IT’S PERSONAL: Expedia industry outlook and predictions

To paraphrase Monty Python, travel is “not dead yet,” according to the Expedia Group, referencing an early pandemic headline, “Travel as we know it is officially dead.” Rather, such fatalistic proclamations were “quickly debunked,” says the online travel retailer, as travellers adapted to pandemic realities, ultimately leading to resurgence in demand for the travel industry, particularly when testing and vaccines became readily available.

To that end, the Group has released its new “Traveler Value Index: 2022 Outlook Report,” which takes the barometer of the “new normal” in travel and suggests that entering the third year of the global health crisis people will spend more on travel, embark on purpose-driven and sustainable trips, and prioritize ultimate flexibility when it comes to emerging from their pandemic cocoons to travel again in 2022.

Among the takeaways from the Index, which is based on a new study conducted in collaboration with Wakefield among 5,500 adults across eight countries, including Canada, combined with Expedia Brands proprietary data are:

• More than 9 in 10 travellers (91%) plan to take a leisure trip in the next 6 months.
• Nearly 3 in 4 (72%) Canadian travellers expect to take a trip by car over the next 12 months, with nearly 1 in 5 (19%) expecting to take a trip by cruise or ship.
• 43% of Canadians expect to travel internationally in the next 6 months
• More than half (54%) of Canadians say they are willing to pay extra fees so that their trip can be more sustainable.
• More than half (55%) of Canadians say they will spend more on travel than prior to COVID-19 – on average $2,567.
• 3 in 10 Canadians (32%) plan to use loyalty points for at least part of a trip in 2022.

The findings suggest that after two years of enduring a global pandemic, people value travel and personal time more than ever.

Simultaneously, travellers have started to adapt to the realities of COVID-19, ranking flex travel at the top of their priorities and focusing intently on travelling for good, including taking steps such as tipping industry workers more and choosing less crowded destinations to limit effects of over-tourism. The report underscores the resilience of the industry and reveals how travel companies can adapt to achieve a competitive advantage in this rapidly evolving environment.

“Travel is about to experience a year unlike ever before as people plan purpose-driven trips, value vacation time more, and up their investment in unique experiences,” says Ariane Gorin, President, Expedia for Business. “Still, travellers are preparing themselves for possible trip changes as COVID-19 persists, and they want an array of options at their fingertips. Travel companies that prioritize safety and wellbeing, innovative solutions, and transparent communication will be the clear leaders as the entire industry shifts from survival mode into accelerated demand and growth.”

Other findings from the report include:

There will be a surge in travel for personal wellness

• The pandemic caused people to reflect on the importance of spending time with family and preserving their own personal wellbeing. Most people (81%) plan to take at least one vacation with family and friends in the next six months, and the majority are seeking quick doses of adventure, with more than three quarters (78%) expressing an interest in frequent short trips.

• Similarly, nearly half (41%) of Canadian travellers are searching for a sense of contentment and mental wellbeing on their next trip.

The new world of work will alter traveller priorities

• As companies prepare to return to the office and evolve remote work policies, employees are looking to make greater use of their vacation time, and in some cases, combine work and play. More than half (56%) of those who often work remotely will take a “bleisure” style trip — extending a work trip for leisure, or vice versa.

Investment in travel will boom compared to pre-pandemic

• More than half (54%) of respondents say they plan to spend more on trips than they did prior to the pandemic.

• Two in 5 (40%) plan to use loyalty points for at least part of a trip in 2022, with Gen Z in the lead.

People will travel more responsibly and consciously, with an increased focus on sustainability

• Over half of people (59%) are willing to pay more fees to make a trip sustainable, and 49% would choose a less crowded destination to reduce effects of over-tourism.

• Nearly half (43%) will add in extra time for services and transit, helping to minimize long lines, stress on workers, and missed flights.

Travellers will be on the hunt for great deals and flexibility

• Almost all (84%) respondents agree that a discounted fee is influential when booking a flight online.

• A nearly identical percentage (83%) say flexible fare options makes a world of difference.