.
Local parades and festivals are another mainstay of the holiday season. From New York’s iconic Macy’s Thanksgiving Day Parade to the Hollywood Christmas Parade in Los Angeles, cities across America draw massive crowds to streets decked out with holiday cheer.
One of the nation’s most timeless Christmas celebrations is Chicago’s Wintrust Magnificent Mile Lights Festival – an all-day bonanza that features a slew of booths and activities, a televised parade, and an impressive fireworks display. The festival, which famously illuminates the city with a million lights, is one of the Mag Mile’s prime events of the year. And comparing November 18th, 2023 foot traffic to the popular Chicago retail corridor – the day of the big event – to a September 1st 2023 baseline, shows that the festivities generated a tremendous 179.5% visit spike.
And a look at the demographic characteristics of visitors to the Mag Mile during the Lights Festival reveals that the celebration draws a more economically diverse crowd, as well as a larger share of families with children. Throughout most of this year, the median household income (HHI) of the Magnificent Mile’s captured market was relatively high – $85.4K. At the same time, the share of parental households in the retail corridor’s captured market increased from 21.0% to 23.4%, highlighting the event’s special appeal for families.
Everybody needs some seasonal cheer – and the sheer variety of holiday-themed events and festivals means there’s something for everybody. How will Christmas stores fare as the retail environment continues to evolve? And how will shifting urban landscapes impact local events, parades, and festivals in the years to come?
Follow Placer.ai’s data-driven retail and civic analyses to find out.
College students make up a small percentage of the overall U.S. population. But they often have money to spend – and back-to-college shopping is a significant driver of retail sales. This year in particular, students heading back to school were expected to spend record amounts on dorm decor, clothing, and other campus essentials. And since today’s college students make up a large chunk of tomorrow’s affluent consumers, retailers across industries are eager to cement positive relationships with the segment.
So with fall semester just under way, we dove into the data to explore the spending habits of today’s undergraduate young adults. When do they shop? What do they like to buy? And what can retailers do to get their attention?
To get a sense of when collegians tend to do the most shopping, we analyzed the monthly share of college students in the captured markets of select retailers and segments, using audience segmentation data from Spatial.ai’s PersonaLive. And the analysis revealed that student consumer behavior follows a clear seasonal pattern.
In 2019, the share of college students in the captured markets of big box superstores like Target and Walmart peaked in August, and to a lesser extent in June, July, and September, as collegians enjoyed their summer vacations and did their back-to-school shopping. Additional upticks emerged in January, when many students were on winter break. But during regular school months, when midterms, finals, and homework likely kept many students hunkered down in the library, their share in the chains’ captured markets was much lower. While this pattern was disrupted in the wake of COVID, it returned in full force in 2022. Similar seasonality arose when looking at wider segments like apparel and off-price retail, as well as various dining categories.
In addition to seasonality, the above graphs also appear to indicate that despite their tight budgets, collegians don’t necessarily prioritize price over everything else. So to further explore the shopping preferences of college kids, we examined the share of the #College segment in the captured markets of popular chains across categories.
Trade area data seems to indicate that university students shop at Target, frequent non-off-price-apparel chains, eat at fast-casual restaurants – and make up smaller shares of the customer bases of less expensive alternatives. Indeed, as hard-up as they may be, undergrads know how to splurge and are willing to pay for high quality stuff. They can’t get enough Urban Outfitters and love mid to higher range brands like Madewell and lululemon athletica.
At the same time, college students are highly oriented to thrift shops – especially those like Buffalo Exchange and Plato’s Closet, where they can sell their old clothes and snag stylish, name-brand items for a steal.
Of course, the share of collegians in the captured market of any given retailer or segment can also be impacted by the behavior of other demographics. For example, if a particular chain attracts an extremely broad audience, a lower relative share of college students may indicate that their presence is being offset by other segments. Still, while a small share of collegians in a chain’s trade area may not necessarily mean that the chain does not appeal to this group, a disproportionate share of students in a chain’s captured market is a strong indication that the brand is embraced by this demographic.
