WILL TRAVEL WIN IN 2022, AS INFLATION BITES?

Is your brand geared up for how consumer behaviour and attitudes are likely to shape the landscape of travel in the coming months?

A lot of recent media attention has focused on a travel rebound. However, those operating within the travel sector remain cautious and uncertain, acutely aware of external factors that are likely to have a significant impact on consumer appetite for holidaying, affordability, and the logistics surrounding traveling. As we shift to a ‘post-pandemic’ world, the global travel scene is still affected the challenges of travel restrictions and vaccination passports, and we worry that the hoped-for recovery to pre-pandemic levels will be stunted by political and civil unrest, and the looming threat of a volatile economy.

Now that we are at the end of the first quarter of 2022, it’s time to take a fresh look, from a consumer perspective, at the state of the travel industry. Here we provide a flavour of some of the emerging themes that are likely to characterise consumer behaviour and attitudes to travel in the coming year and beyond.

Amidst concerns of hopes for the travel sector being dashed by setbacks, there is, nevertheless, a steady resurgence, with research showing us that confidence around travel is on the rise; there is clearly an appetite for holidays in 2022, with an opportunity to engage with consumers as they think about their options.

Stage of planning for 2022

Across all life-stages, consumers have some idea of their next trip, and are doing their research. Younger, ‘pre-family’ consumers are a key audience to reach out to at the planning stage; they are the most likely (at 43%) to have ideas about their travel plans, but not to have booked anything yet. Empty nesters, on the other hand, are the most likely (at 26%) to have already committed and to have booked at least one holiday.

Intended holiday spend for 2022

A significant proportion of consumers are looking to spend more than usual on their holiday in 2022, suggesting that there is pent up demand for taking a break, and a need for something special after such a long hiatus. Furthermore, 1 in 5 holiday planners are seeking something new for their next holiday. This trend towards indulgence means there is a real opportunity for brands and agents at the higher end of the market.

Understandably, parents with young families seek active holidays to keep their children occupied. 31% are looking for good facilities for their children as a key priority when booking a holiday.

Parents with children under 11 are…

*than the average consumer

Sustainability also plays an important role, with around 75% of holiday planners with young families more likely than average to cite environmental impacts and threats as a major influence when booking. Travel providers offering off-grid adventures are a real draw for this audience.

What has really changed for families over the last 2 years, however, is the significant logistical challenges they now face, with the inconsistency in travel restrictions across Europe and beyond, with the different vaccination requirements and Covid protocols needed. With children under 5 still less likely to have been vaccinated, Covid-19 continues to impact planning a vacation for parents with young children.

1 in 3 parents with children are intending to book a holiday abroad this year, which shows that there is undoubtedly a healthy appetite to resume foreign travel. The reliance on travel agents, however, has increased for families, who seek reassurance, advice and support from those with a handle on the latest restrictions, as travel arrangements remain complicated, and have the potential to really spoil a holiday.

Older holiday planners, unrestrained by children and school holidays, have the luxury of time and choice, and are making up for lost time after two years of relative restriction. They are 25% more likely than average to be seeking to experience something new,  and are twice as likely to be spending much more on travel in 2022. Once in a lifetime trips are likely to be a big draw for older travellers this year. 

However, whilst a sizeable number of empty nesters are hungry for new experiences, 1 in 5 are keen to return to places that they know. For this audience especially, new experiences can cause nervousness and trepidation, whilst keeping in one’s comfort zone inspires confidence and limits anxiety.

Cruising holidays – both ocean and (increasingly) river cruises – remain a firm favourite with this age group, as they tick all of the boxes in terms of familiarity, ease of travel and safety; cruises offer the opportunity to travel less, but to take more time over doing so – the perfect combination for those seeking a more relaxed, slower-paced, less frenetic, yet special holiday. Driving holidays are also high on the agenda for this audience, together with country escapes, both of which offer a good degree of privacy and avoid crowds.