The Points Guy on travel outlook after COVID-19

The Points Guy Founder and CEO Brian Kelly joins Yahoo Finance’s Zack Guzman to discuss the outlook on travel, as a new TPG survey finds 31% of Americans would consider taking a vacation by end of summer.

Video Transcript

ZACK GUZMAN: As we're talking about destinations for travel, and a lot of Americans out there, of course, Disneyland always one on the top of the list for a lot of kids out there. But when we think about the fact that we are still in a pandemic situation here with coronavirus cases still being watched closely, an interesting new survey is out from the Points Guy looking at the way that Americans might not necessarily be excited right now to travel.

A new poll showing that only about 31% of Americans would consider taking a vacation by the end of summer. For more on that survey, I want to bring on the Points Guy himself. Founder of the Points Guy and CEO Brian Kelly joins us right now. Brian, appreciate you joining us. What more were you able to tease out in looking at how Americans are still maybe thinking about taking trips, though a little bit ticked down from what they used to do?

BRIAN KELLY: Well, I guess I'm one of those 10%, because I just booked a trip to St. Lucia, which is the first Caribbean island opening up in early June. But it's clear, you know, Americans are fearful of travel by airplane until there's a vaccine. I think 40% of our respondents said that they're not going to get on a plane until there's a vaccine.

And the key trends are that, you know, people want to travel interstate and on road trips, but that may not make a whole lot of sense considering air travel is way safer than driving historically, and I think the airlines and airports are doing a ton to reduce the risk of transmission-- probably a lot more than rest stops. So I think, you know, there's still just so many unknowns. But it's clear Americans-- most are not going to travel this summer-- or planning to-- until there is major change.

ZACK GUZMAN: I mean, it's a good reminder that, you know, we often overlook the good, old-fashioned road trip here. But with gas prices down and you know, the safety that comes with traveling with your family in your car, what are you seeing on that front as maybe people shift back towards taking road trips?

BRIAN KELLY: Yeah road trips-- I, myself-- so I'm a jet-setter. Every summer I'm in Europe or wherever. And I actually started-- I was on Outdoorsy, and there's other sites like RV Share where you can rent, like, luxury air streams. And some of them are, like, private jets, which got me interested in it. I was like, maybe I can do this cross-country trip. But our national parks are amazing.

I'm embarrassed at how few I've been to. So I see a lot of people doing that. Although, you know, for those people who are more comfortable, countries are opening up. Iceland is also opening up June 15, and they'll test every person arriving. You'll still get to go to your hotel until you get the results. If you do have the virus, you have to quarantine. But I think it's-- you know, outdoorsy type vacations are going to be the trend this summer.

ZACK GUZMAN: You know, the interesting other trend that your guys' report highlighted is one that I think was captured in a lot of means at the end of things being open, which was, of course, drunk millennials on the beach-front properties out there. And when you looked into the age demographics of Americans that say that they would be able to travel, safe to travel right now, it does seem like the younger Americans out there are still the ones who are most eager to get back in the air.

BRIAN KELLY: Yeah, for sure. And it's interesting-- you know, just today, the CDC came out with guidance. Like, so much of what we knew-- you know, I was on the news in March saying, oh, you don't need to travel with the mask. The CDC says that you don't have to. Now they're like, you do. And the CDC today came out with that actually, the virus doesn't really spread that much on surfaces like packages and groceries and on airplane seats.

So I think people's attitudes will change once we get the actual picture of the transmissibility. And certainly young people, you know, when you look at the pure numbers, you know, most young people have nothing to worry about with the virus. I myself had it. I've tested twice now for the antibodies, and I had maybe what was the equivalent of a cold and scratchy throat and upset tummy. So certainly, the virus is hurting a lot of people, I don't want to minimize it. But I definitely think in the different trend groups, you know, different age groups, there will be much different attitudes on travel.

ZACK GUZMAN: And when you look at that, I mean, what's the overall takeaway then when we think about-- you know, we heard anecdotal reports when we were first starting the lockdown is that, oh, now it's going to be super cheap out there to travel. That wasn't necessarily the case when people actually went to buy tickets. So I wonder how much that's impacting maybe some of these destinations when you look at prices-- if you might have younger Americans traveling and going to some of these destinations.

BRIAN KELLY: I'll be hon-- I mean, flights are really cheap. Iceland was $350 round trip in coach, $800 in business class. I'm going to-- I think I'm going to go to Iceland too when it opens. In the name of journalism, I've got to get out there and see. But I mean, you know, to me, it's a once in a lifetime opportunity. Iceland is historically overcrowded, and I'm going to go-- you know, go into the Blue Lagoon, which you usually can't even get a reservation to, but going when no one's there-- and I'm going to do scuba diving, and all of the scuba sites are offering 30% off. And the hotels are also offering really cheap rates and full cancelation.

So there are definitely deals out there for those who have the appetite to travel. I think it's going to be a great summer to travel, because it'll be-- you know, you'll never see Mikonos again with just, you know, a moderate amount of people. But you know, Greece is the big question mark. They just said today, July 1. But I think what a lot of Americans need to know is we may not be included. A lot of countries are saying, yeah, we're opening up, but, you know, UK, Brazil, America-- like, we still don't want you. So our powerful passport may not be so powerful in the years after this until there's a vaccine.

ZACK GUZMAN: It's all right as long as you're all right with whatever tanlines might come from wearing a mask out there. Brian Kelly, founder and CEO of the Points Guy, I appreciate you joining us, as always, man. Be well.

BRIAN KELLY: Thanks for having me.