And chains which see a smaller share of college students among their customer base may draw an outsize proportion of undergrads during peak season. Walmart’s captured market, for example, was just 14.0% over-indexed for the #College segment between September 2022 and August 2023, compared to a nationwide baseline. But looking just at August 2023 – peak college Back to School shopping season – the share of #College students in its captured market was 94.0% higher than the nationwide average. Walmart also enjoyed higher-than-average shares of collegians in September, June, July, January, and to a lesser extent – October. Dollar Tree, too, attracted an outsize share of collegians in the summer and in January.
Collegian shopping habits are shaped by the rhythms of campus life. And while students are budget-conscious, they place a high premium on quality and are willing to spend money on things that are important to them. Brands that can lean into college students’ seasonal groove – while providing the products they crave at price points that don’t break the bank – will be poised to win over this demographic, gaining customers that may stay with them for life.
How will college spending habits continue to evolve as the school year progresses? Which brands will stand out as collegian favorites?
Follow Placer.ai’s data-driven insights to find out.
Marriott International, Inc. has long been a dominant player on the U.S. hospitality scene. The company boasts a wide-ranging portfolio of some 31 brands, running the gamut from luxury chains like The Ritz Carlton to more budget-friendly options like Courtyard by Marriott. And with more than 8,500 locations worldwide, including some 5,700 in the U.S., the hotel giant is continuing to expand its footprint.
Against this backdrop, Marriott International’s decision last May to launch the hospitality industry’s first media network – leveraging visitor data to let external brands advertise to its customers – should come as no surprise. With millions of customers passing through its doors each year, Marriott is particularly well-placed to help relevant advertising partners reach new audiences. The network, powered by Yahoo, offers both online and offline marketing opportunities, including in-room television and digital-screen promotions.
To better understand the potential reach of Marriott’s advertising network, we dove into the data to explore the characteristics and preferences of the people that visit the hospitality leader’s various brands and locations. By layering foot traffic data with demographic and psychographic metrics from STI: Popstats, AGS Behavior & Attitudes, and Experian’s Mosaic, we examined Marriott’s different captured markets, gaining insight into the habits, interests, and profiles of its customer bases.
*A chain or venue’s captured market refers to the population residing in its trade area, weighted to reflect the actual share of visits from each Census Block Group comprising the trade area.
Marriott’s brands are divided into three tiers: Luxury, Premium, and Select. And with something for everyone, the company’s customer base encompasses a wide swath of society – from budget-conscious families looking for inexpensive accommodations, to affluent singles on the hunt for high-end, luxury getaways. Marriott also runs several extended-stay venues, including Residence Inn and TownePlace Suites.
A look at the profiles of visitors to four different Marriott chains shows that, as expected, wealthier patrons tend to frequent the company’s luxury hotels, while less affluent customers tend to visit its more budget-oriented Select brands. But even the company’s less pricey offerings – such as Four Points by Sheraton (acquired by Marriott in 2016) – attract consumers from relatively affluent areas. And certain Select tier destinations, like Marriott’s Millennial and GenZ-oriented Moxy Hotels, draw higher-HHI travelers than some Premium brands.
The household compositions and consumer preferences of visitors to Marriott’s various brands also differ. Four Points stands out as a prime destination for families with children, as well as older couples – while Moxy attracts an outsize share of “Young City Solos.” Moxy and Ritz Carlton guests are more likely to be museum goers and use ride share apps like Lyft and Uber. And visitors to Four Points and Westin locations are more apt to be into DIY home improvement.
One Marriott chain that has been doing particularly well in recent months is Moxy Hotels, a brand squarely targeted at the “young at heart.” Positioned as an experiential destination – a place to play, and not just stay – Moxy Hotels’ website exudes youthfulness, inviting travelers to “PLAY ON #ATTHEMOXY,” and touting the chain’s fun communal spaces. The rooms are relatively compact and affordable, and at some locations, guests can check in at the bar and claim a complimentary cocktail.
And the chain, which boasts some 120 properties across 23 countries (including more than 30 in the U.S.), experienced positive year-over-year (YoY) visit growth throughout H1 2023. While some of this growth is undoubtedly due to the chain’s continued expansion, the average number of visits to each Moxy Hotel also increased. The consumer quest for fun experiences, which has propelled experiential models in retail and dining, appears to be leaving its mark on the hotel industry as well.
Moxy Hotel’s highly targeted experiential vibe may make it particularly attractive for advertisers interested in reaching younger consumers. But while Moxy targets a pretty specific demographic, the profile of its customers is far from uniform. Visitors to Moxy’s New Orleans Hotel, for example, are more likely to have a lower HHI and to include families with children than visitors to its Washington, D.C. and East Village (New York) venues. And while more than 60.0% of visitors to the East Village Moxy in H1 2023 were locals hailing from less than 30 miles away, 81.5% of visitors to the New Orleans Moxy came from further away.
Buoyed by a post-COVID travel boom that has seen people flocking back to hotels and airlines, Marriott International – along with its media network – appears poised for further growth. While the network will undoubtedly harness Marriott’s own first-party data, including from its Bonvoy loyalty program, location intelligence can offer additional layers of insight into the actual audiences it is likely to reach.
For more data-driven foot traffic insights, visit Placer.ai.
Although many dining chains have been challenged by recent economic headwinds, others are finding success. Adding itself to the list of restaurant winners in 2023 is CAVA – a growing Mediterranean fast-casual chain that recently filed for an initial public offering (IPO). We dove into the location analytics for CAVA to take a closer look at how the company is thriving in a turbulent economic climate and what lies ahead for the chain in its next chapter.
CAVA has shown a remarkable ability to drive foot traffic over the past couple of years. Since 2019, CAVA’s baseline visit growth has outperformed the fast-casual restaurant space nearly every month – with visits really taking off in 2021. The brand has been able to capitalize on growing suburban markets – accounting for 80% of locations – which may be contributing to the chain’s visit growth.
Visits to CAVA have skyrocketed. And like other fast-casual success stories, CAVA has embraced drive-thrus and invested in a streamlined in-store experience, both of which are likely contributing to at least some of the brand’s recent strength.
In addition to impressive visit growth, CAVA recorded a 12.8% revenue increase in 2022 compared to 2021 – no small feat considering the impact of inflation on overall restaurant traffic.
Zooming into visits per venue showcases CAVA’s strength even more clearly. CAVA’s visits-per-venue seem to follow industry trends – as overall fast-casual visits-per-venue fell year-over-year (YoY) between January and April 2023, CAVA’s visit-per-venue growth slowed as well. But although the direction was similar, the actual performance differed substantially, with the company significantly outperforming the wider fast-casual category.
CAVA’s YoY monthly visits per venue have been up since January 2023 – a particularly impressive feat in light of the chain’s continued expansion, and an indication that new locations are driving traffic despite the current economic environment. So, while CAVA appears to be affected by broader restaurant trends, the brand remains far ahead of the fast-casual dining space.
CAVA’s bold brick-and-mortar strategy is part of the reason why it has been able to get ahead of the pack in the fast-casual category. The company acquired Zoës Kitchen in 2018 and has since rebranded almost all Zoës Kitchen locations as CAVA restaurants. Such a strategy is relatively rare in the restaurant industry, but location analytics show that the move has paid off.
Since Q1 2021, CAVA’s YoY visits per venue have consistently outperformed visits-per-venue at the remaining Zoës Kitchen locations. This not only validates CAVA’s decision to phase out the Zoës Kitchen brand but also suggests that CAVA resonates with Zoës Kitchen diners who continue to visit a location when it becomes a CAVA restaurant.
CAVA’s IPO announcement is a welcome next step for one of the fastest-growing fast-casual chains. With a focused expansion strategy and an eye on growing markets, there may be no telling how far the company can go.
For updates and more data-driven foot traffic insights, visit Placer.ai.
The first Lollapalooza – a four-day music festival – took place in 1991. Chicago’s Grant Park became the event’s permanent home (at least in the United States) in 2005, drawing thousands of revelers and music fans to the park each year.
This year, the festival once again demonstrated its powerful impact on the city. On August 1st, 2024, visits to Grant Park surged by 1,313.2% relative to the YTD daily average, as crowds converged on the park to see Chappell Roan’s much-anticipated performance. And during the first three days of the event, the event drew significantly more foot traffic than in 2023 – with visits up 18.9% to 35.9% compared to the first three days of last year’s festival (August 3rd to 5th, 2023).
Lollapalooza led to a dramatic spike in visits to Grant Park – and it also attracted a different type of visitor compared to the rest of the year.
Analyzing Grant Park’s captured market with Spatial.ai’s PersonaLive dataset reveals that Lollapalooza attendees are more likely to belong to the “Young Professionals” and “Ultra Wealthy Families” segment groups than the typical Grant Park visitor.
By contrast, the “Near-Urban Diverse Families” segment group, comprising middle-class diverse families living in or near cities, made up only 6.5% of visitors during the festival, compared to 12.0% during the rest of the year.
Additionally, visitors during Lollapalooza came from areas with higher HHIs than both the nationwide baseline of $76.1K and the average for park visitors throughout the year. Understanding the demographic profile of visitors to the park during Lollapalooza can help planners and city officials tailor future events to these segment groups – or look for ways to make the festival accessible to a wider range of music lovers.
Lollapalooza’s impact on Chicago extended beyond the boundaries of Grant Park, with nearby hotels seeing remarkable surges in foot traffic. The Congress Plaza Hotel on South Michigan Avenue witnessed a staggering 249.1% rise in visits during the week of July 29, 2024, compared to the YTD visit average. And Travelodge on East Harrison Street saw an impressive 181.8% increase. These spikes reflect the festival’s draw not just for locals but for out-of-town visitors who fill hotels across the city.
The North Michigan Avenue retail corridor also enjoyed a significant increase in foot traffic during the festival, with visits on Thursday, August 1st 56.0% higher than the YTD Thursday visit average. On Friday, August 2nd, visits to the corridor were 55.7% higher than the Friday visit average. These numbers highlight Lollapalooza’s role in driving economic activity across Chicago, as festival-goers venture beyond the park to explore the city’s vibrant retail and hospitality offerings.
City parks often serve as community hubs, and Flushing Meadows Corona Park in Queens, NY, has been a major gathering point for New Yorkers. The park hosted one of New York’s most beloved summer concerts – Governors Ball – which moved from Governors Island to Flushing Meadows in 2023.
During the festival (June 9th -11th, 2024), musicians like Post Malone and The Killers drew massive crowds to the park, with visits soaring to the highest levels seen all year. On June 9th, the opening day of the festival, foot traffic in the park was up 214.8% compared to the YTD daily average, and at its height, on June 8th, the festival drew 392.7% more visits than the YTD average.
The park also hosted other big events this summer – a July 21st set by DMC helped boost visits to 185.1% above the YTD average. And the Hong Kong Dragon Boat Festival on August 3rd and 4th led to major visit boosts of 221.4% and 51.6%, respectively.
These events not only draw large crowds, but also highlight the park’s role as a space where cultural and civic life can find expression, flourish, and contribute to the health of local communities.
Analyzing changes in Flushing Meadows Corona Park’s trade area size offers insight into how far people are willing to travel for these events. During Governors Ball, for example, the park’s trade area ballooned to 254.5 square miles, showing the festival's wide appeal. On July 20th, by contrast, when the park hosted several local bands and DJs, the trade area was a much more modest 57.0 square miles.
Summer events drive community engagement, economic activity, and civic pride. Cities that invest in their parks and event hubs, fostering lively and inclusive spaces, can create lasting value for both residents and visitors, enriching the cultural and social life of urban areas.
For more data-driven civic stories, visit Placer.ai.
The pandemic and economic headwinds that marked the past few years presented the multi-billion dollar hotel industry with significant challenges. But five years later, the industry is rallying – and some hotel segments are showing significant growth.
This white paper delves into location analytics across six major hotel categories – Luxury Hotels, Upper Upscale Hotels, Upscale Hotels, Upper Midscale Hotels, Midscale Hotels, and Economy Hotels – to explore the current state of the American hospitality market. The report examines changes in guest behavior, personas, and characteristics and looks at factors driving current visitation trends.
Overall, visits to hotels were 4.3% lower in Q2 2024 than in Q2 2019 (pre-pandemic). But this metric only tells part of the story. A deeper dive into the data shows that each hotel tier has been on a more nuanced recovery trajectory.
Economy chains – those offering the most basic accommodations at the lowest prices – saw visits down 24.6% in Q2 2024 compared to pre-pandemic – likely due in part to hotel closures that have plagued the tier in recent years. Though these chains were initially less impacted by the pandemic, they were dealt a significant blow by inflation – and have seen visits decline over the past three years. As hotels that cater to the most price-sensitive guests, these chains are particularly vulnerable to rising costs, and the first to suffer when consumer confidence takes a hit.
Luxury Hotels, on the other hand, have seen accelerated visit growth over the past year – and have succeeded in closing their pre-pandemic visit gap. Upscale chains, too, saw Q2 2024 visits on par with Q2 2019 levels. As tiers that serve wealthier guests with more disposable income, Luxury and Upscale Hotels are continuing to thrive in the face of headwinds.
But it is the Upper Midscale level – a tier that includes brands like Trademark Collection by Wyndham, Fairfield by Marriott, Holiday Inn Express by IHG Hotels & Resorts, and Hampton by Hilton – that has experienced the most robust visit growth compared to pre-pandemic. In Q2 2024, Upper Midscale Hotels drew 3.5% more visits than in Q2 2019. And during last year’s peak season (Q3 2023), Upper Midscale hotels saw the biggest visit boost of any analyzed tier.
As mid-range hotels that still offer a broad range of amenities, Upper Midscale chains strike a balance between indulgence and affordability. And perhaps unsurprisingly, hotel operators have been investing in this tier: In Q4 2023, Upper Midscale Hotels had the highest project count of any tier in the U.S. hotel construction and renovation pipeline.
The shift in favor of Upper Midscale Hotels and away from Economy chains is also evident when analyzing changes in relative visit share among the six hotel categories.
Upper Midscale hotels have always been major players: In H1 2019 they drew 28.7% of overall hotel visits – the most of any tier. But by H1 2024, their share of visits increased to 31.2%. Upscale Hotels – the second-largest tier – also saw their visit share increase, from 24.8% to 26.1%.
Meanwhile, Economy, Midscale, and Upper Upscale Hotels saw drops in visit share – with Economy chains, unsurprisingly, seeing the biggest decline. Luxury Hotels, for their parts, held firmly onto their piece of the pie, drawing 2.8% of visits in H1 2024.
Who are the visitors fueling the Upper Midscale visit revival? This next section explores shifts in visitor demographics to four Upper Midscale chains that are outperforming pre-pandemic visit levels: Trademark Collection by Wyndham, Holiday Inn Express by IHG Hotels & Resorts, Fairfield by Marriott, and Hampton by Hilton.
Analyzing the captured markets* of the four chains with demographics from STI: Popstats (2023) shows variance in the relative affluence of their visitor bases.
Fairfield by Marriott drew visitors from areas with a median household income (HHI) of $84.0K in H1 2024, well above the nationwide average of $76.1K. Hampton by Hilton and Trademark Collection by Wyndham, for their parts, drew guests from areas with respective HHIs of $79.6K and $78.5K – just above the nationwide average. Meanwhile, Holiday Inn Express by IHG Hotels & Resorts drew visitors from areas below the nationwide average.
But all four brands saw increases in the median HHIs of their captured markets over the past five years. This provides a further indication that it is wealthier consumers – those who have had to cut back less in the face of inflation – who are driving hotel recovery in 2024.
(*A chain’s captured market is obtained by weighting each Census Block Group (CBG) in its trade area according to the CBG’s share of visits to the chain – and so reflects the population that actually visits the chain in practice.)
Much of the Upper Midscale visit growth is being driven by chain expansion. But in some areas of the country, the average number of visits to individual hotel locations is also on the rise – highlighting especially robust growth potential.
Analyzing visits to existing Upper Midscale chains in four metropolitan areas with booming tourism industries – Salt Lake City, UT, Palm Bay, FL, San Diego, CA, and Richmond, VA – shows that these markets feature robust untapped demand.
Utah, for example, has emerged as a tourist hotspot in recent years – with millions of visitors flocking each year to local destinations like Salt Lake City to see the sights and take in the great outdoors. And Upper Midscale hotels in the region are reaping the benefits. In H1 2024, the overall number of visits to Upper Midscale chains in Salt Lake City was 69.4% higher than in H1 2019. Though some of this increase can be attributed to local chain expansion, the average number of visits to each individual Upper Midscale location in the area also rose by 12.5% over the same period.
Palm Bay, FL (the Space Coast) – another tourist favorite – is experiencing a similar trend. Between H1 2019 and H1 2024, overall visits to local Upper Midscale hotel chains grew by 36.4% – while the average number of visits per location increased a substantial 16.9%. Given this strong demand, it may come as no surprise that the area is undergoing a hotel construction boom. Upper Midscale hotels in other areas with flourishing tourism sectors, like San Diego, CA and Richmond, VA, are seeing similar trends, with increases in both overall visits and and in the average number of visits per location.
Though Economy chains have underperformed versus other categories in recent years, the tier does feature some bright spots. Some extended-stay brands in the Economy tier – hotels with perks and amenities that cater to the needs of longer-stay travelers – are succeeding despite category headwinds.
Choice Hotels’ portfolio, for example, includes WoodSpring Suites, an Economy chain offering affordable extended-stay accommodations in 35 states. In H1 2024, the chain drew 7.7% more visits than in the first half of 2019 – even as the wider Economy sector continued to languish. InTown Suites, another Economy extended stay chain, saw visits increase by 8.9% over the same period.
And location intelligence shows that the success of these two chains is likely being driven, in part, by their growing appeal to young, well-educated professionals. In H1 2019, households belonging to Spatial.ai: PersonaLive’s “Young Professionals” segment made up 9.6% of WoodSpring Suites’ captured market. But by H1 2024, the share of this group jumped dramatically to 13.3%. At the same time, InTown Suites saw its share of Young Professionals increase from 12.0% to 13.4%.
Whether due to an affinity for prolonged “workcations” (so-called “bleisure” excursions) or an embrace of super-commuting, younger guests have emerged as key drivers of growth for the extended stay segment. And by offering low–cost accommodations that meet the needs of these travelers, Economy chains can continue to grow their share of the pie.
The hospitality industry recovery continues – led by Upper Midscale Hotels, which offer elevated experiences that don’t break the bank. But today’s market has room for other tiers as well. By keeping abreast of local visitation patterns and changing consumer profiles, hotels across chain scales can personalize the visitor experience and drive customer satisfaction.
The past few years have provided the tourism sector with a multitude of headwinds, from pandemic-induced lockdowns to persistent inflation and a rise in extreme weather events. But despite these challenges, people are more excited than ever to travel – more than half of respondents to a recent survey are planning on increasing their travel budgets in the coming months.
And while revenge travel to overseas destinations is still very much alive and well, the often high costs associated with traveling abroad are shaping the way people choose to travel. Domestic travel and tourism are seeing significant growth as more affordable alternatives.
This white paper takes a closer look at two of the most popular domestic tourism destinations in the country – New York City and Los Angeles. Over the past year, both cities have continued to be leading tourism hotspots, offering a wealth of attractions for visitors. What does tourism to these two cities look like in 2024, and what has changed since before the pandemic? How have inflation and rising airfare prices affected the demographics and psychographics of visitors to these major hubs?
Analyzing the distribution of domestic tourists across CBSAs nationwide from May 2023 to April 2024 reveals New York and Los Angeles to be two of the nation’s most popular destinations. (Tourists include overnight visitors staying in a given CBSA for up to 31 days).
The New York-Newark-Jersey City, NY-NJ-PA metro area drew the largest share of domestic tourists of any CBSA during the analyzed period (2.7%), followed closely by the Los Angeles-Long Beach-Anaheim, CA CBSA (2.5%). Other domestic tourism hotspots included Orlando-Kissimmee-Sanford, FL (tied for second place with 2.5% of visitors), Dallas-Fort Worth-Arlington, TX (1.9%), Las Vegas-Henderson-Paradise, NV (1.8%), Miami-Fort Lauderdale-Pompano Beach, FL (1.8%), and Chicago-Naperville, Elgin, IL-IN-WI (1.6%).
The Big Apple. The City That Never Sleeps. Empire City. Whatever it’s called, New York City remains one of the most well-known tourist destinations in the world. And for many Americans, New York is the perfect place for an extended weekend getaway – or for a multi-day excursion to see the sights.
But where do these NYC-bound vacationers come from? Diving into the data on the origin of visitors making medium-length trips to New York City (three to seven nights) reveals that increasingly, these domestic tourists are coming from nearby metro areas.
Between 2018-2019 and 2023-2024, for example, the number of tourists visiting New York City from the Philadelphia metro area increased by 19.2%.
The number of tourists coming from the Boston and Washington, D.C metro areas, and from the New York CBSA itself (New York-Newark-Jersey City, NY-NJ-PA) also increased over the same period.
Meanwhile, further-away CBSAs like San Francisco-Oakland-Berkeley, CA, Atlanta-Sandy Springs-Alpharetta, GA, and Miami-Fort Lauderdale-Pompano Beach, FL fed fewer tourists to NYC in 2023-2024 than they did pre-pandemic. It seems that residents of these more distant metro areas are opting for vacation destinations closer to home to avoid the high costs of air travel.
Diving even deeper into the characteristics of visitors taking medium-length trips to New York City reveals another demographic shift: Tourists staying between three and seven nights in the Big Apple are skewing younger.
Between 2018-2019 and 2023-2024, the share of visitors to New York City from areas with median ages under 30 grew from 2.1% to 4.5%. Meanwhile, the share of visitors from areas with median ages between 31 and 40 increased from 34.3% to 37.7%.
The impact of this trend is already being felt in the Big Apple, with The Broadway League reporting that the average age of audiences to its shows during the 2022- 2023 season was the youngest it had been in 20 seasons.
The shift towards younger tourists can also be seen when examining the psychographic makeup of visitors to popular attractions in New York City. Analyzing the captured markets of major NYC landmarks with data from Spatial.ai’s PersonaLive dataset reveals an increase in households belonging to the “Educated Urbanites” segment between 2018-2019 and 2023-2024.
These well-educated, young singles are increasingly visiting iconic NYC venues such as the Whitney Museum of American Art, The Metropolitan Museum of Art, The American Museum of Natural History, and the Statue of Liberty. This shift highlights the growing popularity of these attractions among young, educated singles, reflecting a broader trend of increased domestic tourism among this demographic.
New York City’s tourism sector is adapting to meet the changing needs of travelers, fueled increasingly by younger visitors who may be unable to take a costly international vacation. How have travel patterns to Los Angeles changed in response to increasing travel costs?
While New York City is the East Coast’s tourism hotspot, Los Angeles takes center stage on the West Coast. And as overseas travel has become increasingly out of reach for Americans with less discretionary income, the share of domestic tourists originating from areas with lower HHIs has risen.
Before the pandemic, 57.6% of visitors to LA came from affluent areas with median household incomes (HHIs) of over $90K/year. But by 2023-2024, this share decreased to 50.7%. Over the same period, the share of visitors from areas with median HHIs between $41K and $60K increased from 9.7% to 12.5%, while the share of visitors from areas with HHIs between $61K and $90K rose from 32.1% to 35.8%.
Diving into the psychographic makeup of visitors to popular Los Angeles attractions – Universal Studios Hollywood, Disneyland California, the Santa Monica Pier, and Griffith Observatory – also reflects the above-mentioned shift in HHI. The captured markets of these attractions had higher shares of middle-income households belonging to the “Family Union” psychographic segment in 2023-2024 than in 2018-2019.
Experian: Mosaic defines this segment as “middle income, middle-aged families living in homes supported by solid blue-collar occupations.” Pre-pandemic, 16.0% of visitors to Universal Studios Hollywood came from trade areas with high shares of “Family Union” households. This number jumped to 18.8% over the past year. A similar trend occurred at Disneyland, Santa Monica Pier, and Griffith Observatory.
And like in New York City, growing numbers of visitors to Los Angeles appear to be coming from nearby areas. Between 2018-2019 and 2023-2024, the share of in-state visitors to major Los Angeles attractions increased substantially – as people likely sought to cut costs by keeping things local.
Pre-pandemic, for example, 68.9% of visitors to Universal Studios Hollywood came from within California – a share that increased to 72.0% over the past year. Similarly, 59.7% of Griffith Observatory visitors in 2018-2019 came from within the state – and by 2023-2024, that number grew to 64.7%.
Even when times are tight, people love to travel – and New York and Los Angeles are two of their favorite destinations. With prices for airfare, hotels, and dining out increasing across the board, younger and more price-conscious households are adapting, choosing to visit nearby cities and enjoy attractions closer to home. And as the tourism industry continues its recovery, understanding emerging visitation trends can help stakeholders meet travelers where they are.
